Schaeffler Books Up to EUR 240 Million E-Mobility Charge as European OEMs Lose Ground in China, While Restructuring Lands a Year Early and Ahead of Target
October 13, 2026 – Shareholder and analyst update call ahead of the November 3 Q3 release
Schaeffler used a short-notice call to pair a second round of e-mobility clean-up with evidence that its cost program is running ahead of plan. The company booked a one-off charge of EUR 220 million in Q3, which it expects to rise to around EUR 240 million with a top-up in Q4. CEO Klaus Rosenfeld framed the move as risk reduction rather than retreat. He said the headwinds are "not temporary, but probably more a continuous trend that we need to deal with." Management also released preliminary Q3 figures and confirmed both full-year guidance and the revised midterm targets.
E-Mobility: A Second Clean-Up, Driven by China
The trigger is the weak performance of European OEMs in China, which Rosenfeld said accelerated over the summer. Schaeffler is addressing overcapacity created by lower volumes, shifted start-of-production dates and some project cancellations. The write-down mainly covers capitalized R&D and other assets tied to those programs. The company also decided to exit the thermal management systems business, though the thermal module and components business will stay. In Rosenfeld's words, "where we cannot make money going forward, it's better to exit the business."
Management expects the charge to deliver a double-digit million euro EBIT benefit in subsequent years, mainly through lower future depreciation. This is the second such step in consecutive years, after a similar transaction in Q4 2025 tied to the Americas. Investors should read the repetition as a sign that the e-mobility order book was built on volume assumptions that no longer hold. Rosenfeld did not claim the problem is solved. Asked whether European OEM share losses in China could reverse, he said, "I don't have a crystal ball," and added that "it's good to be risk averse. It's good to take off risk from the balance sheet."
Schaeffler is not refocusing away from China. Rosenfeld said the strategy still includes winning business with Chinese OEMs, including for their exports to Europe. He also sees opportunity in Europe, supported by higher oil prices and subsidies.
The charge does not include any compensation from customers for volumes that fell short of nominations. Rosenfeld said Schaeffler will pursue it, "but you can be rest assured that we will go after this," while acknowledging it can be harder when a European supplier negotiates with a Chinese customer, even one belonging to a European group. He said compensation is typically part of a larger negotiation package. On the order book, he said volumes and SOP timing are reviewed regularly, so adjustments flow through continuously rather than only after write-downs. No updated e-mobility order book figure was provided.
Self-Help: Faster, Larger and Cheaper Than Promised
The cost program announced in November 2024 after the Vitesco merger targeted 4,700 gross job reductions by 2029 at the latest. Schaeffler now expects to deliver it a year earlier. Of the 3,926 reductions planned for 2026, 3,715 employees have already left, and roughly 800 further exits are covered by signed contracts. The EBIT benefit is now above EUR 350 million, against the original EUR 290 million, an overachievement of more than 20%. Rosenfeld attributed this to fewer internal transfers and a more rigorous net reduction. The headcount provision came in at EUR 420 million, EUR 84 million below the EUR 504 million originally announced.
On top of this, Schaeffler used the window before German pension reform potentially removes partial retirement tools. On August 5 it offered employees early retirement contracts and received 1,768 signed contracts by October 5, against a target of 1,300. Of these, 1,569 are "3 plus 3" contracts, with active phases ending by the end of 2029. The company had assumed a 20% uptake rate. The structure gives a cash benefit of EUR 50 million in 2027, while the EBIT effect only arrives in 2029. Schaeffler booked EUR 70 million of provisions for one-time payments, effectively reusing the EUR 84 million released from the earlier program.
Rosenfeld stressed that the savings are not being offset elsewhere. Group headcount is down 6,143 since December 2024, which he said shows the company is "not rebuilding what we get rid of elsewhere."
Preliminary Q3: Mid-Range Results, Strong Cash Flow
Q3 group EBIT margin was 4.2%, which management said was in line with its expectation that the second half would be weaker than the first. The nine-month margin is 4.5%, exactly the middle of the guidance range. E-Mobility improved from a negative 17.8% in Q1 to a negative 13.1%, which Rosenfeld called "certainly not there where it should be," though it remains within the range for the nine months. Powertrain & Chassis posted 10.2% in Q3 and 10.8% for nine months. Vehicle Lifetime Solutions earned 15.1%, and Bearings & Industrial Solutions came in close to 9%. Free cash flow was above EUR 260 million in Q3. It is not yet positive for the nine months, but Q4 is typically the strongest cash quarter.
Citi's Ross MacDonald asked why a pre-release was needed given the modest deviation from consensus. Rosenfeld described it as pragmatic, saying the clean-up, the restructuring news and the humanoid update were ready together, and that it was "definitely not a profit warning." Jefferies' Vanessa Jeffriess noted the small shortfall against consensus appears to stem from a larger loss in the "other" line. Management declined to quantify it, deferring to the November 3 release. Rosenfeld cautioned that the line includes more than new growth areas, such as parts of the special machinery business.
On Q4, CFO Christophe Hannequin described a "cautiously optimistic approach." He pointed to seasonal softness in Bearings & Industrial Solutions and Powertrain & Chassis, some raw material inflation and price pressure, and the usual Q4 wrap-up of customer negotiations in mobility, which tends to support the bottom line. Management said Vehicle Lifetime Solutions has largely resolved the operational constraints that limited its response to demand in the first half. September was strong, and the division was in line with plan at the start of October.
On Powertrain & Chassis, Hannequin said the year-to-date margin carries the weight of a dispute settlement and quality issue with one customer. He said recent China exposure, tied to combustion engine volumes, has hurt more than at other divisions. The open question is what the Chinese combustion market does in 2027 and beyond. Management still believes it has a path to the 2028 midterm target.
Humanoids: Order Book Reaches EUR 400 Million
Schaeffler said two new China-based customers placed production orders, bringing the number of customers in serious production to five. The humanoid order book is now EUR 400 million. Sample orders rose to 83, and some customers are sourcing additional products. Rosenfeld acknowledged that "the hype that was there at the beginning is coming down a bit," but he continues to treat humanoids as one of four new growth areas, alongside defense and others. Revenue contribution and timing were not discussed, and the "other" line shows these businesses still cost money.
Schaeffler will cancel the pre-close call planned for October 14, as the pre-release replaces it. The full Q3 release follows on November 3, when investors should expect more detail on the "other" line, segment drivers and the e-mobility charge.