GICS Sector : Basic Materials
Fuchs Petrolub SE develops, produces, and sells lubricants and related specialties worldwide.It offers engine and gear oils, central hydraulic oils, greases, shock absorber fluids, biodegradable lubricants; brake fluids and radiator antifreeze products; multi-purpose/long-life, wheel bearing, food grade, and biodegradable greases; greases for plain and roller bearings, extreme temperatures, rail vehicles, machine tools, and central lubricating systems; gear boxes; and assembly pastes and greases in spray cans; slide way, heat transfer, hydraulic, refrigerator, compressor, machine, textile machine, transformer, turbine, and cylinder oils; and biodegradable and adhesive lubricants.The company also offers quenching fluids, corrosion preventives, minimum lubricating products, cleaners, cutting and grinding lubricants, and forming lubricants; and food-compliant lubricants, adhesive lubricants for open transmissions, anti-friction coatings and films for dry coating, pastes and special greases, concrete release agents and high-temperature chain oils, as well as lubricants for the glass manufacturing, hot forming, the wind energy, and sugar industries.
FUCHS SE reported a robust recovery in Q3 2025, with sales rising 1% to EUR 2.7 billion, despite a challenging environment, especially in Europe. The company's EBIT developed positively, exceeding last year's Q3 results, with a profitability of EUR 326 million after 9 months, which is EUR 8 million or 2% below the prior year. The actual EPS came out at '0.64', beating estimates at '0.627'. The company's free cash flow came in at EUR 181 million.
Publication Date: Nov -10
The growth came from all regions, with Asia Pacific and the Americas showing strength, particularly in China, where the company's decision to invest in local production is paying off. In EMEA, acquisitions offset the organic decline, with total profitability slightly above the prior year's level. The company's presence in China has expanded beyond cars and trucks to machine industry, windmill manufacturers, and mining equipment, setting them apart from other German and Middle Eastern companies.
FUCHS confirmed its 2025 outlook, expecting sales to remain at the same level as last year, with EBIT and FVA expected to close at a strong level. The company also expects to generate a free cash flow before acquisitions of around EUR 260 million. For 2026, the company has a modest budget and expects volume growth, with analysts estimating revenues growth at 3.2%.
The company implemented cost-cutting measures, seeing an initial impact in Q3, with a similar impact expected in Q4. These cost-cutting measures are not expected to come back in 2026, as the company is being cautious with spending, cutting costs like travel and consulting fees that won't bounce back, as stated by Esma Saglik, "they are being cautious with spending, cutting costs like travel and consulting fees that won't bounce back."
With a P/E Ratio of 17.48 and an EV/EBITDA of 8.76, the company's valuation appears reasonable. The Dividend Yield stands at 3.01%, indicating a stable return for investors. The ROE of 15.6% and ROIC of 14.11% suggest a strong profitability. The Net Debt / EBITDA ratio of 0.11 indicates a healthy debt position.
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Fuchs Petrolub SE's Industrial Lubricants and Specialties segment growth of 3.5% is driven by increasing demand from the automotive and industrial manufacturing sectors, expansion into emerging markets, and a focus on innovative, high-performance products. Additionally, strategic acquisitions and partnerships have enhanced the company's market presence and capabilities.
Fuchs Petrolub SE's 4.5% growth in Automotive Lubricants is driven by increasing demand for high-performance lubricants, growing vehicle parc, and rising average vehicle age. Additionally, the shift towards electric and hybrid vehicles, as well as stricter emissions regulations, boost demand for specialized lubricants. Fuchs' strong brand reputation, innovative products, and expanding distribution network also contribute to its growth.
Fuchs Petrolub SE's 2.5% growth in the 'Other' segment is driven by increasing demand for specialty lubricants in the renewable energy sector, expansion into emerging markets, and strategic partnerships to enhance product offerings and distribution channels.
Fuchs Petrolub SE offers a wide range of lubricants for various industries, including automotive, industrial, and aerospace. Their lubricants are designed to provide superior performance, fuel efficiency, and environmental sustainability.
Fuchs Petrolub SE's coolants are designed to provide optimal engine cooling, corrosion protection, and freeze protection. They are suitable for use in passenger cars, commercial vehicles, and industrial applications.
Fuchs Petrolub SE's brake fluids are formulated to provide superior braking performance, corrosion protection, and high-temperature stability. They are suitable for use in passenger cars, commercial vehicles, and motorcycles.
Fuchs Petrolub SE's greases are designed to provide long-lasting lubrication, corrosion protection, and wear reduction in a wide range of applications, including automotive, industrial, and aerospace.
Fuchs Petrolub SE's specialty products include a range of customized lubricants and chemicals for specific industries, such as food processing, pharmaceuticals, and aerospace.
The threat of substitutes for Fuchs Petrolub SE is moderate, as there are alternative lubricant products available in the market, but the company's strong brand reputation and quality products help to mitigate this threat.
The bargaining power of customers is low, as Fuchs Petrolub SE has a diverse customer base and no single customer accounts for a significant portion of its revenue.
The bargaining power of suppliers is moderate, as Fuchs Petrolub SE relies on a few key suppliers for its raw materials, but the company's strong relationships with these suppliers help to mitigate this risk.
The threat of new entrants is low, as the lubricant industry has high barriers to entry, including significant capital requirements and regulatory hurdles.
The intensity of rivalry in the lubricant industry is high, as there are several established players competing for market share, and Fuchs Petrolub SE must continually innovate and improve its products to remain competitive.
| Value | |
|---|---|
| Debt Weight | 3.38% |
| Debt Cost | 8.16% |
| Equity Weight | 96.62% |
| Equity Cost | 8.16% |
| WACC | 8.16% |
| Leverage | 3.50% |
Value: 7.7
Growth: 2.8
Quality: 3.9
Yield: 9.4
Momentum: 1.0
Volatility: 7.7
1-Year Total Return ->
Value: 5.1
Growth: 5.6
Quality: 7.2
Yield: 5.0
Momentum: 3.0
Volatility: 6.3
1-Year Total Return ->
Value: 7.1
Growth: 5.6
Quality: 5.1
Yield: 5.6
Momentum: 1.5
Volatility: 7.3
1-Year Total Return ->
Value: 7.3
Growth: 3.4
Quality: 3.2
Yield: 7.5
Momentum: 0.5
Volatility: 6.0
1-Year Total Return ->
Value: 6.3
Growth: 3.7
Quality: 3.1
Yield: 6.9
Momentum: 0.0
Volatility: 6.0
1-Year Total Return ->
Value: 4.2
Growth: 6.6
Quality: 5.0
Yield: 3.1
Momentum: 0.5
Volatility: 6.0
1-Year Total Return ->