Schaeffler AG: Recent Developments and Financial Outlook

Schaeffler AG, a German automotive and industrial supplier listed on Xetra, reported a series of operational and financial events in the first week of November 2025. The company’s share price closed at €6.835 on 5 November, below its 52‑week low of €3.154 but near the high of €7.15 reached on 29 October. With a market capitalisation of approximately €6.65 billion, the firm trades at a price‑earnings ratio of –7.35, reflecting recent losses.

1. Quarterly Performance

In the third quarter of 2025, Schaeffler posted a net loss of €287 million. The loss increase was primarily attributed to write‑downs arising from a software transition. This decline contributed to a broader negative trend in the company’s earnings, prompting several analysts to downgrade or neutralise their ratings.

  • UBS issued a “Neutral” outlook on 4 November, citing the quarterly loss and the impact of the software‑related write‑downs. At the time of the announcement, the share price was down 3.87 % to €6.70 on Tradegate.
  • Wallstreet‑Online and Finanznachrichten.de reported similar figures, underscoring the magnitude of the write‑downs and the resulting erosion of profitability.

2. Strategic Divestiture in China

Schaeffler announced the divestment of its turbocharger business in China to Chengdu Xiling. The sale was completed following the company’s merger with drivetrain specialist Vitesco and aligns with a strategy to shed non‑core assets. The transaction was reported by Yahoo Finance and local German outlets (Stuttgarter Zeitung, Infranken). This move is expected to streamline operations and improve focus on high‑margin segments.

3. Capital Markets Activity

  • Bond Issuance: On 5 November, Schaeffler disclosed plans for a €500 million bond offering. The proceeds are intended for stabilization purposes, potentially to offset the impact of recent write‑downs and support liquidity.
  • Research Coverage: Multiple research notes, including those from Quirin Privatbank and EQS News, issued buy recommendations on 6 November. The notes highlight Schaeffler’s ongoing projects in humanoid robotics and potential upside from strategic partnerships.

4. Technological Partnerships

Schaeffler partnered with Neura Robotics on 5 November to advance humanoid robot technology. The collaboration focuses on artificial intelligence, robust robotic arms, and large‑scale orders. Additionally, a technology partnership with Neura Robotics was announced on 11 November via evertiq.de, positioning Schaeffler as a key player in the emerging humanoid robotics sector.

5. Operational Highlights

  • E‑Motor Repairs: An article on 5 November (autoservicepraxis.de) detailed Schaeffler’s capability to repair electric motors, underscoring the company’s expertise in electric vehicle components.
  • Software Transition Impact: The write‑downs related to a software upgrade were repeatedly cited across news reports, indicating that the transition affected asset valuations and led to a temporary dip in earnings.

6. Market Sentiment and Analyst Outlook

Despite the negative earnings and recent asset write‑downs, analysts from Quirin Privatbank and other research houses maintained a positive stance, citing ongoing technological initiatives and strategic divestitures as potential catalysts for future growth. However, the negative price‑earnings ratio and current share price trajectory suggest cautious optimism among investors.

The combination of divestiture in China, a significant bond offering, and renewed focus on humanoid robotics positions Schaeffler AG at a crossroads. While current financial results reflect short‑term challenges, the company’s strategic initiatives aim to strengthen its core competencies and prepare it for the evolving automotive and industrial landscape.