Bertrandt Aktiengesellschaft (ETR:BDT) executives said first-quarter results for fiscal 2025/2026 came in “a little bit better than expected,” pointing to stabilizing revenue versus the prior quarter, improved profitability and strong cash generation, while maintaining a cautious tone on a still-volatile market backdrop.
Quarterly results: sales stable sequentially, EBIT turns positive
CEO and CFO Markus Ruf reported first-quarter sales of EUR 234 million. That figure was down 12% year-over-year, but essentially stable compared with the prior quarter (EUR 235 million).
Cost actions and headcount reductions
Management attributed part of the improvement to an efficiency and cost optimization program. Ruf said the company’s redundancy program has reduced headcount to roughly 12,000 employees, with about 8,000 in Germany and 4,000 abroad.
In the profit and loss discussion, Ruf pointed to declines across multiple expense categories year-over-year, including personnel and other operating expenses. He said other operating expenses included a EUR 1.5 million one-off item in the first quarter. He also noted depreciation and amortization was lower, describing it as a regular decline.
The company also emphasized contributions from outside Germany. Ruf said foreign subsidiaries were positive and referenced continued development in Spain, China, Romania, and Morocco.
Balance sheet and debt: loan repaid in December
Ruf said the balance sheet totaled EUR 635 million and described changes in cash and net debt positions during the period. He noted a loan that was due in December was repaid in December, and said the company’s net financial debt was EUR 157 million, compared with EUR 179 million in the prior year, with the equity ratio at 46.4% (as cited during the presentation).
Outlook: guidance reaffirmed, stronger second half expected
Management said the economic and geopolitical environment remains “volatile and challenging,” while also pointing to what it described as initial signs of recovery in Germany toward the end of the quarter. Ruf said the company saw significantly higher order intake in Q1 and expects “normalization” of call-offs from new contracts beginning in March/April, which management expects to support a stronger second half.
Ruf also said the company expects to see the full-year benefit from cost optimization measures across the fiscal year and reiterated that customer activity around new models and technologies is supportive of Bertrandt’s engineering services. He cited new model and technology announcements across hybrid, internal combustion, and EV programs, saying new technologies and models require engineering work—particularly testing and validation.
Bertrandt confirmed its guidance, including:
- Moderate year-over-year revenue growth for the full fiscal year
- Positive EBIT for fiscal 2025/2026
- Operating cash flow significantly up year-over-year (as characterized on the call)
- A mid-term margin ambition of 6% to 9%
Ruf said he expects a particularly strong finish to the year, describing a “really strong Q4” driven by normalized call-off volumes and the full impact of the cost program.
Q&A: cash flow expectations and non-auto expansion
In the Q&A session, the company addressed questions about cash flow and non-automotive initiatives. Responding to a question about cash flow generation later in the year and into next year, Ruf said the company expects strong operating cash flow and positive free cash flow for the full fiscal year, driven by “tough working capital management” and low capital expenditures. He referenced prior-year CapEx of about EUR 9 million and said he expects similarly low CapEx this year.
Ruf also noted a typical seasonal pattern, saying Q1 is usually strong for cash flow, as is Q4, while Q2 and Q3 can be weaker.
On non-auto initiatives, Ruf said Bertrandt is working with aerospace and defense customers across Europe, naming Spain, France, Germany, and Italy. He said the company has added sales capacity due to what he described as strong demand. Ruf said current revenue in the segment is about EUR 80 million and that management sees potential to reach up to EUR 300 million over the coming years in the aerospace and defense field.
Management also noted the company plans to hold a capital markets day on May 13 near Stuttgart, with the possibility of a webcast, according to the closing remarks.
About Bertrandt Aktiengesellschaft (ETR:BDT)
Bertrandt Aktiengesellschaft provides engineering services. It operates through three segments: Digital Engineering, Physical Engineering, and Electrical Systems/Electronics. The Digital Engineering segments designs vehicle components for interior, exterior, powertrain, chassis, or body, as well as the development of complete vehicles, including numerical analysis. Its Physical Engineering segment combines all the activities related to the validation of physical components parts, components, systems, powertrains, and the vehicle.
