WashTec AG is accelerating the implementation of its strategy to further develop as an international solutions and services provider. In light of business and earnings performance falling short of expectations, the Company is focusing on further simplifying its management structure, shortening decision-making processes, and strengthening operational control. This strategic move is crucial as it aims to address underperformance and position the company for sustainable growth.
In this context, the Supervisory Board has extended the contract of Michael Drolshagen, Chief Executive Officer, until the end of April 2030. This extension signals confidence in the Company's strategic direction and the successful implementation of the transformation that has begun. Continuity in leadership is essential for executing long-term strategies and maintaining stakeholder trust.
At the same time, the Management Board structure is being streamlined. Consequently, the Management Board of WashTec AG will, until further notice, consist of two members: Michael Drolshagen as CEO and Andreas Pabst as CFO. The areas previously overseen by the CSO will be reorganised and more closely integrated into overall operational responsibility. One of the aims is to achieve more efficient collaboration across functions and regions in order to accelerate the transformation into a solution provider. This simplification is expected to enhance agility and decision-making speed, which are critical in a competitive market.
As part of this reorganisation, Arthur Wessels, a long-standing manager and proven industry expert within the WashTec Group, is taking on global responsibility for sales and marketing. This will further strengthen the Company's international market presence and drive forward the consistent focus on customer-oriented solutions and service offerings. Wessels' appointment underscores the company's commitment to leveraging internal talent and deep industry knowledge to drive growth.
Furthermore, the management structure at middle management level within the WashTec Group has been adjusted and streamlined. These changes are designed to reduce complexity and improve operational efficiency, ultimately benefiting customers and shareholders.
The changes outlined also have an impact on the Company's outlook for its business and earnings performance for the 2026 fiscal year. Overall, WashTec anticipates that the expected increase in revenue will be in the mid-single-digit percentage range. The Equipment and Service business lines will be the main contributors to this, whilst the Consumables business line is not yet able to meet expectations. The efficiency programs that have been initiated will continue to be pursued consistently.
The delays that occurred mainly in the first half of the year - particularly regarding the relocation of production and the optimisation of installation costs - cannot be made up for in the current fiscal year, but will contribute positively to earnings performance from the following year onwards, as planned. The organisational changes outlined above will also have a negative impact on revenues for the current fiscal year, amounting to a single-digit million figure. Against this backdrop, WashTec has today revised its earnings guidance for 2026. The Company now expects a declining EBIT margin of between 8% and 9% (previously: increase in EBIT that is disproportionately higher than revenue growth) and, consequently, a ROCE below the prior year's level (previously: an increase in ROCE of 0.5-2.0 percentage points). This revision reflects the short-term costs of transformation but is necessary for long-term health.
The Management Board is convinced that the organisational changes now agreed upon will further accelerate the implementation of our strategy taking into account optimal capital allocation. The focus on clear lines of responsibility, short decision-making processes and a consistent customer-centric approach strengthens our ability to capitalise on opportunities more quickly and successfully implement changes. We expect this focus to increasingly translate into sustainable growth and improved profitability, thereby enabling us to achieve our mid- and long-term goals. For more information, visit the original release on www.newmediawire.com.
