Stabilus SE reported free cash flow of €22.1 million for Q1 fiscal 2026, tripling from €6.9 million a year earlier. This surge came despite a 10.7% revenue decline to €291.1 million and a 43.4% drop in profit. The German motion control solutions provider managed cash efficiently through working capital improvements.

The cash flow improvement stems from a €25.2 million reduction in trade receivables and an €8.6 million positive inventory effect. Regional performance was mixed: the EMEA region saw adjusted EBIT rise 19.6% to €13.4 million, while the Americas and APAC regions faced steep profit declines due to tariffs and organic revenue drops.

Stabilus maintained its full-year guidance, projecting revenue between €1.10 billion and €1.30 billion. Investors will watch how its transformation program, launched in September 2025, offsets ongoing challenges in key markets like APAC, where revenue fell 30.6%.