WashTec (ETR:WSU) used its annual press conference and presentation of the 2025 annual report to outline record revenue, expanding profitability, and a continued push toward efficiency programs and digital offerings, while also acknowledging softer demand trends in North America and heightened geopolitical uncertainty.
Record revenue and margin expansion in 2025
Management said 2025 underscored the company’s ability to deliver “reliably” despite volatile markets, high energy prices, rising interest rates, and subdued investment appetite in parts of Europe. WashTec reported revenue of EUR 498.6 million, a new high for the company, up 4.6% year over year. CFO Andreas Pabst added that on a currency-adjusted basis revenue rose 5.7%, which he described as effectively “breaking” the EUR 500 million level.
Quarterly trends and business line performance
In the fourth quarter, WashTec posted revenue of EUR 140.4 million, slightly below the prior year, which management said reflected a tough comparison against an unusually strong quarter in 2024. Fourth-quarter EBIT was EUR 16.5 million, also slightly below the prior year, but still represented an 11.8% margin.
WashTec said it grew revenue year over year across all three business lines—equipment, service, and consumables—with recurring areas growing fastest. Service and consumables revenue each increased by more than 7%.
- Equipment: EUR 268 million, up EUR 7 million, with strength in Europe offsetting weaker activity in North America.
- Service: EUR 155 million, up EUR 11 million, which the company linked to capacity expansion and improved digital connectivity.
- Consumables: EUR 70 million, up EUR 5 million, supported by expanded sales activities and favorable weather early in the year.
As service and consumables grew faster than equipment, their share of total revenue rose to 45.1% from 43.9%, bringing the company closer to a stated long-term goal of around 50%.
Regional picture: Europe strength, North America weakness
WashTec characterized Europe as the growth region in 2025, with Germany and France performing “exceptionally well.” The company reported Europe revenue growth of approximately 8%, with contributions from all three business lines. Segment EBIT rose by roughly 11% despite expenses tied to IT projects and implementing the company’s strategy.
In North America, management said both revenue and earnings were “significantly below” the prior year, driven by low equipment sales. WashTec cited protracted contract negotiations with major customers—particularly in the first half of the year—and noted that some installations were pushed into 2026, preventing revenue recognition in 2025. Executives said they were not satisfied with the region’s performance and are working on a future strategy for the U.S., but said it was still being aligned with the supervisory board and not yet finalized.
In the Q&A, management said key-account negotiations are now completed and that order intake in rollover systems is coming in, with initial tunnel requests from a large customer. Management also said signatures related to service and consumables are “ready and finished,” and described conditions as more positive at year-end than at the beginning of 2025.
Efficiency programs and production footprint investments
Both CEO Michael Drolshagen and CFO Pabst emphasized efficiency programs as a major driver of earnings improvement in 2025, and as a continuing focus into 2026 and beyond. WashTec outlined initiatives including production footprint optimization, installation cost reduction, manufacturing efficiency improvements, modularization and product-platform development, and service/logistics process enhancements. Management said some synergies were realized in 2025, while others are expected to flow through in 2026 and 2027.
A key element of the company’s 2026 plan is a higher level of strategic investment in its Augsburg site and Nýřany in the Czech Republic, spanning modernization, logistics expansion, assembly optimization, and further digitization and AI-supported workflows. The company described a gradual relocation of pre-assembly volumes to the Czech Republic to free Augsburg to become a finishing-focused “center of excellence.” WashTec said a new hall in Nýřany is intended to centralize module production and improve material flow and predictability across the value chain.
During Q&A, management quantified one labor-related efficiency program: WashTec said it shifted 21 people in 2025 and expects to shift an additional 62, estimating around EUR 30,000 cost reduction per person from that program in 2026.
Management also addressed a question about Europe’s fourth-quarter EBIT margin, attributing the year-over-year decline to installation costs not yet at targeted levels and to an employee bonus booked in Q4 2025 that was not booked in the comparable period of 2024. Executives added that ramping up the SmartCare Connect machine required training subcontractors globally, which affected the timing of certain installation-efficiency measures.
Product and digital milestones, shareholder returns, and 2026 guidance
WashTec highlighted several product developments. Management said SmartCare Connect, launched in May 2025, represents a new digital operating and service experience, and said market adoption has been “exceptional” in both order intake and sales. The company also pointed to new wheel washing technologies, optimized tunnel components, and continued development of digital solutions including EasyCarWash PRO and 4U and CarWash Assist.
In consumables, management said its premium chemical series MagicCare—including high-end polishers—has been adopted by over 1,000 customers and described the launch as a “complete success.” Looking ahead, WashTec previewed the planned 2026 introduction of JetWash, a redesigned self-service system that integrates a new digital payment concept called Wash&Pay and MagicCare chemistry.
On capital allocation, WashTec said it will propose a dividend of EUR 2.50 per dividend-entitled share at its May 12, 2026 Annual General Meeting, up EUR 0.10 from the prior year. The company also disclosed a share buyback launched Nov. 6, 2025 for up to 100,000 shares; it said the shares were acquired by March 13, 2026 for EUR 4.8 million.
For 2026, management guided for mid-single-digit percentage revenue growth and an EBIT increase disproportionately higher than revenue growth, assuming a largely stable price level and a solid order backlog. The company expects free cash flow of EUR 35 million to EUR 45 million, noting that higher planned CapEx contributes to the range. WashTec also expects ROCE to increase by 0.2 to 2.0 percentage points. Management said potential impacts from a future North America strategy were not included in the guidance and noted continued monitoring of geopolitical risks, including the conflict in the Middle East and potential supply-chain and cost impacts.
About WashTec (ETR:WSU)
WashTec AG provides solutions for car wash in Germany, Europe, North America, and the Asia Pacific. The company offers gantry carwashes, self-service, and commercial vehicle wash equipment, as well as conveyor tunnel systems. It also provides water recovery systems; full maintenance; on-call service agreements; service projects and upgrades; spare parts; and digital solutions. In addition, the company offers car wash management services; and financial services, such as financing and leasing solutions.
