Wacker Neuson Cuts Top of 2026 Margin Outlook to 7.5%

Wacker Neuson (ETR:WAC) lowered the top end of its full-year EBIT margin range to 7.5% from 8.0%, even as nine-month revenue climbed nearly 14% to €1.85 billion. The construction and agricultural equipment maker kept its revenue forecast of €2.3 billion to €2.4 billion but trimmed the margin midpoint by 25 basis points, citing a softer market and one-off items.

Earnings before interest and taxes reached €150 million in the first nine months, giving an EBIT margin of 8.1% — more than two percentage points above the prior-year level. Third-quarter revenue rose 7% to €590 million, with the EBIT margin improving 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. That balance will not repeat. Tragl told the question-and-answer session to expect further negative one-off costs in the fourth quarter, with only a small amount of tariff refunds.

What actions are planned for the fourth quarter?

• A further reduction in the rental fleet
• Personnel adjustments
• 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. The company expects investment of approximately €70 million for the year and continues to target a net working capital ratio below 30%.

Where is growth coming from?

Europe, the company's largest region, grew 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; demand was particularly strong for compaction and worksite equipment. Asia-Pacific remained the weakest region, affected by subdued demand in several markets.

By segment:

• Compact equipment revenue grew approximately 18%, supported by excavators, wheel loaders, telehandlers and dumpers, particularly in Europe
• Light equipment grew roughly 12%
• Services increased about 4%

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 shrink the rental fleet further in the fourth quarter to improve utilization.

How does the balance sheet look?

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 30% strategic target. Net financial debt declined to €130 million, and leverage improved to 0.4 times EBITDA, Frisch said. Investment ran comparatively low in the first nine months; Frisch said spending would rise significantly in the fourth quarter while full-year free cash flow stays at a three-digit million-euro level.

What is the 2030 plan?

Wacker Neuson reaffirmed its goal of approximately €3.5 billion in revenue by 2030, down from an earlier ambition of €4 billion, alongside an EBIT margin above 11% and a net working capital ratio below 30%. Tragl said market-share gains in light and compact equipment should add €400 million to €500 million in revenue, services, aftermarket and digital activities €200 million to €300 million, and growth in the Americas plus selected Asia-Pacific opportunities another €400 million to €500 million — the last supported in part by the John Deere excavator partnership. Each of those ranges carries execution risk the company did not quantify.

On near-term trading, Tragl said October order intake remained mixed across regions. With lead times of two to three months, November orders will determine how the company starts the first quarter, and production decisions follow in December.

The revenue forecast survived; the margin ceiling did not.