Herzogenaurach, Germany — Schaeffler AG has reported a mixed financial performance for the third quarter of 2025, highlighting ongoing challenges amid a shifting automotive market and supply chain pressures.

The company’s revenue rose slightly compared to the previous quarter, driven by robust sales in its Industrial and Automotive divisions. However, earnings before interest and taxes (EBIT) fell short of expectations due to higher raw material costs and investments in research and development. Schaeffler’s leadership emphasized the importance of adapting to the ongoing transition in the automotive sector, particularly the shift toward electric vehicles.

In a call with analysts, the company’s executives expressed cautious optimism about future prospects, attributing some growth to increased demand for electric drive systems. Schaeffler is deepening its focus on innovation as part of a broader strategy aimed at sustainable growth. The firm anticipates that global shifts towards decarbonization will provide long-term opportunities despite current economic fluctuations.

The company is also navigating significant supply chain challenges. While it has managed to secure some of its critical components, delays and disruptions continue to hamper production schedules. Executives underscored the importance of operational agility in mitigating risks associated with these supply chain complexities.

Schaeffler’s investment in technology and process improvements aims to maintain competitive advantages. The company has dedicated substantial resources to enhance automation in its manufacturing processes, which is expected to boost efficiency and reduce dependency on labor, particularly in regions facing workforce shortages.

Furthermore, Schaeffler is intensifying its efforts to expand its footprint in emerging markets. These regions are expected to play a crucial role in driving future revenue as they undergo industrial transitions and infrastructure developments.

Analysts believe Schaeffler’s commitment to innovation will be critical in maintaining its market position amid intensifying competition. The company is expected to refine its strategies in response to evolving consumer preferences and regulatory changes aimed at reducing emissions.

As Schaeffler prepares for the remainder of the year, the company remains focused on balancing short-term challenges while fostering long-term growth through strategic investment and innovation. The outlook remains cautious, with executives stressing the need for adaptability in an unpredictable market.

In summary, while Schaeffler AG faces significant hurdles moving forward, its proactive approach and strong emphasis on technology position it to capitalize on future market opportunities. The company’s ability to navigate current challenges will likely be a defining factor in its overall performance as the automotive industry evolves.