The lubricant manufacturer reported higher sales and earnings, citing customer pre-buying related to the Middle East conflict, supply issues affecting some competitors and broad-based organic growth.

FUCHS reported higher first-half sales and earnings and raised its 2026 profit outlook after a strong second quarter. Sales increased 11% to €2.003 billion during the first half, compared with €1.804 billion a year earlier, while earnings before interest and taxes rose 24% to €260 million from €209 million. The EBIT margin increased to 13.0% from 11.6%.

The company attributed the improvement to growth across all three of its operating regions. FUCHS said second-quarter results also benefited from customer pre-buying related to the conflict in the Middle East and supply issues affecting some competitors. It did not identify the competitors or specify which products or markets were involved.

Supply Conditions Support Demand

FUCHS said its global production and procurement network helped it maintain supply during a period of restricted shipping routes, damage to local supply infrastructure and tight availability of certain base oils. Chairman Stefan Fuchs said the company’s production network, procurement capabilities and product-development resources enabled it to continue supplying customers in a challenging market.

The company said some base oils remain severely constrained and have risen significantly in price. It expects supply conditions to remain tight in the coming months. Its comments indicate that uneven product availability is influencing purchasing behavior, with some customers building inventories or shifting purchases to suppliers able to maintain supply.

Sales increased across all three of the company’s operating regions during the first half. Sales in Europe, the Middle East and Africa rose 11% to €1.156 billion. Asia-Pacific sales increased 12% to €567 million, while sales in North and South America rose 7% to €376 million despite negative currency effects. FUCHS said organic growth in the Americas was driven primarily by higher volumes in North America, with South America also improving from the prior-year period.

Outlook Raised

FUCHS raised its full-year EBIT outlook to between €460 million and €480 million, up from its previous forecast of approximately €450 million. The company continues to expect sales significantly above €3.7 billion.

The company cautioned that customer pre-buying that supported second-quarter volumes could weigh on demand during the second half. It also said rising raw-material costs could pressure margins as those increases move through the business.

Free cash flow before acquisitions declined to €61 million from €81 million, which FUCHS attributed primarily to higher working capital associated with increased purchase and selling prices.