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).

PWO Group specialises in lightweight metal components for the automotive industry, with the focus on mass production of tailor-made solutions that often have volumes of several million units per series. It has a strong 10-year track record of being profitable, except for 2020 during the COVID-19 pandemic. Despite the short-term uncertainty in automotive, including the unclear effect of global import tariffs, the long-term outlook for PWO looks very promising. The company is well positioned to outperform the automotive market by focusing on growing the number of product lines at existing customers and adding new customers, products and countries.