PWO Group issued a trading update reaffirming FY25 guidance and introducing guidance for FY26. Based on the current call-off plans of key customers, PWO expects lower revenues from its German site in FY26, while costs are expected to increase. This will only be partly offset by growth at its international production sites. PWO expects a revenue decline of 2% y-o-y to €500m in FY26 and a decline in EBIT margin to 2.6–3.4% (vs 4.5–5.0% in FY25). To be prepared for improving market conditions, PWO aims to avoid redundancies in Germany. We have adjusted our estimates following FY26 guidance, but still see growth potential in the longer term.

In the first nine months of 2025 (9M25), both PWO’s revenues and EBIT were higher than our expectations, with PWO reporting organic revenue growth again in Q325 of 1.5%, despite the continued weak automotive markets. PWO is benefitting from the start-up and ramp-up of new series production from contracts won in recent years and it has hardly noticed any direct impact from the import tariff situation. The company maintained its FY25 guidance and remarked that the upper half of the EBIT range is ambitious. PWO remains focused on its long-term growth potential, with the recently opened new plant in Serbia successfully ramping up. On slightly higher estimates, the average of three valuation methods points at a potential value of €35.1 per share (previously €34.6).

In H125, PWO’s revenues and EBIT margins were lower, mainly due to weak automotive markets. So far, the company has had no problems with the import tariff situation, but it has noticed a slowdown in the market. Because of this slowdown and the expected negative currency impact in H225, PWO adjusted its FY25 revenue guidance but maintained its EBIT guidance, which now also includes a positive one-off. PWO remains focused on its long-term growth potential, with continued high capex levels, the opening of its new plant in Serbia and more capacity expansions planned. On our adjusted estimates, the average of our three valuation methods points at a potential value of €34.6 per share (previously €35.0).