Financial year 2025: ElringKlinger enhances profitability while advancing its transformation

PRESS RELEASE

Financial year 2025: ElringKlinger enhances profitability while advancing its transformation

• Group revenue at EUR 1.641 billion (2024: EUR 1.803 billion, reference level[1] 2024: EUR 1.643 billion), up 2.3% in organic terms
• Adjusted EBIT margin increases to 5.4% (2024: 4.9%), adjusted EBIT at EUR 88.6 million (2024: EUR 87.6 million), operating free cash flow for the annual period at EUR 33.1 million (2024: EUR 58.4 million), net financial liabilities remain at a low level despite substantial investment in the ramp-up of large-scale series production orders
• Continuity in dividend payment: proposal of EUR 0.15 per share
• Guidance for 2026: slight organic revenue growth, adjusted EBIT margin of around 6 to 7%, operating free cash flow slightly positive, consistently low level of net debt
• CEO Thomas Jessulat: “As the key financials for 2025 show, we remain fully on track in our efforts to implement our SHAPE30 transformation strategy. The next stages of this transformation now lie ahead, driven by our firm focus on further strengthening the Group's competitiveness.”

Dettingen/Erms (Germany), March 26, 2026 +++ In issuing its 2025 annual report, ElringKlinger AG (ISIN DE0007856023/WKN 785602) has presented its definitive, audited results for the 2025 financial year. In the financial year just ended, the Group generated revenue of EUR 1,640.9 million, which initially would appear to constitute a year-on-year reduction of EUR 162.2 million (2024: EUR 1,803.1 million). In this context, however, a number of factors have to be taken into account, including negative exchange rate effects of EUR 40.4 million and M&A effects of EUR 159.7 million resulting from the divestment of the two Group companies in Switzerland and the United States in 2024 as well as the sale of a UK-based subsidiary with effect from November 30, 2025. Taking these factors into account, ElringKlinger achieved organic revenue growth of EUR 37.9 million or 2.3% in the 2025 financial year. The Group's annual forecast had included a projection for organic revenue on a par with the previous year.

The Group also met or slightly exceeded its annual targets with regard to other key metrics: At 5.4% (2024: 4.9%), the adjusted EBIT margin was at the upper end of the expected target range, operating free cash flow of EUR 33.1 million (2024: EUR 58.4 million) was in the middle of the target corridor at 2.0% of Group revenue (2024: 3.2%), and the net debt-to-EBITDA ratio was exactly as forecast at 2.0 (2024: 1.7). Calculated on the basis of EBITDA adjusted for exceptional items, this figure was even lower at 1.6 (2024: 1.2).

Commenting on the results, Thomas Jessulat, CEO of ElringKlinger AG, said, “As the key financials for 2025 show, we remain fully on track in our efforts to implement our SHAPE30 transformation strategy. Organic revenue was up slightly year on year and the margin reached the upper end of our guidance. We were fully on target with regard to our forecasts for operating free cash flow and net debt. Given the challenging environment in which we are having to operate, the financial year just ended can be considered a success. The next stages of our transformation now lie ahead. With the ramp-up of series production relating to high-volume orders in the field of electromobility, we aim to further enhance our profitability and generate positive cash flow over the long term, driven by our firm focus on further strengthening the Group's competitiveness.”

Further revenue growth for E-Mobility business unit

Within the Original Equipment (OE) segment, the E-Mobility business unit, which covers battery and fuel cell technology, accounted for the strongest revenue growth. Revenue increased by EUR 41.6 million or 40.8% to EUR 144 million compared to the previous year (2024: EUR 102 million). This was driven primarily by the continued ramp-up of series production relating to the first high-volume order placed by a global battery manufacturer. Overall, the OE segment recorded a decline in revenue of EUR 218 million to EUR 1,117 million (2024: EUR 1,335 million) due to the closure of four sites in Germany and North America as well as the sale of the Group companies in Switzerland, the United States, and United Kingdom.

The Aftermarket segment continued to execute its growth strategy effectively, registering a further expansion in revenue. Revenue rose by EUR 41.9 million or 12.5% to EUR 378.2 million (2024: EUR 336.3 million). The Engineered Plastics segment recorded similar momentum, expanding revenue by EUR 14.5 million or 11.2% to EUR 144.5 million (2024: EUR 130.0 million) on the back of targeted optimizations to its product mix. In this context, demand for high-quality and technologically advanced plastic components grew at a particularly strong rate.

Additional stages of transformation now executed

In pursuing its SHAPE30 transformation strategy, ElringKlinger is addressing the far-reaching changes facing the automotive industry as a whole and honing its Group profile with a view to safeguarding its competitive position well into the future. Following the sale of two Group companies in 2024, the Group initiated or completed the closure of a further four sites in Germany and North America in the financial year just ended. In addition, the Group is increasingly concentrating its activities on profitable and highly competitive fields of business. In the context of this focused approach, ElringKlinger also sold its Group company hofer powertrain products UK Ltd. in Solihull, UK, with effect from November 30, 2025. Against the backdrop of the ongoing transformation, ElringKlinger also implemented STREAMLINE in 2025, which is a program aimed at scaling back staff costs at a global level.

The STREAMLINE and SHAPE30 projects in particular resulted in exceptional charges of EUR 69.3 million in 2025, which had an adverse effect on earnings. These expenses contrast with anticipated structural savings of EUR 50 million, the first positive effects of which will be evident as early as 2026. The savings are set to take full effect in 2027. Aligned with the medium-term outlook, these measures are expected to make a significant contribution to enhancing the Group's profitability – especially in the OE segment – and to generating sustained cash flow.

Adjusted EBIT margin at upper end of target range

Against the backdrop of persistently challenging conditions, the Group generated earnings before interest, taxes, depreciation, and amortization (EBITDA) of EUR 140.8 million (2024: EUR 144.0 million), just slightly down on the prior-year figure. Excluding the exceptional items associated with the Group’s transformation efforts, adjusted EBITDA amounted to EUR 178.3 million (2024: EUR 197.1 million). Adjusted earnings before interest and taxes (adjusted EBIT) amounted to EUR 88.6 million (2024: EUR 87.6 million), which corresponds to an adjusted EBIT margin of 5.4% (2024: 4.9%). The one-off effects relating to SHAPE30 and STREAMLINE measures in the amount of EUR 69.3 million (2024: EUR 237.6 million) resulted in reported EBIT of EUR 19.3 million (2024: EUR -150.0 million). After deducting net finance cost, taxes, and non-controlling interests, the net loss for the reporting period stood at EUR -6.1 million (2024: EUR -137.8 million).

Dividend continuity: proposed payout of EUR 0.15 per share

Calculated on the basis of the net loss for the period, reported earnings per share amounted to EUR -0.10 (2024: EUR -2.18) per share. Taking exceptional items into account to illustrate operating profitability, adjusted earnings per share reached EUR 0.88 (2024: EUR 0.70). In view of this positive performance and the anticipated improvement in profitability over the coming years, the Management Board, in consultation with the Supervisory Board, will propose to the upcoming Annual General Meeting that an unchanged dividend of EUR 0.15 (2024: EUR 0.15) per share be paid out. In addition, the Supervisory Board approved the Management Board's proposal to hold the upcoming Annual General Meeting on May 12, 2026, in a virtual format.

Operating free cash flow, net debt, and net working capital at annual target level

ElringKlinger further optimized its net working capital in the 2025 financial year and, with a ratio of 17.6% (2024: 19.2%) of Group revenue, fully achieved its annual target of “below 25%”. As a result of this and on the back of a strong fourth quarter, the Group generated operating free cash flow of EUR 33.1 million in the financial year just ended (2024: EUR 58.4 million), which corresponds to a ratio of 2.0% (2024: 3.2%) of Group revenue. This metric also contributed to keeping net financial liabilities at a low level, despite substantial investments in the ramp-up of series production relating to large-scale orders. The Group recorded a net debt-to-EBITDA ratio, i.e., net financial liabilities in relation to EBITDA, of 2.0 (2024: 1.7). Calculated on the basis of adjusted EBITDA, this figure stood at 1.6 (2024: 1.2).

Guidance for 2026: slight revenue growth in organic terms, further improvement in adjusted EBIT margin

The geopolitical and trade policy landscape remains challenging. As the world shifts away from a multipolar, rules-based order, compounded by the proliferation of conflicts and wars in trouble hotspots as well as the more widespread use of tariffs as political instruments, uncertainty and volatility are intensifying further. This has culminated most recently in the escalation of the Iran conflict. The implications for the trajectory of energy prices and the security of supply chains are as difficult to predict as their impact on the global economic situation, particularly in cross-border sectors such as the automotive industry.

Against this backdrop, ElringKlinger anticipates a slight increase in revenue for the current financial year in organic terms, i.e., factoring in currency and M&A effects. The Group's medium-term projection is for moderate revenue growth, taking into account market forecasts and based on its high-volume series production nominations. Given the advances achieved with regard to its transformation, the Group anticipates additional gains in profitability. Alongside the initial effects of the STREAMLINE program, this is expected to be underpinned by structural improvements arising from SHAPE30 measures and continued ramp-ups in the E-Mobility business unit. Overall, the Group anticipates an adjusted EBIT margin of around 6 to 7%. In the medium term, ElringKlinger expects to achieve a figure of around 8%.

With regard to the operating free cash flow, the figure is expected to be slightly positive given the improvement in financial performance and the conclusion of the investment phase.

This metric is set to improve further in the medium, with the Management Board targeting a figure of around 2 to 4%. The adjusted return on capital employed (ROCE) is expected to be in the range of around 8 to 9% in 2026. The medium-term projection is a figure of at least 11%. The Group anticipates an adjusted net debt-to-EBITDA ratio in the range of 1.0 to 2.0 both in the current financial year and in the medium term.

^[1] Revenue excluding the divested entities in Switzerland, the United States, and United Kingdom
 

Definitive, audited results for the 2025 financial year and the fourth quarter of 2025

^◊  For better comparability, excluding the Group companies in Switzerland and the United States divested in 2024; figures including the two entities at EUR 1,793.1 million or EUR 437.4 million

^#  Year-end figure already excluding the Group companies in Switzerland and the United States divested in 2024

*  Proposal to Annual General Meeting 2026

The 2025 annual report is available online at: https://elringklinger.de/en/investor-relations/reports-presentations/financial-reports-pulse-magazine

About ElringKlinger  

As a global development partner drawing on many years of expertise, ElringKlinger has established itself as one of the leading suppliers to the automotive industry, in addition to serving customers in the plastics engineering and other sectors. Since its inception in 1879, the technology group based in Dettingen/Erms, Germany, has been consistent in its efforts to provide innovative answers to present and future challenges. Today, ElringKlinger is actively shaping the future of sustainable mobility with the help of pioneering product and system solutions tailored to any type of drive platform, alongside sealing and shielding applications as well as lightweighting concepts. With a track record of two decades in the field of cutting-edge battery and fuel cell technology, the Group was at the forefront of establishing itself as an expert in e-mobility. Operating with a dedicated team of around 8,600 #transformationpioneers at over 40 locations worldwide and revenue of approx. EUR 1.6 billion in 2025, ElringKlinger is driving the sustainable transformation of the industry – brimming with passion, talent, and innovation.

Legal notice

This release contains forward-looking statements. These statements are based on the expectations, market assessments, and forecasts of the Management Board and the information currently available to it. These forward-looking statements shall, in particular, not be construed as guarantees of future developments and results referred to therein. Although the Management Board is of the firm opinion that the statements made and their underlying beliefs and expectations are realistic, they are based on assumptions that may prove to be incorrect. Future results and developments depend on a variety of factors, risks, and uncertainties that may lead to changes in the expectations and judgments that have been expressed. These factors include, for example, changes in general economic and business conditions, fluctuations in exchange rates and interest rates, lack of acceptance of new products and services, and changes in business strategy.