Overseas operations profitability drag
EMS segment remains challenged with long-term strategic questions. Romania at very low utilization; Thailand 4W lighting only ramps from CY27. Combined overseas drag impacts consolidated margins.
VARROC / Q3-FY26 / risks
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Varroc Engineering · Material risks, their source context, and severity in the latest available quarter.
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Risk intelligence
Material risks this quarter
high
PO Mobility arbitration (66 million euro)
Ongoing dispute involving supply agreement termination and divestment agreement conditions. Timeline uncertain (2-3 years typical); no provisions made as claims are disputed as unreasonable.
Gross margin decline in Q3
Gross margins declined driven by product mix changes and market share dynamics, not raw material prices (which are largely passed through).
Non-core forging business evaluation
Management acknowledged evaluating all options for non-auto forging business, indicating potential strategic review or divestment consideration.