Wacker Neuson (ETR:WAC) narrowed its 2026 operating margin outlook after reporting higher revenue and profit for the first nine months of the year, as a mixed market and further restructuring costs weighed on its expectations for the final quarter.
The construction and agricultural equipment maker reported nine-month revenue of €1.85 billion, up nearly 14% from a year earlier. Earnings before interest and taxes reached €150 million, giving the company an EBIT margin of 8.1%, more than two percentage points above the prior-year level.
Third-quarter revenue rose 7% to €590 million, while the EBIT margin improved slightly to 7.7%. CEO Karl Tragl said costs from optimization measures and U.S. tariff-related refunds largely offset each other during the quarter, leaving the reported margin reflective of underlying operating performance.
Margin Outlook Narrowed
Wacker Neuson maintained its full-year revenue forecast of €2.3 billion to €2.4 billion but lowered the top end of its EBIT margin range. It now expects a margin of 7.0% to 7.5%, compared with its previous forecast of 7.0% to 8.0%.
Tragl said the revised range, which reduces the midpoint by 25 basis points, reflected a softer market environment during the third quarter and the impact of one-off items. The company expects investment of approximately €70 million for the year and continues to target a net working capital ratio below 30%.
During the question-and-answer session, Tragl said the company expected further negative one-off costs in the fourth quarter, with only a small amount of tariff refunds. Planned actions include another reduction in the rental fleet, personnel adjustments and changes to regional sales structures.
Asked for a ballpark estimate of those costs excluding the rental fleet, Head of Investor Relations and Corporate Communications Peer Schlinkmann described a lower single-digit million-euro amount.
Growth Across Major Product Areas
Europe, the company’s largest region, increased revenue by more than 13% year over year, CFO Reinhard Frisch said. He cited stronger demand in France, the U.K., Sweden, the Netherlands, Spain and the Czech Republic, while demand in the DACH region remained more subdued.
Revenue in the Americas rose nearly 17%, with the U.S., Canada and Mexico contributing to growth. Demand was particularly strong for compaction and worksite equipment. Asia-Pacific remained the weakest region, affected by subdued demand in several markets.
By business segment, compact equipment revenue grew approximately 18%, supported by demand for excavators, wheel loaders, telehandlers and dumpers, particularly in Europe. Light equipment grew roughly 12%, while services increased about 4%.
Frisch said rental revenue was approximately €165 million in the first nine months, or 9% of group revenue, and was broadly flat year over year. The company plans to reduce the rental fleet further in the fourth quarter to improve utilization.
Cash Flow and 2030 Strategy
Free cash flow reached €127 million in the first nine months, helped by working capital management. The net working capital ratio stood at 28.2% at the end of September, below the company’s 30% strategic target. Net financial debt declined to €130 million, and leverage improved to 0.4 times EBITDA, Frisch said.
Although investment was comparatively low in the first nine months, Frisch said the company expected to increase spending significantly in the fourth quarter while maintaining full-year free cash flow at a three-digit million-euro level.
Wacker Neuson also outlined actions supporting its previously communicated goal of approximately €3.5 billion in revenue by 2030, down from an earlier ambition of €4 billion. Its other long-term targets remain an EBIT margin above 11% and a net working capital ratio below 30%.
Tragl said the company expects market-share gains in light and compact equipment to add €400 million to €500 million in revenue, while services, aftermarket and digital activities could contribute €200 million to €300 million. Growth in the Americas and selected opportunities in Asia-Pacific are expected to add another €400 million to €500 million, supported in part by the company’s John Deere excavator partnership.
Asked about recent trading, Tragl said October order intake remained mixed across regions. With lead times of two to three months, he said November orders would be important in determining how the company starts the first quarter, and production decisions would follow in December.
About Wacker Neuson (ETR:WAC)
Wacker Neuson SE manufactures and distributes light and compact equipment in Germany, Austria, the United States, and internationally. It operates through three segments: Light Equipment, Compact Equipment, and Services. The company provides internal and external vibrators for concrete compaction; rammers; vibratory plates; rollers for soil compaction; demolition and light products; generators; pumps; and heaters. It also offers compact equipment, including excavators, wheel loaders, telescopic wheel loaders, skid steer loaders, telehandlers, wheel and track dumpers, and backhoe loaders, as well as related product attachments and accessories.
