Transcript: Aumovio SE – Q2 2026 Investor & Analyst Call Q&A session
Date: August 06, 2026
Lutz Ackermann: Yeah. Hello, everybody, again. And, welcome to our Q&A session, which we
have now. First of all, as Daniel just said from EQS, we have to apologize for the technical
issues this morning. The provider had some technical problems that are hopefully solved now.
And as we switch the format here in this to this tool, we now hope that we can go into the Q&A
session without any interferences. Maybe, Mr. Bonk, you can, once again, say how to raise a
question. There's already a first one, but maybe once again, how that works, because I think
there have been some questions with regard to that.
Operator: Yes. You may press the Blue Live Q&A button and follow the instructions. You can
choose whether you want to take part via your browser or you can dial in with the phone number
you are shown. And please then press, type in your personal PIN number. And we have already
two questions in the queue.
Lutz Ackermann: Yeah. First question comes from Christoph and hopefully you can hear us and
Christoph, please go ahead.
Christoph Laskawi: Hey, good morning again. I hope you can hear me now. Just checking on
that. Yes, sir. Yeah. Excellent. Great. That's a good sign. So, thanks for taking my questions. I'd
like to start with the capital allocation framework and the share buyback. Obviously right now
you don't have the approval. You need that from the AGM. But once you have it, could you
please comment on if you would be willing to start with the share buyback in 27 already right
away. I mean obviously your guidance would be for free cash flow potentially close to zero as a
stated free cash flow. But you seem very confident in your cash generation also looking ahead
and you have the balance sheet to start. So, that will be the first question. Then the second one.
If you would target a tender buyback or an ongoing buyback in the market. And then as a
second question, it's potentially still a bit early for that, but could you comment on 27 just
roughly what you see in terms of sales momentum, how the phase out business and the
divestments or portfolio management would impact potentially 27. And also when you think
about the pass throughs to the OEMs, you said you reached some progress already on the
DRAM side. And I think you wanted to negotiate part of 27 already too, if you could factor that
into the comments as well. And last question will be, when can we expect an update on UX and
the final decision. If you want to sell it or keep it. Thank you.
Jutta Dönges: Okay. So, should I start with the capital allocation and then maybe Philipp, you
want to take the other two questions? Yes. Hello everybody, thank you for taking your time again
to connect a second time with us today. We really apologize and we really hope that now for the
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next 30 minutes this will work well. Christoph, thanks for the question on the capital allocation
framework and the share buyback. Exactly, first of all, we would need the AGM approval. Next
AGM is set up for or planned for May 2027. And then it really depends on our free cash flow
development in 27 and also our expectations how the overall cash flow situation will develop. As
we clearly stated, we think about the distribution or using for share buyback program, the
excess free cash flow, so after dividends, and also after potential M&A, and we will then see in
the course of next year what the outlook for this excess free cash flow would look like. The
question on what format we would choose, the open market buyback or a tender, we have not
yet decided while at the same time we think that for our situation there are lot of arguments for
going with an open market share buyback.
Christoph Laskawi: Can I ask a follow up to that, please? So just on the timing of the share
buyback. Just to be precise on this. Are you ruling out you start in 27 and you will only use the
27 cash flow in calendar year 28 to start by buying back shares? Or is 27 very much an option
to use cash and start the buyback?
Jutta Dönges: I'm actually not ruling out that we could start in 27. So, first half of 27 because of
the timing of the AGM is I can rule out. But then, in the second half of next year, it depends on
how we start into 27, how the free cash flow development will be and what else we see as a
capital needs for 2027. But it's too early obviously to really say yes or no. But I would definitely
not rule it out for 27. Is that precise enough I guess as I can be right now.
Christoph Laskawi: Yes. Thanks, that was clear.
Philipp von Hirschheydt: Okay. Then I take over. Yeah. Okay. We have, I mean, our view on
2027 is that we don't see a significant improvement in the market conditions. So, I think it's fair
to say that the markets are going, from our point of view, going to be relatively stable and not
going to grow next year. And consequently, we in Aumovio see then a similar development year
to date, but it's actually relatively early in the year to already face clear expectations towards the
next year. What we do see is, I mean, we are discussing with our customers, as I were
mentioning in the morning, intensively over the roll over of or participation of these customers
into the additional costs, where we make significant progress, which is, as you all know, in our
industry as automotive supplier always backend loaded. So that comes then like in the last
years, in the second half of the year, because you first need to record the raw material costs
and then you can discuss them. And that is then also something which we are preparing for 20
27 with our customers where we are also seeing a lot of positive momentum to deal this
situation in a strong partnership together going forward. With regards to user experience, we
always said we are in a strategy process, and we have, we are in the mid of it. And we will come
to, in a discussion in the second, a decision in the second half, exactly, exact date we are not
going to mention, but as you have seen, user experience makes a significant progress, and also
on the bottom from the bottom line and turnaround perspective. And that's then something
which we are going, as I said, going to mention of how we are going to deal with that portfolio
part in the later part of the year. Thank you. You are welcome.
Lutz Ackermann: Then the next question comes from Stephen Benhamou from Bank of
America. Steven, please go ahead.
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Stephen Benhamou: Hi. Thanks for taking my questions. I have three questions. One is a follow
up on Christoph’s question regarding capital allocations, so no more on dividends. Despite the
likely net loss in 2026, is it fair to assume a potential dividend distribution as of 2027 based on
2026 results given your strong net cash position. This is my first question. The second question
is regarding the restructuring charges. Can you please give us the date of what you what you
anticipate in terms of PNL impact and cash impact for 2026 and what's your view for 2027 as
well. And the last question is regarding Aurora. So you are mentioning that you will reach the
industrial scale from H2 2027. My question is simple. How many trucks you need to be on the
road to reach a breakeven in terms of EBIT and free cash flow? Thank you.
Jutta Dönges: Okay, I start with the questions on the capital allocation framework and the
dividends in particular. I hope that I understood the question correctly. You asked if it's fair to
assume that there will be a dividend for 26 in 27 given that we have a net cash position. This is
not what our capital allocation framework is suggesting. We say that we pay dividends from a
net income, but 30% payout ratio, around 30%, that is what we are targeting. And if there is no
net income, then there will be no dividend. I think it's also important to understand that there is a
second element, as discussed a few minutes ago, the share buybacks, and that is linked to
excess free cash flow that we are going to generate. But if there's no positive net income for 26
then we are not going to pay out a dividend, and in particular not from the net cash position
because the net cash position we want to keep because this is providing us financial flexibility
and is also a factor that is differentiating us from our competitors and is important. It is important
to keep that balance sheet strength. With regards to P&L impact, restructuring, there has been,
as you have seen, you know, a significant portion of special items affecting our earnings already
in the first half of the year. We do not give a guidance for the overall amount for special items or
restructuring related items for the full year. But what we are expecting is obviously an embedded
in our guidance, we are not guiding reported EBIT, but we are guiding something on net income
where we say that overall, at the end of the year, we are expecting an improvement compared
to what we have showed last year.
Stephen Benhamou: On this one, if you don't mind, is there any reasons to anticipate any
further restructuring as compared to what you've already recorded in H1?
Jutta Dönges: I think it's too early just being in the middle of the year to rule out that there will be
more come. However, what I can say is that for the ongoing restructuring programs, we have
built respective provisions and they are already embedded in our financials. Okay. Thank you.
Philipp von Hirschheydt: I think it's fair to mention that in automotive you will always have
smaller restructuring. But, as Jutta said, there is no big additional one we foresee. Shall I
answer the Aurora question?
Lutz Ackermann: Yeah. Please go ahead. Yeah.
Philipp von Hirschheydt: With regards to Aurora, this one is a real innovation and technical
breakthrough. I think there we all agree that, we say H2 2027 means we will most probably see
that more back end loaded and then in 2028, and then significantly ramping up then in 2029 the
amount of trucks equipped with the Aurora driver and then consequently with our hardware kit.
What we do is, we have an agreement that we sell this parts hardware as a service, so we do
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get a compensation per mile driven. So, the topic is not necessarily that we need to have, but I
mean the more trucks on the road, the more miles are driven, but first of all, what is important is
how many miles are driven. And that's something which we are, where we do foresee a
relatively fast improvement of, to the bottom line, but we are not disclosing how many trucks or
miles we need.
Lutz Ackermann: Okay. Thank you for the question. And the next question comes from Michael
Punzet from DZ Bank. Michael, please go ahead with your question.
Michael Punzet: Good afternoon. I have one question with regard to your ADAS business. My
impression is that we currently see a trend from level three down to level two plus and two plus
plus. Is that something you can confirm with regard to your order book and with regard to your
requests for projects from customers? And maybe you can give us any kind of guidance what
will be the difference of content per vehicle between level three, level two plus and two plus
plus. Thanks.
Philipp von Hirschheydt: Okay. Yeah. So, we also know that it depends significantly on the
region you are looking at. If you look into the Chinese market, you do see a significant
improvement, means level up in the market where level two, level two plus, and then also level
three is being introduced. In the European market it is actually the trend you are mentioning,
you are mentioning already that markets are less, that the technological movement from two to
two plus to three is less pronounced than in China, as the, as the local costs of course are
different, but in regards to what are the exact differences in overall content per vehicle, that very
much depends on what you actually wanting and willing to, to deploy. So that is a figure which is
very difficult to be mentioned and generalized. Okay. Thank you.
Lutz Ackermann: Okay. There are currently no further questions. Maybe as a last reminder, if
you want to ask questions, that will be time now to to go for it. Otherwise, we would come to the
end. But maybe one last chance to to raise your hand. There are no further questions. So with
this we've come. Okay. Sorry. Sorry. Yeah.
Niclas Neff: Vanessa, you can go ahead.
Vanessa Jefferies: Hey. All right. Can you hear me? Yeah. Okay. Go. Sorry. Having some issues
myself, so I sympathize. Firstly, just interested in hearing more about your level of desire to do
M&A and what focus areas you're thinking of. Obviously, it's a tough sector, but I guess there's
also a good opportunity for consolidation on your side. So just keen to hear about you know
what you're thinking about, something I didn't expect you to talk about today. And secondly, if
you could just talk a little bit more about the order book, which is obviously significantly down
year on year. I mean, I know there's delays and timing differences throughout the year. But if
you could especially speak to percentage of Chinese OEMs, which, you know, may be a little bit
lower than expected. And if you could talk about your progress there in China. And then thirdly,
obviously, you know, we know the markets changed last year since you spoke at your CMD and
your sibling company has had to come out last week and lower 2028 targets. So just wondering
do you need to have a think about the 20 to 22 billion medium term sales target? Or is that
something that you might make up with M&A?
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Lutz Ackermann: Philipp, do you want to take the first one?
Philipp von Hirschheydt: Yeah. I can take. I mean I have understood the first and the second
question. The third one I had problems I think acoustically to understand. The first one. It's very
loud. Well, just a second. We do have in terms of M&A, what we want to do in our capital
allocation strategy is to build up our operational existing business and to invest into projects
where we do see a value creation potential. That is first of all organically. The second one is
then to say, if we do see chances to extend our portfolio and to make add on acquisitions, which
creates significant value creation potential for us, then we are also willing to invest into M&A.
But there are no concrete targets and no concrete timeline to do so. That's with regards to M&A.
With regards to the order book we have had a significant order intake in our Asian region. On
the one hand side in China where we continue to have significant successes, specifically also
with Chinese OEMs, where we are basically now at three quarters of our order book, rough cuff
meanwhile, and we do see a lot of interest to work with us, not only in the local Chinese market,
but also to support the expansion and globalization activities of our Chinese OEM customers.
What we do see, and that is why we are a bit shy compared to previous year, is that we still
have with the traditional OEMs, specifically in Europe, still a lack and a delay of order intake
which we are swapping into the third or even the fourth quarter. So, there is still a robust project
and product pipeline, it is just not yet decided. And the third one I will need to, so sorry that I
have not understood. Maybe, I missed you, you can take over.
Jutta Dönges: Yeah, that was on the on the midterm targets, if I understood that correctly. Yes, I
can take that. So, I think we remain convinced that the fundamental drivers of our business are
intact. And we also all agree that the market environment is or has become more challenging.
And we remain very mindful of the overall macroeconomic and geopolitical backdrops that we
have seen in particular in the first half of this year, and that those obviously could also have
further effects going forward, and overall conditions could deteriorate further. So that's, first of all
we remain very focused on what is under our control. And second, we assess what the
implications on any midterm targets would be. We have never precisely said what we mean with
midterm. But obviously, as we are moving from capital markets further into the future, mid-term
targets have become closer. We are now starting our budgeting and planning process and will
assess the situation, and if there are any changes, also with regard to the mid-term targets
communicated previously, we will obviously communicate them. Thank you.
Niclas Neff: Thank you, Vanessa. Next one will be Jose Amundi from JP Morgan.
Jose Amundi: Thanks very much. Hopefully you can hear me. Can you hear me? Yes. Yeah.
Fantastic. Just two questions, please. As we think about 27 and 28, the opportunity is clearly
there to improve the profitability for ACM and UX. Can you describe a little bit, you know in the
planning, which actions do you have across both divisions to improve the profitability? And is it,
maybe what Philipp was mentioning also, that that update around UX, maybe I misunderstood,
but maybe there is a potentially an upcoming update on UX which could materially improve the
profitability of this division. Second will be around Q3. Short term, I think you think you should
be mindful of any negative or positive one offs we could be thinking about for Q3. Yeah, those
two. Thank you.
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Lutz Ackermann: Philipp, do you make a start here on UX and ACM next year? Profitability?
Philipp von Hirschheydt: Yeah, I can make a start. I mean we are working now, as you know,
say for quite some time on overhauling our product and project portfolio. We have also
significantly invested into disinvestments and into restructuring. So, we do see an overall
improvement of project and product profitability going forward. And lots of our restructuring
efforts are going to take real grip the next year. No, I mean we mentioned that we are going to
have 150 million less R&D, net R&D costs in 2027 versus to 2026 on top of it, on top of the 200.
We do see now that then plants are going to fall out of our portfolio. So, we have managed to
have a lot of measures taken into place which should help then in the next years to, to improve
the bottom line going forward. And as I said, on the user experience side, also there, we do see
significant improvements on the profitability side and that we are going to go into the strategic
review and the strategic decision of how to continue with user experience then in the second
half of this year, well, I mean basically somewhat beginning of fourth quarter, I assume.
Jutta Dönges: Okay. Then I take the question with regards to Q3. I think it's fair to say that Q3
has started broadly in line with our expectations. Overall market environment remains
challenging and therefore so overall visibility is a bit limited. And as also very usual, the summer
season is a bit slow. Looking ahead, I think that we can reiterate that we expect the overall
profitability perspective to be better in the second half than in the first half of this year, supported
by the ongoing execution of our structural measures as well as the typical phases when it
comes to R&D reimbursements at the end of the year, and as we explained before, the
compensation by our customers for the cost increase that we are experiencing and have said
before, we are negotiating with our customers with regards to the cost recovery and we are
seeing progress, and we expect that to see in the second half of the year. And also as Philipp
explained before, you first have to see and realize the cost before you can discuss with
customers how to and when to get it back. So, if that would only come later in the year that
would probably not be a surprise. But all in all, I think, it's important to reiterate that the
significant improved profitability that we have previously stated for the second half of the year,
that is something that we are expecting and that is also reflected in our overall guidance of the
adjusted EBIT margin, 3 to 4% for the entire year, taking into account the BMW effect.
Jose Amundi: Well, it's just, I apologize, there's my line went down in the critical moment. We
were talking about the profitability for second half, second half margins higher in the first half for
the group. Is that is that what you saw? Yes. So thank you very much. Just confirm that. Yes.
Okay. Thank you.
Niclas Neff: Thank you, Jose. Next one will be Alexandre Raverdy from Kepler Cheuvreux.
Please go ahead.
Alexandre Raverdy: Yes. Good morning. Thanks for taking the question. I would like to quickly
follow up on portfolio diversification and the non-automotive activities. In particular, I was
wondering whether you could provide an update on the potential partnership you have with
Mentee robotics, and whether you show the opportunities in humanoids. Thank you.
Lutz Ackermann: Philipp, you want to take that?
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Philipp von Hirschheydt: The question was our partnership with mobile robotics? Mentee.
Mobileye. Mentee, okay. Sorry. I was just wondering whether, since we have such a partnership.
No, but with Mentee, you know, we are working, on the the industrialization of the respective
humanoid robot. We are in intense discussions with Mentee or Mobileye and are working on it
and I mean news and new developments only going to be expected later the year. I mean it
takes still some time to refine how fast are we able to take that part over, and the necessary
feasibility is currently, as said, in the investigation. But we do make considerable steps forward
in that area. We have a dedicated team working on it and look forward to the results. Thank you.
Niclas Neff: So, there are no further questions left.
Lutz Ackermann: Okay. Thank you very much for the participation. And once again, thank you
for your time to participate in this only Q&A call. And if there are any further questions, you can
approach the IR department anytime. Now we've come to the end of the Q&A session. You may
now disconnect. Bye-bye.
Philipp von Hirschheydt: Thank you. Bye-bye.
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