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 key markets and a significant drop in new systems business. The company now expects consolidated revenue of between EUR 75 million and EUR 85 million, down from a previous range of EUR 95 million to EUR 115 million, and operating earnings (EBIT) of between EUR -0.5 million and EUR -1.5 million, compared with an earlier projection of EUR 1 million to EUR 2 million. The announcement, reported via NEWMEDIAWIRE, underscores the challenges facing equipment suppliers as miners delay capital spending.
For the first nine months of 2026, SMT Scharf reported preliminary consolidated revenue of EUR 51.5 million, a steep decline from EUR 70.9 million in the same period of 2025. Operating earnings (EBIT) fell to EUR 0.0 million from EUR 2.4 million a year earlier. The company attributed the weak performance primarily to lower investment activity in coal mining and tunnel logistics markets, which led to a substantial reduction in new systems business. In addition, the third-quarter result was hit by the unexpected termination of a tunnel project in the Middle East, resulting in non-recurring charges of EUR 0.6 million from the recognition of provisions. With customers’ willingness to invest expected to remain subdued in the fourth quarter, the Managing Board opted to adjust its full-year guidance.
CEO Longjiao Wang emphasized that the company remains focused on executing its strategy and expanding its business with an extended product portfolio. “We are pursuing targeted sales partnerships, for example with the CFH Group in Kazakhstan and South Africa, and continue to develop our electromobility product portfolio in close cooperation with selected partners,” Wang said. He noted that 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. “Although subdued investment activity in the mining equipment market is weighing on our business in the short term, we continue to see attractive business prospects for the SMT Scharf Group in the medium and long term,” Wang added.
The profit warning matters for investors and industry observers because it signals that the downturn in mining capital expenditure is deeper and more prolonged than previously anticipated. SMT Scharf’s revised outlook suggests that the recovery in equipment demand may be delayed until 2027 or later, with knock-on effects for suppliers and mining companies alike. The company’s strategic initiatives—including the expansion of its electromobility portfolio, intensified international sales activities, and reorganization measures—are aimed at positioning it for a rebound, but near-term financial performance will remain under pressure. The full quarterly report as of 30 September 2026 is scheduled for publication on 29 October 2026. Further information about the SMT Scharf Group can be found at www.smtscharf.com. The original release is available on www.newmediawire.com.
