Schaeffler Steams Ahead with Electrification: Q1 2025 Results
Electrified mobility continues its upward trajectory, according to Schaeffler. - Electronic Mobility Progression, as claimed by Schaeffler
Schaeffler, a top-tier global automotive supplier, isn't just keeping up with the trend—it's riding the wave of electric mobility momentum. According to Klaus Rosenberg, CEO, the company sees promising signs of progress in this sector. In the first quarter of 2025, Schaeffler collected orders worth a whopping three billion euros solely in electric mobility, setting a new record and marking the first quarter post-merger with electric drive specialist Vitesco.
Despite an ongoing competitive landscape and uncertainty, Schaeffler's electric business experienced a 7.8% surge in the first quarter, reaching 1.174 billion euros, albeit still incurring a pre-tax, pre-interest, and pre-special-items loss of 268 million euros. The company is hopeful of meeting its full-year forecast for this segment, striving towards profitability.
A Mixed Bag for the Q1 Sales
Schaeffler's overall Q1 sales took a 3.5% dive, decreasing to 5.9 billion euros, while pre-tax, pre-interest, and pre-special-items profit fell from 287 million euros in the previous year's quarter to 276 million euros. The circumstances remain perilous, Rosenberg warned.
The Decreased Dependence on China
Thanks to the acquisition of Vitesco, Schaeffler's reliance on the Chinese market has decreased, as Rosenberg stressed. Despite concerns about the situation in the USA, Schaeffler will tactfully address tariff issues to mitigate their impact.
World-Class Supplier with a Global Presence
Schaeffler is among the world's ten largest automotive suppliers. With a workforce of over 113,000 employees worldwide, Schaeffler continues to drive in the fast lane of innovation.
Insights from Enrichment Data
- Sales growth across divisions: Apart from electric mobility, some divisions such as Vehicle Lifetime Solutions and Bearings & Industrial Solutions experienced growth, with the former showing a robust 10.7% surge in sales.
- margin recovery and stability: Schaeffler demonstrated impressive margin recovery and stability across various segments, signaling efficient cost management.
- Geographical Performance: Asia/Pacific, including Greater China, posted a 5.7% increase in revenue, aiding electric mobility demands, while Europe and the Americas saw slight declines.
- Merger Impact: The merger with Vitesco Technologies appears to have positively influenced Schaeffler’s position in the electric powertrain solutions market, generating synergies and structural improvements.
- Outlook: Despite a challenging macroeconomic environment, Schaeffler remains optimistic about continued growth and margin expansion in electrification going forward.
Schaeffler is seeking to enhance its presence in the EC countries by prioritizing vocational training programs for its workforce, focusing on the expanding field of electric mobility technology. Recognizing the importance of investment in human capital, Schaeffler aims to bridge the gap between industry, finance, energy, and technology expertise within its vocational training programs.
With the rise in demand for electric powertrain solutions, Schaeffler is partnering with vocational training institutions to foster a skilled workforce that meets the needs of various EC industries, ultimately driving profitability and maintaining its competitive edge in the market.
