MAHLE Improves Operating Result in 2025

Press Releases »
  • Positive group result despite challenging conditions and significant restructuring expenses
  • Sales decline to EUR11.3 billion due to exchange rates and divestments
  • Productivity, adjusted EBIT and equity ratio increase, net debt decreases, liquidity ensured
  • CEO Arnd Franz: "MAHLE is on the way to profitable growth."
  • Synergies through new group structure become tangible; regional strengthening accelerates processes. Thermal management fully acquired.
  • Strategy MAHLE 2030+ works: Focus on electrification, thermal management, and strength in internal combustion engines
  • Innovative strength remains unbroken with around 860 patents and invention reports; research and development ratio stable at 5.4 percent
  • Environment remains volatile and unpredictable - MAHLE will continue to adapt with a focus on reliability and competitiveness

The technology group MAHLE closed the 2025 financial year with improved operational profitability in an environment characterized by uncertainty, new US tariffs, supply chain disruptions, and ongoing regulatory discussions. Revenue was at EUR11.3 billion. Excluding exchange rate and deconsolidation effects, its organic growth was 0.6 percent. Earnings before interest and taxes (EBIT), adjusted for one-off and special effects, rose to EUR442 million, while the adjusted EBIT margin improved to 3.9 percent. At the same time, MAHLE further reduced its net debt and increased its equity ratio. Overall, the group achieved a net income for the year and was thus able to secure for 2025 the operational turnaround achieved in 2023 and confirmed in 2024 - despite challenging conditions and significant restructuring provisions. Synergies through the new group structure become tangible; strengthening the regions accelerates processes. The MAHLE 2030+ strategy with a focus on electrification, thermal management, and leadership in internal combustion engines is working. With an unchanged research and development (R&D) quote of 5.4 percent and around 860 patents and invention reports, the innovation strength of the group remains unbroken. "MAHLE is on the way to profitable growth," said Arnd Franz, Chairman of the Group Management Board and CEO, at this year's annual press conference in Stuttgart. "The work has paid off. The achievements are measurable." In view of the ongoing volatile and unpredictable conditions, MAHLE continues to adapt with a focus on reliability and competitiveness. "We are rigorously pursuing our efficiency program 'Back on Track'," said Franz.

MAHLE Improves Operating Result in 2025

Market developments and challenges MAHLE Improves Operating Result in 2025

Geopolitical tensions, rising energy and personnel costs, strong currency fluctuations, stagnating markets across several regions, and intense competition—particularly from China—made 2025 another demanding year. MAHLE intensified its efficiency measures, streamlined its organization at record speed, optimized its portfolio, consolidated its production footprint, and adjusted capacity to reduced demand, especially in Europe and North America. MAHLE Improves Operating Result in 2025

Declining markets and exchange rate effects impact development of sales MAHLE Improves Operating Result in 2025

Sales were negatively affected by lower customer demand and weaker vehicle production in Europe and North America. The sluggish US truck market and slower-than-expected electrification in Europe weighed heavily. Exchange rate depreciation against the euro had the greatest impact on reported sales. Additional effects came from portfolio adjustments and divestments. MAHLE Improves Operating Result in 2025

The Powertrain and Charging business unit generated sales of EUR3.9 billion, representing 1.9 percent growth adjusted for currency effects, supported by internal combustion and hybrid-related products amid slower electric vehicle ramp-up.

The Thermal and Fluid Systems business unit achieved sales of EUR6.1 billion and maintained prior-year levels adjusted for exchange rates and consolidation effects.

The spare parts and service business, now Lifecycle and Mobility, generated EUR1.2 billion in sales, with currency-adjusted growth of 1.7 percent.

Regions: Growth markets are gaining importance

Adjusted for exchange rate and consolidation effects, sales declined in Europe and China, while growth was recorded in North America, South America, and East Asia. India was the fastest-growing region with growth exceeding 20 percent. Profitability improved or remained at a high level across all regions.

Improved operating profit, reduced net debt, secured liquidity

MAHLE significantly improved its operating result through productivity gains, material and purchasing cost optimization, pricing measures, and structural cost reductions, offsetting inflationary pressures, tariffs, exchange effects, and lower volumes.

Reported EBIT was affected by the absence of the prior-year one-time gain of EUR164 million from the sale of shares in the Behr-Hella Thermocontrol (BHTC) joint venture, as well as restructuring-related special items.

Net debt declined by EUR136 million to EUR1.03 billion despite full acquisition of MAHLE Behr. The equity ratio increased to 21.9 percent. MAHLE's financing base remains stable and diversified, highlighted by the extension of a EUR1.2 billion syndicated loan to February 2029.

"This is a strong signal of the banks' trust in our strategic orientation and the solid financial position of the group. The credit line gives us financial flexibility and the security we need for planning", said Markus Kapaun, Member of the MAHLE Management Board and CFO. "With our strategy MAHLE 2030+, we are on the right track and will pursue our approach consistently."

Innovative strength maintained: Focus on electrification and thermal management

MAHLE invested EUR607 million in R&D, supported by around 4,500 engineers. In 2025, the group filed 361 patents and 497 invention reports, with around 70 percent related to electrification.

Key innovations included a new range-extender system with high-voltage generator, a thermal management module with integrated heat pump, and a bionic radial blower for electric vehicles. MAHLE also expanded thermal expertise into non-automotive applications such as stationary battery storage, megawatt charging infrastructure, and commercial-vehicle fast-charging. In Lifecycle and Mobility, new high-voltage electronics and EV diagnostic tools were introduced.

Order intake remains stable - Electrification remains below expectations

New orders in 2025 represented average annual sales of EUR1.9 billion, maintaining stability. Major contributions came from high-power electronics, electric drive systems, thermal and air-conditioning systems, cooling modules, exhaust heat exchangers, e-compressors, and combustion-engine components.

While combustion-related products increased their share of orders, electrification-related order intake fell short of expectations due to weak EV demand—especially in Europe—intensified competition, and changing political conditions in the USA.

Growth through diversification and expansion of new business fields

MAHLE continues to diversify across technologies, markets, customers, and applications. The group is expanding beyond automotive markets into stationary infrastructure, logistics, leisure, and heavy-duty sectors such as maritime, mining, rail, and defense.

To accelerate growth, MAHLE reorganized its non-automotive activities into the new Industrial and Special Solutions unit within Group Sales, enabling more efficient use of existing capacities. Current priorities include megawatt charging, data center cooling, power electronics, chip cooling, hydraulic systems, and defense and security applications.

Consolidation pressure remains high - Adjustment remains a priority

Due to continued market pressure, MAHLE further adjusted its global production network in 2025, including site closures, divestments, and workforce reductions, particularly in Europe and North America. Headcount declined by 3,466 employees to 64,242 worldwide.

Cost reductions in administration and development functions are ongoing, alongside continued transformation discussions for German sites. Consolidation pressure, especially in Europe, is expected to persist. "Political decisions in Brussels directly influence consolidation pressure," said CEO Arnd Franz, calling for technology openness and growth-friendly CO? regulations to safeguard investment, industrial sites, and jobs in Europe.

Key figures 2025

20242025
Sales (EUR billion)11.68111.257
EBIT (EUR million)423228
Adjusted EBIT (EUR million)347442
EBIT margin (percent)3.62.0
Adjusted EBIT margin (percent)3.03.9
Consolidated net profit (EUR million)2220
Equity (EUR million) 1,5481,640
Equity ratio20.121.9
Headcount(number of people, as of Dec 31)67,70864,242

The 2025 annual report is available on the MAHLE website at https://annualreport.mahle.com/en.


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