MarketBeat

Mon, August 3, 2026 at 6:02 AM EDT 6 min read

Key Points

• Interested in Stabilus SE? Here are five stocks we like better.

• Third-quarter performance: Revenue fell approximately 4%–4.5% year over year to nearly €300 million, but adjusted EBIT margin improved to 10.8% from 10.5%, supported by efficiency measures and stronger industrial operations.

• Deleveraging and outlook: The €92 million sale of Tech Products and Fabreeka reduced total debt to €554 million and net leverage to 2.77 times. Stabilus maintained fiscal-year guidance for roughly €1.15 billion in revenue, an adjusted EBIT margin around 10% or slightly above, and approximately €90 million in free cash flow.

• Industrial growth offsets weakness: Industrial revenue grew organically by more than 8%, including 35% growth in aerospace, marine, rail and defense, while automotive declined about 15% and Asia-Pacific revenue fell 18% amid China-related weakness and pricing pressure. The company also expects initial low-single-digit million-euro revenue from humanoid-robot actuators next year through its Synapticon partnership.

Stabilus (ETR:STM) said third-quarter revenue was close to €300 million and adjusted EBIT margin improved to 10.8%, despite lower sales tied largely to weakness in China and continued pressure in automotive markets.

The company said revenue was approximately 4% to 4.5% below the prior-year quarter, while adjusted EBIT margin rose from 10.5% a year earlier. Management attributed the margin improvement to efficiency programs and a larger contribution from its industrial operations.

Portfolio sale supports deleveraging

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Stabilus completed the sale of its Tech Products and Fabreeka businesses to VMC Group, with signing on May 7 and closing on June 23, 2026. The transaction had an enterprise value of €92 million.

Management said the businesses had been successful assets, with margins in the range of 30%, but were not a close fit with Stabilus' strategy of focusing on electromechanical systems, intelligent motion control and automation. The divested operations primarily supplied vibration-management and mechanical-motion components, including rubber and plastic mounts.

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The company used proceeds from the sale to reduce debt. Total debt declined to €554 million from €631 million, while net leverage fell to 2.77 times. Stabilus also renegotiated its debt covenants, increasing its maximum leverage ratio to 4.0 for fiscal 2026 and 3.9 throughout 2027, compared with a previous maximum of 3.5.