Rath AG Announces Profit Warning for 2025

Rath AG's management has issued a profit warning for the fiscal year 2025, expecting a decline in earnings before interest and taxes (EBIT). This decrease is primarily attributed to a significant drop in revenue, driven by weak market demand. Order suspensions by customers and heightened price competition have further compounded the issue, resulting in the loss of several contracts.

In response, Rath AG initiated a comprehensive cost reduction program at the start of the year. The company anticipates that the positive effects of these measures will be more visible in the latter half of 2025. Despite these efforts, the Management Board still forecasts a negative EBIT of approximately EUR 2.0 million due to the unexpected sales decline.