(Reuters) – Schaeffler wants to double its adjusted operating profit margin target from last year’s level in 2028, the German machine and car parts maker said on Tuesday, pushing up shares.
Shares rose 3.6% at 1336 GMT after the company presented its midterm targets at a capital markets day in Frankfurt.
The company expects its adjusted earnings before interest and taxes (EBIT) margin to reach between 6% and 8%, compared with 3.5% in 2024, supported by a break-even at its E-Mobility division.
The company also targets sales of 27 billion to 29 billion euros ($31.9-$34.2 billion).
Key to these targets is the planned profit turnaround in the E-Mobility division, which has been deeply in the red.
The division is expected to significantly increase revenue to between 8.25 billion and 9 billion euros in the next three years, from 4.8 billion euros in 2024.
By then, it is also expected to no longer report losses before interest and taxes (EBIT).
CEO Klaus Rosenfeld said Schaeffler expected up to 10% of group sales in 2035 to come from sectors the company has been actively exploring, including defence, electric vertical take-off and landing (eVTOL) aircraft and humanoids.
In 2024, these sectors brought in 1% of group sales.
The company plans to have an even more diversified business portfolio, Rosenfeld added.
($1 = 0.8471 euros)
(Reporting by Amir Orusov; additional reporting by Alexander Huebner; Editing by Ludwig Burger and Miranda Murray)
