Successful conclusion to ElringKlinger's 2025 financial year: foundation laid for further transformation

PRESS RELEASE

Successful conclusion to ElringKlinger's 2025 financial year: foundation laid for further transformation

• Preliminary, unaudited results for 2025:

• Revenue at EUR 1,641 million (2024: EUR 1,803 million, 2024 reference level[1]: EUR 1,644 million), organic revenue growth at 2.1 %, adjusted EBIT margin at 5.4 % (2024: 4.9%)
• Operating free cash flow at EUR 32.6 million (2024: EUR 58.4 million)
• Net financial liabilities of EUR 288 million (2024: EUR 246 million) remain at a low level even after investment phase

• CEO Thomas Jessulat: "We are now entering the next phase of our transformation, for which we laid a solid foundation in the financial year just ended. We have invested heavily in future-facing areas of business and further increased revenue of the E-Mobility business. At 5.4 %, the adjusted Group EBIT margin was at the upper end of the target range."

Based on preliminary and unaudited data for the 2025 financial year, ElringKlinger AG (ISIN DE0007856023 / WKN 785602) generated revenue of EUR 1,641 million (2024: EUR 1,803 million). This includes negative currency effects of EUR 40.4 million as well as M&A effects from the divestment of the two entities in Switzerland and the United States equivalent to EUR 159 million. With an organic revenue growth of 2.1 %, the Group slightly exceeded its target of achieving organic revenue roughly on a par with the previous year (revenue in 2024 excluding the two divested entities: EUR 1,644 million).

As regards earnings, ElringKlinger achieved adjusted EBIT of EUR 88.6 million, which corresponds to an adjusted EBIT margin of 5.4 % (2024: 4.9 %). At the beginning of the year, the Group's estimate had stood at around 5 %. This includes exceptional items amounting to EUR 69.3 million, which are attributable mainly to the program to streamline staff costs and measures aimed at focusing activities in the context of SHAPE30. Reported EBIT, which had included impairment losses of EUR 238 million in the previous year, amounted to EUR 19.3 million in 2025 (2024: EUR -150.0 million).

Other metrics such as operating free cash flow or net debt-to-EBITDA ratio were also in line with the guidance provided by the Group at the beginning of 2025. With the net working capital ratio standing at a low 17.4 % (2024: 19.2 %) and with an investment ratio of 8.7 % (2024: 6.0 %), the Group generated operating free cash flow of EUR 32.6 million (2024: EUR 58.4 million), which corresponds to a revenue ratio of 2.0 % (2024: 3.2 %). In its guidance, the Group had pointed to a figure in the range of around 1 to 3 %. On this basis, net financial liabilities were kept at a modest level of EUR 288 million (2024: EUR 246 million) despite the investment phase in preparation for high-volume series production orders. Thus, the net debt-to-EBITDA ratio stood at 2.0 (Dec. 31, 2024: 1.7). In its guidance, the Group had expected a figure around 2. Adjusted for exceptional items, the net debt-to-EBITDA ratio was 1.5 (Dec. 31, 2024: 1.2).

Asked to comment, Thomas Jessulat, CEO of the ElringKlinger Group, said, "We are now entering the next phase of our transformation, for which we laid a solid foundation in the financial year just ended. We have made substantial investments in excess of EUR 140 million, primarily with a focus on the Group's future-facing technologies, and further increased revenue of the E-Mobility business  unit, which encompasses both Battery and Fuel Cell Technology. At 5.4 %, the adjusted EBIT margin was at the upper end of the target range, although earnings in the E-Mobility business noticeably remain in negative territory with adjusted EBIT of EUR -61.6 million (2024: EUR -47.2 million) on the back of significant ramp-up costs in particular. This shows that ElringKlinger's classical business generates reliable cash flows and creates sufficient financial room for strategic investments. In ramping up series production relating to further high-volume orders, we will drive revenue growth in the field of battery technology in particular. We are consistently pursuing our chosen path in the context of our SHAPE30 transformation strategy with a view to establishing the best possible position for this phase."

SHAPE30 transformation strategy: focus on profitable activities

Against the backdrop of persistently challenging conditions, the Group is continuing to drive forward its transformation in line with its SHAPE30 strategy. The measures are aimed at positioning the Group in such a way as to ensure that it can help shape the future of mobility well into 2030. Having discontinued product groups and divested subsidiaries in recent years, ElringKlinger is continuing to focus on its profitable business in support of improved earnings performance, particularly in the OE segment, and sustained cash flow generation.

As a result of the decision not to pursue the systems business within the area of electric drive units and to focus on profitable components business, ElringKlinger divested its subsidiary hofer powertrain products UK Ltd. in the financial year under review. The two parties agreed not to disclose details of the agreement, which was finalized at the end of November 2025. In addition, the Group is assessing its other sites and shareholdings and will take further steps if necessary.

Streamlining measures contribute to improved earnings

In an effort to position the Group effectively for the future, ElringKlinger implemented and successfully completed STREAMLINE, a global program to scale back staff costs, in 2025. The measures under STREAMLINE and SHAPE30 will translate into a significant reduction of the Group’s cost level. As planned, the initial benefits of these measures will be seen as early as the current financial year, the measures will take full effect from 2027 onwards.

Entry into growth phase on the basis of large-scale orders received

Having secured several high-volume series production orders in the field of electromobility, ElringKlinger has spent the last two years in particular preparing for the ramp-up at several sites around the world – in Germany, the United States, and China. Operations with regard to these orders have already commenced, are currently in the start-up phase, or are set to begin in the course of the year. In the 2025 financial year, revenue generated in the E-Mobility business unit was expanded further to EUR 144 million (2024: EUR 103 million).

CEO Thomas Jessulat: "In the financial year just ended, we made further progress in implementing our SHAPE30 transformation strategy. We have been preparing for ramp-up with a view to entering the growth phase. At the same time, we are continuing to hone the Group's profile by reducing costs and focusing on profitable activities. In this context, our aim is to enhance the Group's profitability and generate cash flow for the long term.

The complete and audited financial results, including the outlook for 2026, will be released as part of the publication of the 2025 annual report on March 26, 2026.

Preliminary, unaudited figures for the 2025 financial year and the fourth quarter of 2025

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 9,000 #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.

^[1] Revenue excluding the two entities in Switzerland and the United States divested at the end of 2024.