JOST Werke (ETR:JST) reported a record first quarter for 2026, with management citing strong organic growth, early benefits from the Hyva integration and improving profitability despite mixed global market conditions.
Chief Executive Officer Joachim Dürr said the company had a “very strong start” to the year, with quarterly sales reaching EUR 417 million, up 12% from the prior year. Organic sales rose 9%, with all regions and business lines contributing to the increase.
Adjusted EBIT climbed 23% to EUR 44 million, also a quarterly record for the group. The adjusted EBIT margin improved to 10.6%, bringing JOST back into its strategic profitability corridor of 10% to 12% earlier than management had initially expected under its integration plan.
Adjusted net income rose 17% to EUR 28 million, while adjusted earnings per share increased 12% to EUR 1.81 despite a higher share count following a 10% capital increase completed in the quarter. JOST issued 1.49 million shares at EUR 62.13 each, generating gross proceeds of about EUR 93 million.
Hyva Integration Supports Margin Recovery
Dürr said the integration of Hyva is “on track” and that synergies are ramping up. Management said those synergies, along with higher volumes and product mix, supported the company’s return to its target margin range.
Oliver, who presented the financial details during the call, said the EMEA region benefited from the integration because both JOST and Hyva have headquarter functions in the region, including research and development, IT and human resources. Cost leverage from those functions is now flowing through to EBIT, he said.
The company also inaugurated a new hydraulics plant in Brazil during the quarter, which Dürr said strengthens JOST’s regional footprint and expands capacity for planned growth in the Americas.
Regional Performance Mixed but Broadly Positive
In EMEA, organic sales grew 8.4%. Management said truck and trailer markets offered some support, while tractor, construction and hydraulics demand also improved slightly. Oliver said agriculture was the strongest business line in the region, with double-digit growth, while transport and hydraulics remained robust.
EMEA’s adjusted EBIT margin increased to 7.7% from 6.1% a year earlier, helped by product mix, the cranes divestment, integration synergies and better capacity utilization. Oliver noted that the region’s margin remains lower than other regions because of its headquarter cost burden.
In the Americas, organic sales increased 5.2% to EUR 104 million, even as North American truck and trailer markets and the tractor market remained weak. Dürr attributed the region’s outperformance largely to market share gains in agriculture, including new customers for the Brazil plant, as well as additional trailer business in North America.
The Americas adjusted EBIT margin was broadly stable at 10.6%, compared with 10.8% a year earlier. Oliver said the region saw a negative foreign exchange effect on sales, mainly from U.S. dollar weakness against the euro, as well as a slight tariff impact.
APAC delivered the strongest regional growth, with reported sales up 26% and organic growth of nearly 15%. Oliver said China had a strong start in transport, driven by export sales from Chinese customers, while India also showed strong transport growth. APAC adjusted EBIT rose to EUR 16.6 million from EUR 12.8 million, and the margin increased to 15.1% from 14.6%.
Management said mining in Indonesia was a “yellow light” within APAC, describing the segment as still healthy but weaker than other parts of the region.
Cash Flow Pressured by Inventory Build
JOST’s free cash flow was near zero in the quarter, which Oliver said was not tied to weak operating performance. Instead, he pointed to the sharp increase in business volume compared with the seasonal low in November and December, as well as selective inventory increases after the Middle East conflict intensified.
Oliver said the company established a logistics task force and built safety stocks in some areas to protect deliveries, with the focus on Far East Asia and India. He described the inventory increase as a mid-single-digit amount and said working capital of 17.5% of sales remained within the company’s target range.
Capital expenditure was EUR 10 million in the quarter, or 2.3% of sales, which management said was in line with its disciplined investment range.
Balance Sheet Strengthens After Capital Increase
JOST reduced net leverage to 1.75 times last-12-months EBITDA, placing it within its strategic target range of 1 to 2 times. Dürr said this gives the company room to become more active in pursuing mergers and acquisitions.
Oliver said last-12-months EBITDA reached EUR 204 million, the first time JOST has exceeded EUR 200 million on that measure. Net debt was nearly EUR 360 million, while the equity ratio rose to 27.4%, supported by the capital increase, reported earnings and a positive equity effect.
In response to an investor question about whether the capital increase was dilutive or value destructive, Dürr said he did not agree with that characterization, pointing to the increase in adjusted earnings per share despite the higher share count. He said the capital increase helped put JOST back in a position to pursue strategic deals.
2026 Outlook Confirmed
JOST confirmed its 2026 outlook. The company expects single-digit sales growth from the 2025 base of EUR 1.534 billion. Adjusted EBIT is expected to grow at a mid-to-high single-digit rate, outpacing sales growth, with the adjusted EBIT margin improving versus the prior year.
Dürr said the company expects slight recoveries in EMEA truck, trailer, tractor and hydraulics demand, though from low levels and subject to geopolitical conditions. In the Americas, he said Class 8 truck demand could benefit from a pre-buy effect ahead of emissions regulation changes, while trailer demand may soften if fleets prioritize truck purchases. APAC is expected to show slight growth in truck demand and stronger growth in trailers, with Chinese exports to the Global South providing support.
During the question-and-answer session, Dürr said the company currently sees no negative impact on OEM call-offs or dealer orders from the Middle East conflict, though he acknowledged higher energy and transport costs could eventually weigh on industry volumes. He also said management sees JOST at the upper end of its guidance based on the strong first quarter, while maintaining caution because of geopolitical and trade uncertainty.
Oliver said it is “definitely possible” for JOST to remain above a 10% adjusted EBIT margin for 2026 as a whole, depending on the relationship between sales growth and margin development. Management also guided to working capital of 17.5% to 18.5% of sales and capital expenditures around 2.8% of sales for the full year.
About JOST Werke (ETR:JST)
JOST Werke SE manufactures and supplies safety-critical systems for the commercial vehicle industry. The company offers truck and trailer components, including sensor systems and lubetonic systems, fifth wheel couplings and mounting plates, dual-height fifth wheel systems, sliders, king pins, ball bearing turntables and slewing rings, landing gears, and hubodometers and axle caps; container equipment, such as components for intermodal transports, twist locks, bolsters, airbag lifting devices, and spare wheel holders; and axle systems and its spare parts.
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