GEA Group AG Q2‘26 first take: In-line with pre-announcement - headline beat but mixed segment results

Research evidence excerpt

J P M O R G A N

Europe Equity Research

10 August 2026

GEA Group AG

Q2’26 first take: In-line with pre-announcement headline beat but mixed segment results

Neutral

G1AG.DE, G1A GR

Price (07 Aug 26):€63.75

Price Target (Dec-27):€64.50

Our Take: GEA Group reported Q2 results in-line with the pre-announcement on

July 21, where the company also raised its FY2026 outlook on both growth and

margin; therefore, we focus on the incrementals today. The 7% beat on orders

reported earlier (vs. JPMe) came from PFP and NPE while orders for PFA and FT

missed our expectations. The beat on EBITDA margin margin was mainly driven

by >250bps higher than expected margin in PFA, supported by NPE, while FT

missed our and consensus expectations and PFP was largely in-line with JPMe but

modestly below consensus. Overall, once again, while the group performance is

solid, the segment results are mixed. Company-defined FCF rose significantly to

€151mn, reaching the highest level for a Q2 since 2020, vs. €38mn a year ago and

€-190.3mn in Q1. This translates into H1 FCF of -€39.3mn vs. -€10mn a year ago.

The company announced €500mn buyback last week, which reduces the scope for

any large M&A in the near term. We expect the stock to trade in-line today.

European Capital Goods

Specialist Sales contact details:

Noteworthy Areas: Please see Table 1 for details. Q2’26 orders were preannounced and were +15.4% y/y on an organic basis, with two large orders

(>€15mn) booked in the quarter (Q2’25: no large orders). Book-to-bill came

in at 1.04x which was slightly ahead of JPMe/consensus at 1.03x. GEA noted

that the H1 order growth was driven mainly by Dairy Processing, Dairy

Farming as well as Distribution & Storage and Marine, while the Beverage,

Oil & Gas and New Food industries posted declines. Net sales (pre-announced)

came in 6%/5% ahead of JPMe/consensus, organic sales growth of 11.0% was

above +5.2% JPMe and +6.3% consensus. Share of service in revenues was

down sequentially at 39.6% in Q2’26 (Q1’26: 41.2%) and down ~50bps y/y

(40.1% in Q2’25). Margins beat consensus in NPE (Nutrition Plant

Engineering) and PFA (Pharma Food Applications), while they missed in FT

…