Schaeffler AG: E-Mobility and Financial Projections

Schaeffler AG's recent financial update for 2025 was largely uneventful, with a conservative outlook for 2026. The company's target revenue for 2026 is set at EUR 23.5bn, significantly below its medium-term goal of EUR 27-29bn by 2028. To bridge this gap, Schaeffler aims for a substantial revenue increase, particularly in E-Mobility, which must nearly double its contribution. Additionally, the EBIT margin is expected to improve from 4.5% to 6-8% by 2028, driven by loss reduction in E-Mobility, synergies, and revenue growth.

Despite the market's skepticism, Schaeffler's shifting powertrain mix indicates a strategic pivot, with a notable increase in hybrid order intake. The company's shares trade at a discount compared to peers, reflecting these uncertainties. However, a 20% dividend hike to EUR 0.30 per share offers some reassurance to investors.