Dürr (AO) | Buy | Ad hoc: 2026 guidance kept, cost-cutting program in BBS automation

Research evidence excerpt

Dürr (AO) | Buy | Ad hoc: 2026 guidance kept, cost-cutting program in BBS automation

ross all key financial metrics

despite the challenges at BBS Automation. Management assumes there will be no further deterioration in macroeconomic

conditions and expects profitability to improve during the second half.

The improvement in H2 is expected to come from several sources. Automotive should benefit from stronger seasonality and a

favourable project mix. Industrial Automation should begin to see initial savings from the Vector programme while Measuring &

Process Systems continues to perform well. Woodworking should benefit from the execution of the large timber-house project,

together with cost savings from the new Polish plant. Additional benefits are also expected from group-wide administrative

restructuring.

Management acknowledged that H1 margins were held back by several one-off operating costs, particularly in Woodworking,

including ERP implementation, the Poland factory ramp-up and higher R&D spending. These costs are already incorporated into

the guidance. Free cash flow guidance remains conservative because of payment timing effects, tax-related cash outflows and

restructuring payments.

Dürr's core businesses continue to perform well, and Automotive is showing encouraging signs of recovery. The principal issue is

BBS Automation, where management is taking decisive restructuring action rather than waiting for the market to recover.

Investors are therefore asked to look through near-term restructuring charges towards improved profitability from 2027 onwards.

The fact that the company maintained its full-year guidance despite these headwinds suggests management remains confident

that stronger H2 execution and cost savings will offset current weakness.