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1. Company Snapshot

1.a. Company Description

ElringKlinger AG develops, manufactures, and sells systems and components for the automotive industry in Germany, the Asia-Pacific, North America, rest of Europe, and internationally.It operates through four segments: Original Equipment, Aftermarket, Engineered Plastics, and Other.The Original Equipment segment is involved in the development, manufacture, and sale of products and assemblies, such as metal sealing systems and drive train components; thermoplastics for drivetrains, body, and underbody applications; hybrid technologies; thermal, acoustic, and aerodynamic shielding systems; cylinder-head and specialty gaskets; battery and fuel cell components and systems; electric drive units; and exhaust gas purification.


This segment serves passenger car and commercial vehicle sectors.The Aftermarket segment offers a range of gaskets, gasket sets, and service parts for the repair of engines, transmissions, exhaust systems, and auxiliary units in cars and commercial vehicles under the Elring – Das Original brand.This segment serves a network of wholesalers and purchasing organizations.


The Engineered Plastics segment develops, manufactures, and markets customized products made from various plastics for the mechanical engineering sector, as well as in medical, chemical, energy, and vehicle industries.The Other segment operates engine test benches and measuring equipment for testing engines, transmissions, and exhaust systems for vehicle manufacturers and automotive suppliers; and offers logistics and catering services.ElringKlinger AG was founded in 1879 and is headquartered in Dettingen an der Erms, Germany.

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1.b. Last Insights on ZIL2

ElringKlinger AG's recent performance was negatively impacted by a significant decline in earnings, with the company reporting a €0.15 loss per share in Q2 2025, compared to a €0.15 profit in the same period last year. This downturn was likely a key factor in the company's recent struggles. Additionally, the current business conditions and market sentiment may be affecting the company's performance. The second-quarter report was recently analyzed by financial statement experts.

1.c. Company Highlights

2. Disappointing Q3 Earnings, But Progress on SHAPE30 Strategy

The company's Q3 2025 financial performance was mixed, with revenue declining by 10% to EUR 392 million, but organic revenue decline was limited to 0.6%. Adjusted EBITDA margin was 10.5%, down from 12.4% in Q3 2024, resulting in an adjusted EBITDA of EUR 41.1 million. Adjusted EBIT margin was 5.4%, above the full-year target of around 5%. EPS came in at EUR 0.2107, slightly above estimates of EUR 0.21. The order backlog stood at EUR 1.1 billion at the end of Q3, providing a solid foundation for future revenue.

Publication Date: Nov -19

📋 Highlights
  • Organic Order Intake Growth:: Increased by EUR 16.6 million (3.6%) to EUR 477 million, despite a 3% headline decline.
  • Adjusted EBIT Margin:: Rose to 5.4% (EUR 21.2 million) in Q3 2025, exceeding the full-year target of around 5%.
  • SHAPE30 Strategy Progress:: Includes sale of 2 companies, discontinuation of electric drive systems, and EUR 1.1 billion order backlog.
  • Restructuring Impact:: EUR 41.1 million adjusted EBITDA (vs. EUR 51.4 million prior year) with cost reductions expected to accelerate in Q4 2025–Q1 2026.
  • IFRS 16 Liability:: Rose to EUR 90 million (vs. EUR 47 million prior year), with an additional EUR 30 million expected in Q4 2025.

Strategic Progress and Outlook

The company is making progress on its SHAPE30 transformation strategy, with significant steps taken, including the sale of two companies in the U.S. and Switzerland, and a reinforced focus on profitable components. As Thomas Jessulat noted, "We are continuing the ramp-up of additional large-scale e-mobility projects." The company anticipates a weaker Q4 due to market conditions, but expects largely sideways movement on a global scale in 2026. Revenue growth is expected to pick up in 2026, with analysts estimating a 3.5% increase.

Valuation and Key Metrics

Based on the current stock price, the P/E Ratio is -1.48, indicating that the market is pricing in significant losses. The P/S Ratio is 0.15, and EV/EBITDA is 1.23, suggesting that the stock may be undervalued. The company's ROE is -25.0%, and ROIC is 3.96%, indicating that capital allocation is still a challenge. The Dividend Yield is 3.75%, providing some support to the stock price.

Future Prospects and Risks

The company's guidance for 2026 suggests a gradual improvement in profitability, driven by the SHAPE30 strategy and the ramp-up of e-mobility projects. However, there are risks to this outlook, including the potential for further market weakness and the impact of restructuring measures. The expected sale of tooling equipment will lead to a reduction in balance sheet size and an improvement in financial KPIs. The STREAMLINE program is expected to have a positive impact in the first half of 2026, assuming no negative market impact.

3. NewsRoom

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Is ElringKlinger AG (ETR:ZIL2) Trading At A 47% Discount?

Dec -02

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ElringKlinger AG (ELLRY) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

Nov -12

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Institutions own 35% of ElringKlinger AG (ETR:ZIL2) shares but individual investors control 44% of the company

Oct -31

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Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

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Sep -09

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Deutsche Bank (XTRA:DBK): Assessing Valuation After a Period of Quiet Share Price Momentum

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.68%)

6. Segments

Original Equipment

Expected Growth: 2.5%

ElringKlinger AG's Original Equipment segment growth of 2.5% is driven by increasing demand for fuel-efficient and emission-reducing technologies, rising global vehicle production, and the company's strong market position in the automotive industry. Additionally, the segment benefits from the trend towards electrification and hybridization, as well as the growing importance of sustainable mobility solutions.

Aftermarket

Expected Growth: 3.5%

ElringKlinger AG's aftermarket growth of 3.5% is driven by increasing vehicle parc, rising average vehicle age, and growing demand for replacement parts. Additionally, the company's focus on e-mobility and hybrid solutions, as well as its expansion into new markets, contribute to its growth momentum.

Engineered Plastics

Expected Growth: 2.8%

ElringKlinger's Engineered Plastics segment growth of 2.8% is driven by increasing demand for lightweight materials in the automotive industry, particularly in electric vehicles. Additionally, the company's focus on innovative products, such as battery housings and thermal management systems, contributes to its growth. Furthermore, ElringKlinger's strong relationships with major OEMs and its global production network support its expansion.

Other

Expected Growth: 2.2%

ElringKlinger AG's 2.2% growth in 'Other' segment is driven by increasing demand for e-mobility solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on lightweighting and thermal management technologies has led to increased sales in the electric vehicle sector, contributing to the segment's growth.

7. Detailed Products

Cylinder Head Gaskets

ElringKlinger AG's cylinder head gaskets are designed to provide a reliable seal between the engine block and cylinder head, ensuring optimal engine performance and reducing emissions.

Special Gaskets

ElringKlinger AG's special gaskets are custom-designed to meet specific application requirements, providing a reliable seal in demanding environments.

Shielding Technology

ElringKlinger AG's shielding technology provides electromagnetic interference (EMI) shielding solutions for the automotive and industrial markets.

Battery Systems

ElringKlinger AG's battery systems provide high-performance, customized battery solutions for electric and hybrid vehicles.

Fuel Cell Components

ElringKlinger AG's fuel cell components, including bipolar plates and seals, are designed for use in fuel cell systems.

Thermal Management Systems

ElringKlinger AG's thermal management systems provide customized cooling and heating solutions for electric and hybrid vehicles.

8. ElringKlinger AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ElringKlinger AG is moderate, as there are some alternative products available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for ElringKlinger AG is low, as the company has a diverse customer base and no single customer accounts for a significant portion of its revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ElringKlinger AG is moderate, as the company relies on a few key suppliers for its raw materials, but it also has some bargaining power due to its large scale of operations.

Threat Of New Entrants

The threat of new entrants for ElringKlinger AG is low, as the company has a strong brand presence and a large customer base, making it difficult for new entrants to gain traction in the market.

Intensity Of Rivalry

The intensity of rivalry for ElringKlinger AG is high, as the company operates in a highly competitive industry with many established players, and it needs to continuously innovate and improve its products to stay ahead of the competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.15%
Debt Cost 10.16%
Equity Weight 66.85%
Equity Cost 12.92%
WACC 12.01%
Leverage 49.58%

11. Quality Control: ElringKlinger AG passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Kendrion

A-Score: 5.4/10

Value: 7.9

Growth: 1.6

Quality: 3.6

Yield: 6.2

Momentum: 8.0

Volatility: 5.3

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Akwel

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Value: 9.0

Growth: 3.1

Quality: 4.4

Yield: 6.2

Momentum: 4.0

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Plastic Omnium

A-Score: 4.8/10

Value: 8.4

Growth: 4.3

Quality: 2.6

Yield: 6.9

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ElringKlinger

A-Score: 4.6/10

Value: 10.0

Growth: 1.9

Quality: 3.0

Yield: 3.8

Momentum: 6.0

Volatility: 3.0

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Garrett Motion

A-Score: 4.5/10

Value: 7.1

Growth: 1.8

Quality: 5.8

Yield: 0.6

Momentum: 10.0

Volatility: 2.0

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Nokian Renkaat

A-Score: 4.4/10

Value: 8.1

Growth: 1.0

Quality: 2.6

Yield: 8.1

Momentum: 3.0

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.03$

Current Price

4.03$

Potential

-0.00%

Expected Cash-Flows