Wacker Neuson (ETR:WAC) reported higher revenue, profitability and free cash flow in the first half of 2026, supported by growth in Europe and the Americas and continued cost discipline. The company raised its full-year revenue and EBIT-margin guidance, while cautioning that order momentum weakened during the second quarter and that geopolitical and macroeconomic risks remain.
Group revenue rose 17% year over year to EUR 1.26 billion in the first six months of 2026. Revenue totaled EUR 591 million in the first quarter and increased to EUR 665 million in the second quarter, according to Chief Executive Officer Karl Tragl.
Regional and Segment Performance
Europe remained the company’s largest market and recorded significant revenue growth, aided by a recovery in core markets, increased volumes and improved use of production capacity. Tragl said demand in France and the U.K. increased in the mid-double-digit percentage range from a year earlier, while the DACH region also improved. Southern Europe grew, led by Spain, Italy and Portugal.
Revenue in the Americas also increased strongly, with positive development in the U.S., Canada and large parts of Latin America. The company said its priorities in the region include preparing for the future ramp-up of its John Deere cooperation and expanding its local footprint.
Asia-Pacific was the exception, as revenue declined slightly due to weak demand. During the question-and-answer session, CFO Christoph Burkhard said an allowance in the region related to a dealer insolvency in Australia. He said the dealer had expanded too aggressively during 2024 and 2025, while Australia is currently a depressed market.
Compact Equipment, which represented 59% of group revenue, was the fastest-growing segment. First-half segment revenue rose 26% to EUR 743 million, driven in part by strong order intake late in 2025 and during the first quarter of 2026. Demand was particularly strong for excavators and dumpers, while sales of telehandlers and wheel loaders increased in Europe. However, North American demand for skid steers remained below the prior-year level.
Light Equipment revenue increased 9% to EUR 260 million, representing 20% of group revenue. The growth was primarily driven by North America, including higher demand for compaction, concrete and work-site technology. Tragl highlighted demand for light towers and generators connected to construction activity at AI data centers.
Services, which accounted for 21% of revenue, recovered in the second quarter after a slow start to the year. First-half Services revenue rose 3% to EUR 263 million, supported by demand for spare parts, rental machines, maintenance and repair services.
Cash Flow and Working Capital
The company’s net working capital ratio was 28.7% at the end of June, down 4.1 percentage points from the prior-year level. Burkhard said the reduction was achieved despite revenue growth, pointing to improvements in the company’s sales-and-operations-planning process.
Inventories rose to EUR 647 million in the first quarter but declined by EUR 44 million by the end of the second quarter. Trade receivables and payables both increased in line with higher purchasing activity at plants and stronger first-half demand.
Free cash flow was EUR 78 million in the second quarter and EUR 76 million for the first half, compared with EUR 68 million in the first half of 2025. Burkhard said he expects a triple-digit free-cash-flow figure for the full year. Net financial debt stood at EUR 173 million at the end of June, down 42% year over year, while leverage reached 0.5, its lowest level since the first quarter of 2022.
Guidance Raised, Though Outlook Remains Cautious
Wacker Neuson raised its 2026 revenue outlook to a range of EUR 2.3 billion to EUR 2.4 billion, from its prior range of EUR 2.2 billion to EUR 2.4 billion. It also increased its EBIT-margin outlook by 50 basis points to 7.0% to 8.0%, compared with the previous 6.5% to 7.5% range.
Management said it remains cautiously optimistic for the second half, but expects it to be less strong than the first six months. Order intake exceeded revenue in the first half, producing a book-to-bill ratio of 1.1 as of June year to date, although order momentum weakened noticeably in the second quarter, especially in Europe.
Tragl cited risks associated with the Middle East war and U.S. tariff policies. He also said higher transportation costs, some energy-cost increases and supply-chain pressure could affect input costs in the second half. The company raised prices in North America in response to tariffs and increased pricing in Europe, particularly for spare parts, during 2026 to offset potential material-cost effects.
Capital expenditures are still expected to range from EUR 70 million to EUR 90 million for the full year, with a higher investment volume anticipated in the second half. Management expects the net working capital ratio to remain below its strategic target of 30%.
Separately, Tragl said the call was Burkhard’s final earnings call as Wacker Neuson’s CFO, thanking him for his contributions over more than five years with the company.
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.
