Fuchs: 2Q26 EBIT beats consensus by 24%; FY26 EBIT guidance raised but implies 5% downside to 2H consensus

研报英文原文证据摘录

Fuchs: 2Q26 EBIT beats consensus by 24%; FY26 EBIT guidance raised but implies 5% downside to 2H consensus

Angelina Glazova, CFA AC Europe Equity Research

(44-20) 7134-8379 23 July 2026 J P M O R G A N

angelina.glazova@jpmorgan.com

Investment Thesis, Valuation and Risks

Fuchs (Overweight; Price Target: €40.00)

Investment Thesis

We rate Fuchs, a leading global lubricants producer, OW. Given the structurally challenging

backdrop for the EU Chemicals sector in recent years, we remain selective and favor

specialty chemical companies in the sector, as we see them better placed to deliver on

earnings and cash flow in a challenging backdrop. We believe that Fuchs is another name

that fits well into this category. Fuchs is a specialty chemicals business focused on

lubricants; it is the world’s 8th largest producer with a 2% market share in a fragmented

market. Fuchs has robust FCF generation and ROIC profiles that stand out vs. peers and

should position the company well to further enhance shareholder returns. Thanks to its

strong balance sheet, Fuchs also has the firepower to strategically engage in bolt-on

acquisitions weighing on shareholder returns. Fuchs trades at ~8x/7x 2026/27E EV/

EBITDA vs. its own long-term historical multiple of ~10x, and we see upside to current

valuations of Fuchs shares given the company’s best-in-class cash generation and potential

for further shareholder returns.

Valuation

We use a 2028E EV/EBITDA multiple of 8.5x to value Fuchs, which is at a 10% discount

to the company’s own 5-year historical multiple and at a 25% discount to its 10-year

multiple. This approach is consistent with our valuation framework for the EU diversified

chemical names, where we also assume a meaningful discount vs historical multiples given