The Climb Towards Profitable Electric Mobility for Schaeffler
E-Mobility's growth trajectory persists, according to Schaeffler. - Electrical mobility taking the route, as per Schaeffler's prediction
Schaeffler, a leading global automotive and industrial supplier, has reported robust sales growth in the electric mobility (E-Mobility) sector, despite ongoing difficulties. However, the division is still in the red. In the first quarter of 2025, the E-Mobility segment expanded by 7.8 percent to virtually 1.2 billion euros, yet a pre-tax loss of 268 million euros was recorded[4].
With a hefty order volume of three billion euros in the first quarter, auction giant Schaeffler is poised to meet its full-year target for the E-Mobility sector. Yet, the forecast suggests continued losses for the division[3]. The company's overall earnings likewise took a hit, with sales decreasing by 3.5 percent year-on-year to 5.9 billion euros and pre-tax earnings before interest and special items dropping from 287 million euros in the previous year's quarter to 276 million euros. "Our operating landscape remains precarious and uncertain," said CEO Klaus Rosenberg[4].
Schaeffler's dependence on the Chinese market has lessened due to the acquisition of electric drive specialist Vitesco[4]. Nevertheless, uncertainties persist across the pond. "We're working to mitigate tariffs, and we'll do so tactfully," Rosenberg stated[4].
In 2024, the E-Mobility segment's poor financial performance resulted in significant losses, with an EBIT margin of -22.1% for the entire year[4]. Schaeffler is determined to bring the E-Mobility division to a profitable state as expeditiously as possible. While anticipating a negative result before special items for this division in 2025, the company is committed to sustainability and profitability. The consolidation of Vitesco Technologies, which began in October 2024, is predicted to spur long-term synergy potential[1].
The company generally projects revenue of between €23 to €25 billion for 2025 across all divisions, though specific expectations for the E-Mobility segment have not been provided[2]. Schaeffler expects up to €600 million in synergy potential from strategic moves, including the Vitesco integration[1]. However, the segment continues to face challenges from evolving market dynamics and external factors such as tariffs and trade disputes[1].
In summary, Schaeffler's E-Mobility segment is moving forward amidst obstacles, with the company dedicated to improving profitability while harnessing strategic integrations to foster future growth.
- Despite the growth in the E-Mobility sector, Schaeffler's E-Mobility division is still incurring losses, with a pre-tax loss of 268 million euros recorded in Q1 of 2025.
- Schaeffler, despite facing challenges from tariffs and trade disputes, is working diligently to mitigate these issues tactfully, as stated by CEO Klaus Rosenberg.
- In a bid to boost profitability in the E-Mobility segment, Schaeffler has begun the consolidation of electric drive specialist Vitesco Technologies, which the company expects to spur long-term synergy potential.
