Wacker Neuson (ETR:WAC) reported full-year 2025 revenue of EUR 2.2 billion, essentially flat year over year, as the company worked through a weak start to the year and a gradual recovery from the downturn seen in 2024. Management said low capacity utilization weighed on the first quarter, but operating momentum improved from the second quarter onward.
Chief Executive Officer Karl Tragl said order intake in 2025 was “slightly above revenue,” resulting in a book-to-bill ratio above 1 for the year. The group posted earnings before interest and taxes (EBIT) of EUR 132 million, equating to an EBIT margin of 6.0%. Tragl noted the margin improved by 0.5 percentage points compared with 2024, but was held back by one-time effects in the fourth quarter, including legal and advisory costs tied to takeover talks, adjustments to the virtual stock option plan, and certain asset impairments.
Segment performance: mixed equipment trends, services growth
- Light equipment revenue increased 2% to EUR 460 million.
- Compact equipment revenue declined 2% to EUR 1.26 billion, as demand for telehandlers in Europe and skid steers in the U.S. lagged, partly offset by continued growth in demand for dumpers and excavators in Europe.
- Services revenue rose to EUR 521 million, representing 23% of total revenue. Management attributed this to strong spare parts and used-machine demand and improved service levels supported by a new logistics hub in Mühlheim-Kärlich.
Regional results: Europe steady, Americas and Australia weaker
Europe remained the company’s largest market, accounting for 79% of group revenue. European revenue rose 1% to EUR 1.75 billion, with management citing weaker performance in Germany and France and growth in the U.K. and Switzerland. Tragl also said the Kramer and Weidemann brands, which focus on agriculture, “regained momentum late in the year.”
In the Americas, revenue declined 7% to EUR 422 million, which management said was “heavily impacted by customer reluctance and U.S. tariffs.” Asia-Pacific revenue fell 16% to EUR 44 million, driven primarily by a slowdown in Australia.
Cash flow, balance sheet, and dividend proposal
Chief Financial Officer Christoph Burkhard highlighted a reduction in net working capital to 29.2%, below the company’s strategic target of 30% and faster than originally forecast. He said the improvement was driven by higher trade payables in preparation for 2026, disciplined inventory management despite complexities from the U.S. tariff situation, and lower receivables. Burkhard also pointed to efforts to improve integrated system-based planning processes across the group, from sales forecasting through logistics and production planning.
The company reported free cash flow of EUR 202 million in 2025, up from EUR 185 million in the prior year, supported by operating cash flow and working capital improvement. Burkhard said net debt fell to EUR 185 million, the lowest level since the first quarter of 2022, representing a reduction of more than 40% year over year. He also cited an equity ratio of 62%.
Wacker Neuson said it will propose a dividend of EUR 0.70 per share at its annual general meeting on May 13 in Munich. Burkhard said the proposal implies a payout ratio of around 61% of earnings per share and a dividend yield of 2.9% based on the 2025 year-end share price.
Operational milestones and product strategy
Management highlighted several operational developments in 2025, including Kramer’s 100th anniversary and the introduction of a revised machine design, as well as the launch of new wheel loaders and a new telehandler. The company also referenced trade fair participation at bauma and Agritechnica, noting “significant order intake” at those events. Tragl added that Wacker Neuson hosted a pre-launch event in September to present new products to key customers ahead of 2026.
The company said it successfully began delivering the first excavators for John Deere from Linz in 2025. Tragl also said Wacker Neuson completed a production line at its U.S. plant for additional models, enabling manufacturing there to start in 2026.
On product development, management said the group expanded its zero-emission portfolio with additional fully electric excavators, battery-powered wheel loaders, and electric light equipment solutions. The company also introduced new digital offerings, including Wacker Neuson and Weidemann apps intended to provide customers with deeper product insight and support through the machine lifecycle.
2026 guidance: moderate growth, margin expansion, and strategy review
Looking to 2026, Tragl said the macro and geopolitical environment remains volatile, citing subdued investment momentum, trade conflicts, and increased protectionism. He also referenced “the war in Middle East since beginning of March” as an added complication for energy markets and supply chains. Even so, management said indicators point to a moderate recovery, though slower than previously expected.
For 2026, Wacker Neuson guided for revenue between EUR 2.2 billion and EUR 2.4 billion and an EBIT margin in the range of 6.5% to 7.5%. The company plans capital expenditures of EUR 70 million to EUR 90 million and reiterated its goal to keep net working capital below 30% by the end of 2026.
Tragl said the company expects Europe to remain challenging but stabilizing, supported by public modernization investments. In North America, the company expects solid demand related to data center construction and infrastructure projects, despite ongoing U.S. tariffs.
During the Q&A, Burkhard said early-year order intake trends in January and February pointed to a book-to-bill ratio around 1.2 to 1.3 for the group, with strong momentum in the U.S. following weak months at the end of the prior year. He said Europe was also above 1, with Germany remaining sluggish. Burkhard added the U.S. improvement was independent of the John Deere collaboration and attributed it to dealer inventory reductions and an apparent end to rental customers’ reluctance to order new equipment.
Management also addressed profitability drivers for 2026, indicating margin improvement is expected to come “rather on costs and processes” than from higher volumes. Tragl said the company will continue to pursue its Strategy 2030, but acknowledged electrification in construction and agriculture is progressing slower than originally expected. He added that the company now “rather anticipate[s]” revenue of EUR 3.5 billion by 2030, while keeping its profitability target unchanged at an EBIT margin of more than 11%.
About Wacker Neuson (ETR:WAC)
Wacker Neuson SE manufactures and distributes light and compact equipment in Germany, Austria, the United States, and internationally. It operates through three segments: Light Equipment, Compact Equipment, and Services. The company provides internal and external vibrators for concrete compaction; rammers; vibratory plates; rollers for soil compaction; demolition and light products; generators; pumps; and heaters. It also offers compact equipment, including excavators, wheel loaders, telescopic wheel loaders, skid steer loaders, telehandlers, wheel and track dumpers, and backhoe loaders, as well as related product attachments and accessories.
