SMT Scharf AG, a leading supplier of transport and logistics systems for underground mining, has revised its forecast for the 2026 financial year downward, citing persistently low investment activity in coal mining and tunnel logistics and a significant drop in new systems business. The announcement, distributed via NEWMEDIAWIRE, signals deepening pressure on mining equipment suppliers as customers delay capital spending.
Based on preliminary figures, the company reported consolidated revenue of EUR 51.5 million for the first nine months of 2026, down sharply from EUR 70.9 million in the same period of 2025. Operating earnings (EBIT) fell to EUR 0.0 million, compared with EUR 2.4 million a year earlier. The decline was driven by lower contribution margins on reduced revenue and by non-recurring charges of EUR 0.6 million related to provisions after the unexpected termination of a tunnel project in the Middle East during the third quarter.
Against this backdrop, and with customer willingness to invest expected to remain subdued in the fourth quarter, the Managing Board now expects consolidated revenue of between EUR 75 million and EUR 85 million for 2026, down from the previous guidance range of EUR 95 million to EUR 115 million. EBIT is projected to range between EUR -0.5 million and EUR -1.5 million, a stark reversal from the prior forecast of EUR 1 million to EUR 2 million. The revised outlook underscores the severity of the market downturn and its direct impact on the company’s profitability.
CEO Longjiao Wang said the company remains focused on consistently implementing its strategy and expanding its business with an extended product portfolio. He pointed to targeted sales partnerships, including with the CFH Group in Kazakhstan and South Africa, and to the continued development of the electromobility product portfolio in close cooperation with selected partners. The company’s 19-seat personnel carrier and 8-tonne cargo vehicle have already received MA certification in China, confirming their suitability for safe use in potentially explosive underground environments. Wang acknowledged that subdued investment activity in the mining equipment market is weighing on business in the short term but said the group continues to see attractive prospects in the medium and long term.
The profit warning matters for investors and industry observers because it highlights how broader caution in mining capital expenditure is translating into tangible financial strain for specialized equipment makers. The Middle East project termination adds a project-execution risk dimension, while the EUR 0.6 million provision illustrates how quickly unforeseen events can erode margins in a low-revenue environment. SMT Scharf’s strategic initiatives, particularly its push into battery-powered transport solutions and international sales partnerships, are intended to diversify revenue and reduce reliance on coal mining, but their near-term contribution appears insufficient to offset the current cyclical headwinds.
The full quarterly report as of 30 September 2026 is scheduled for publication on 29 October 2026. Further information about the SMT Scharf Group is available at www.smtscharf.com. The original release can be viewed at www.newmediawire.com.
