JOST Werke (ETR:JST) raised its 2026 outlook after reporting higher third-quarter sales and adjusted operating profit, as growth across its regions and integration synergies offset higher freight and material costs.
The company reported third-quarter sales of EUR 426 million, up more than 11% from a year earlier, while adjusted earnings before interest and taxes, or EBIT, rose 12% to nearly EUR 42 million. The adjusted EBIT margin increased by 0.1 percentage point to 9.8%.
For the first nine months, sales rose 12% to EUR 1.284 billion and adjusted EBIT increased 18% to EUR 130 million. The adjusted EBIT margin improved to 10.1% from 9.6% a year earlier.
Chief Executive Officer Joachim Dürr said cost synergies more than offset the third-quarter increases in freight and material expenses. Organic sales growth was 9% in both the third quarter and the nine-month period.
Raised outlook and 2027 expectations
JOST now expects 2026 sales to rise 9% to 11% from EUR 1.534 billion in 2025. It forecasts adjusted EBIT growth of 11% to 14% from last year’s EUR 145 million, with an adjusted EBIT margin of 9.5% to 9.9%.
Chief Financial Officer Oliver Gantzert said the pace of any slowdown in China’s export economy would be an important factor in determining where results land within the guidance range. He said October sales from China remained strong, although the company had seen initial signs of normalization.
Looking ahead to 2027, Gantzert said JOST expected sales growth even after the planned disposal of its Indian tipper body business. He anticipated strong growth in the Americas and solid growth in Europe, the Middle East and Africa, while China could be relatively flat. Dürr said the company also expected continued market growth in India.
Americas lead quarterly profit growth
In the Americas, third-quarter sales rose almost 20% to EUR 127 million, or approximately 15% excluding currency effects. Adjusted EBIT increased to more than EUR 18 million from EUR 10.9 million, and the regional margin rose to 14.5%.
Gantzert attributed the improvement to stronger factory utilization in the transport business, cross-selling synergies from the Hyva integration and a smaller benefit from a change in how some sales are routed between regions.
Dürr said North American Class 8 truck production rose 54% in the third quarter from a year earlier, benefiting JOST’s fifth wheel business. He attributed the increase partly to purchases ahead of anticipated emissions-related costs and to pent-up demand after lower build rates during a period of tariff uncertainty.
Some truck manufacturers face component supply constraints that may prevent them from fulfilling all planned production, Dürr said. He added that JOST remained ready to support them.
In Europe, the Middle East and Africa, third-quarter sales rose 2.5% to EUR 187 million, but adjusted EBIT fell to EUR 7.1 million from EUR 11.4 million. The margin declined to 3.8% from 6.3%, reflecting higher freight and input costs, temporary inefficiencies from a site closure and the rerouting of some profitable sales to other regions, Gantzert said.
Asia-Pacific sales rose almost 19% on a reported basis and 15% organically. Adjusted EBIT increased to EUR 14.9 million from EUR 13.9 million, although the margin fell to 13.2% from 14.7%. Gantzert said strong Indian hydraulics demand required imports from China, adding freight costs and import duties until local capacity can be expanded.
Cost recovery and cash flow
Dürr said transport-industry contracts with major original equipment manufacturers typically allow cost-related price adjustments after three to six months. JOST expects the first effects in its first-quarter 2027 results and potentially the full effect in the second quarter.
Gantzert said the European site closure, Indian import costs and inflation were weighing on fourth-quarter performance, but he did not expect those issues to persist through 2027.
Free cash flow was EUR 7 million in the third quarter and EUR 23 million for the first nine months. Gantzert said working capital had risen primarily because of growth and project ramp-ups, with safety stocks also contributing. He expects some working capital reduction in the fourth quarter but said cash conversion would not match the unusually high level achieved last year.
Net debt stood at EUR 381 million, equivalent to leverage of 1.78 times. Adjusted net income for the first nine months rose to EUR 74 million from EUR 64 million, despite a EUR 3.8 million one-off tax expense from an Asian tax audit settlement.
Portfolio changes
JOST acquired the remaining 25% of Brazilian sanitation equipment company Usimeca for approximately EUR 17 million, effective Oct. 15, after the seller exercised a put option. Gantzert said Usimeca operates at an EBIT margin above 14% and that the purchase would immediately add to earnings per share.
The company also signed an agreement to sell its Indian tipper body business to Belrise. Gantzert described the business as low-margin and working-capital-intensive, and said the sale would allow JOST to focus on cylinders and hydraulics in India. He expects the transaction to close by year-end but said it could slip into the first weeks of 2027.
About JOST Werke (ETR:JST)
JOST Werke SE manufactures and supplies safety-critical systems for the commercial vehicle industry. The company offers truck and trailer components, including sensor systems and lubetonic systems, fifth wheel couplings and mounting plates, dual-height fifth wheel systems, sliders, king pins, ball bearing turntables and slewing rings, landing gears, and hubodometers and axle caps; container equipment, such as components for intermodal transports, twist locks, bolsters, airbag lifting devices, and spare wheel holders; and axle systems and its spare parts.
