PWO’s H126 results reflected the subdued market conditions within automotive, with revenues declining 7.6% y-o-y and reported EBIT before currency effects 45% (we estimate the decline in normalised EBIT at 12%, supported by efficiency measures). It is encouraging that series production returned to growth when adjusted for raw material and currency effects. The market environment in automotive remains uncertain due to geopolitical unrest, volatile trade relations (with potential supply bottlenecks) and the continued high level of competition. However, PWO is pleased with the level of new business recorded in H126, with several orders already contributing in 2026. From 2027, we expect a recovery in PWO’s results fuelled by new business and improving market conditions.

Market conditions in the automotive industry remained challenging in the first quarter of 2026, due to geopolitical uncertainties, volatile supply chains and subdued demand in certain regional markets. PWO’s Q126 results reflected the continued weak automotive markets with declining revenues and profitability. As Q1 was as management expected, PWO maintained its FY26 guidance. We expect a good recovery from 2027, driven by new business volumes and continued expansion of its capacity and customer base (PWO added a major new local client in China in Q126). Our valuation methods point to a potential value per share of €31.1 while offering an attractive dividend yield of c 6%.

PWO’s FY25 results confirmed the preliminary figures, which slightly exceeded our expectations but still reflected declines in revenues and EBITDA. A positive surprise was the far better level of new business: €760m with a very strong €225m in Q4. The weak outlook for automotive in the short term, the geopolitical unrest and a shift of production from Germany to Eastern Europe will impact PWO’s results in 2026. From 2027 we expect a recovery in both revenues and margins, driven by improving market conditions and the contribution of new business won in recent years. The company’s valuation is relatively low while offering an attractive dividend yield of around 6%.