SMT Scharf AG cuts 2026 outlook on weak investment and canceled tunnel project
Key Facts
The adjustment came as the company expects customers’ willingness to invest to remain subdued in the fourth quarter, according to its statement. The cut reflects weaker activity in new systems business, which was affected by weak investment in coal mining and tunnel logistics markets. The company also said lower revenue put pressure on contribution margins.
The company said the revenue decline was linked in particular to weak development in new systems business. The weakness extended to coal mining and tunnel logistics markets, where lower investment constrained demand for equipment and systems. Management also noted that lower revenue reduced contribution margins, adding to pressure on operating performance. The company is therefore facing two overlapping factors: weaker activity in new business and a margin impact resulting from lower revenue volume. SMT Scharf said the fourth quarter is likely to continue to pose this challenge, as customers’ willingness to spend remains subdued.
The tunnel logistics segment highlights the importance of the year-earlier comparison: in the first nine months of 2025, its revenue rose to 11.6 million euros from 4.4 million euros in the same period of 2024, according to the company’s report for that period. The earlier report attributed the increase to progress in executing orders in the segment. This shows that the comparison base included clear growth in tunnel business, while the company now says weak investment in this market is weighing on activity. The order backlog was also 21.7 million euros on September 30, 2025, compared with 48.3 million euros on September 30, 2024. These figures place weak orders among the factors behind the decline, ahead of the release of more recent period data.
Alongside pressure on its traditional business, the company continues to expand its electric transport solutions. The nine-month report said the 19-seat personnel carrier and the 8-ton materials transport vehicle had already received MA certification in China. The company also expected to complete development and modeling of light electric vehicles for markets outside China by the end of 2026. These steps give the product portfolio a path beyond traditional mining equipment, while their future commercial impact remains unspecified in the published information. Chief Executive Longjiao Wang said the company was continuing to implement its strategy and expand its products, and that it sees attractive commercial opportunities over the medium and long term.
Wang said, "Subdued willingness to invest in the mining equipment market is weighing on our business in the short term, but we see attractive commercial prospects for the SMT Scharf Group over the medium and long term." The company said the full quarterly report covers the period ended September 30, 2026, and set October 29, 2026, as its publication date. The full report follows the revision to the annual outlook, with the fourth quarter still shaped by the company’s expectation that customers’ willingness to invest will remain weak. Its release is expected to add quarterly detail to the picture the company has presented of revenue, margins and segments. The management message disclosed combines acknowledgment of near-term market pressure with continued product expansion initiatives.