hGears Group Starts 2026 in line with expectations amid a persistently challenging environment

hGears Group Starts 2026 in line with expectations amid a persistently challenging environment

FIRST-QUARTER 2026 HIGHLIGHTS

• Consolidated revenue of EUR 23.4 million, down 6.9 % from the previous year
• The revenue increase in [e]-Mobility could not offset the decline in e-Tools and, above all, in e-Bike
• Adjusted gross profit of EUR 10.5 million; margin of 44.8 % reflects changed product mix
• Adjusted EBITDA reached EUR −0.2 million
• Free cash flow at EUR −1.2 million, cash and cash equivalents at EUR 7.6 million, and equity ratio at 28.5 %
• Forecast for 2026 confirmed

Schramberg, 12 May 2026 – The hGears Group generated consolidated revenue of EUR 23.4 million and adjusted EBITDA of EUR −0.2 million in the first quarter of 2026. During the reporting period, the market environment remained characterized by geopolitical uncertainties and the resulting strain on economic momentum. While [e]-Mobility posted year-over-year growth in Q1 2026, the e-Tools business segment remained below the prior-year level. Revenue in the e-Bike business segment remained at a low level due to persistently weak bicycle production and declined sharply year-over-year due to pull-forward effects in the prior-year period.

In the first quarter of 2026, hGears generated an adjusted gross profit of EUR 10.5 million and an adjusted gross profit margin of 44.8 %, primarily reflecting the deterioration in the product mix. The structural and efficiency measures implemented continued to have an impact, but were unable to fully offset further declining volumes as well as negative mix and currency effects, resulting in adjusted EBITDA of EUR −0.2 million, which was slightly negative but in line with expectations. Free cash flow in 1Q26 was EUR −1.2 million, compared to EUR −2.2 million in the prior year.

Net working capital, at 9.0 % of revenue, was within the targeted range of 8–10 %. The equity ratio was 28.5 %, and cash and cash equivalents amounted to EUR 7.6 million (December 2025: EUR 8.7 million).

Sven Arend, CEO of hGears:

“The results for 1Q26 were in line with expectations and thus within the guidance range. Our consistently implemented structural and efficiency measures are taking effect and stabilizing our business, as they are noticeably cushioning the impact of weaker volumes as well as negative mix and currency effects. At the same time, our focus remains on securing liquidity.”

OVERVIEW 1Q 2026 FIGURES

Please note: Figures may be rounded.

OUTLOOK

Based on current market trends and taking into account ongoing uncertainties, the Management Board expects the following for the 2026 fiscal year:

• Consolidated revenue of EUR 80 – 90 million
• Adjusted EBITDA of EUR minus 3 to 0 million
• Free cash flow of EUR minus 5 to minus 2 million

Contact

hGears AG

Christian Weiz

Brambach 38

78713 Schramberg

T: +49 (7422) 566 222

E: christian.weiz@hgears.com

About hGears

hGears is a global manufacturer of mission-critical high-precision gears and components with a strategic focus on products for e-mobility. The products include gears, shafts and other function-critical components that are used in electric drive systems for e-bikes and in electric and hybrid vehicles (EHV). In the e-bike sector, hGears AG is a leading European company in the supply of high-precision gear parts and components. The company is thus well positioned to benefit from the growing end markets for e-bikes and EHVs. hGears has three different business areas for which it develops and manufactures high-precision components: e-Bike, [e]-Mobility (primarily for premium and luxury cars, EHVs and powersports vehicles) and e-Tools.

hGears combines over 65 years of experience in highly developed machining steel processing and state-of-the-art sintered metal production. This makes it one of the few companies in the world that can offer its customers both processes. hGears works together with its customers in a “co-development” role to design components and find technologically optimal solutions to satisfy the customer’s specifications. hGears' blue-chip customer base includes several major Tier 1 suppliers and original equipment manufacturers (OEMs). The company benefits from long-standing, stable and sustainable relationships with its customers, with many key customers being supplied for more than 20 years.

hGears is headquartered in Schramberg (Germany) and operates worldwide with production facilities in Schramberg (Germany), Padua (Italy) and Suzhou (China). Visit hGears on the Internet at: www.hgears.com