EQS-Adhoc: SMT Scharf AG: Publication of preliminary results for the first nine months of 2026 and adjustment of revenue and earnings forecast for FY 2026

SMT Scharf slashes 2026 guidance after revenue and EBIT collapse.

What the company is saying

SMT Scharf AG is communicating a sharp deterioration in its financial performance, publishing preliminary nine-month 2026 results that show revenue fell to EUR 51.5 million from EUR 70.9 million a year earlier. Operating earnings (EBIT) dropped to EUR 0.0 million from EUR 2.4 million. The company attributes these declines to reduced investment activity in coal mining and tunnel logistics markets, which led to a significant drop in new systems business. Additionally, a terminated tunnel project in the Middle East triggered non-recurring charges of EUR 0.6 million in provisions. The Managing Board has responded by cutting full-year 2026 revenue guidance to EUR 75–85 million (from EUR 95–115 million) and now expects negative EBIT of EUR -0.5 million to EUR -1.5 million (previously EUR 1–2 million). The tone is direct and cautious, with management emphasizing external market weakness and one-off project impacts as the main drivers.

What the data suggests

The disclosed numbers show a severe year-over-year decline: revenue for the first nine months of 2026 is down 27% to EUR 51.5 million, and EBIT has fallen from EUR 2.4 million to break-even. The company is now forecasting a full-year revenue shortfall of at least EUR 20 million versus prior guidance, and expects to post a loss at the EBIT level, reversing its earlier profit target. The non-recurring EUR 0.6 million charge from a Middle East tunnel project termination further weighed on results. Management’s explanation—lower market investment and project cancellation—is plausible, but the absence of segment or geographic breakdowns limits deeper analysis. The guidance cut is substantial and signals ongoing operational and market headwinds.

Analysis

The announcement is factual and direct, with no evidence of exaggerated or promotional language. The company discloses a significant decline in both revenue and EBIT for the first nine months of 2026, and transparently revises its full-year guidance downward, now expecting negative EBIT. The tone is appropriately cautious, attributing the deterioration to lower market investment and a one-off project termination. Most claims are realised and supported by specific figures; forward-looking statements are limited to revised guidance and expectations for subdued customer investment. There is no attempt to inflate the company's prospects or downplay the negative results. No large capital outlay or long-dated benefit is discussed, and the execution distance for the revised outlook is immediate, covering the current financial year.

Risk flags

• ●The company faces acute market risk, as lower investment activity in coal mining and tunnel logistics has driven a significant decline in new systems business. This exposes SMT Scharf to continued revenue pressure if market conditions do not improve.
• ●Operational risk is heightened by the sudden termination of a tunnel project in the Middle East, which led to a EUR 0.6 million non-recurring charge. This event underscores the vulnerability of earnings to project-specific disruptions.
• ●Financial risk is elevated, with the company now expecting negative EBIT of up to EUR -1.5 million for 2026. This swing from previously positive guidance indicates that profitability is not assured and further losses are possible if market weakness persists.

Bottom line

SMT Scharf AG’s preliminary results and revised guidance confirm a rapid deterioration in both revenue and earnings, with management now expecting a full-year loss. The company’s narrative is credible and supported by headline figures, but lacks detailed operational or geographic breakdowns. The immediate drivers—market contraction and a one-off project loss—are clearly disclosed, but there is no evidence yet of a turnaround or mitigating actions. Investors should expect weak results in the upcoming full quarterly report and remain cautious until there is evidence of market recovery or new business wins. The most important takeaway is that SMT Scharf’s near-term outlook is negative, with profitability now out of reach for 2026.

Announcement summary

(LSE:0FWF) SMT Scharf AG has published preliminary results for the first nine months of 2026 and adjusted its revenue and earnings forecast for the full year 2026. According to preliminary figures, SMT Scharf AG generated consolidated revenue of EUR 51.5 million in the first nine months of 2026, compared to EUR 70.9 million in the same period of 2025. Operating earnings (EBIT) for the first nine months of 2026 were EUR 0.0 million, down from EUR 2.4 million in the prior-year period. The company attributed this decline primarily to lower investment activity in the coal mining and tunnel logistics markets, resulting in a significant drop in new systems business. Additionally, the unexpected termination of a tunnel project in the Middle East led to non-recurring charges of EUR 0.6 million from the recognition of provisions in the third quarter. As a result of these factors and the expectation that customer investment willingness will remain subdued in the fourth quarter, the Managing Board has revised its guidance for the 2026 financial year. The company now expects consolidated revenue of between EUR 75 million and EUR 85 million for 2026, compared to the previous guidance of EUR 95 million to EUR 115 million. EBIT is now expected to be between EUR -0.5 million and EUR -1.5 million, down from the previous forecast of EUR 1 million to EUR 2 million. SMT Scharf AG will publish its full quarterly report as of 30 September 2026 on 29 October 2026. The company is listed on the Regulated Market in Frankfurt (Prime Standard) and on the Regulated Unofficial Market in Dusseldorf, Hamburg, Hanover, Munich (m:access), Stuttgart, and Tradegate BSX.

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