Financial position and performance 2025: Stability in a volatile environment

We closed fiscal year 2025 with revenues of €4,214.9 million (prior year: €4,527.5 million) and EBIT of €193.6 million (prior year: €230.0 million). Despite a challenging market environment, significant restructuring charges, and global uncertainties, the adjusted operating margin held exactly at the prior-year level – a testament to our operational strength and cost discipline.

Note: All figures are rounded. This may lead to minor discrepancies when totaling sums and when determining percentages.

Revenue declined by approximately €313 million, or 6.9%, from €4,527.5 million to €4,214.9 million in the reporting year. Adjusted for negative currency effects of €154.9 million, the organic decline was 3.5%. The original forecast of roughly stable revenue levels was therefore not achieved. Two factors weighed particularly heavily: in the Life Sciences & Environment segment, customers postponed major projects in Asia due to the macroeconomic environment. In the Transportation segment, volumes – particularly in the North American aftermarket – fell short of expectations. Both segments, however, demonstrated encouragingly stable operating profitability despite the volume shortfall.

EBIT of €193.6 million (EBIT margin: 4.6%) includes restructuring charges of €51.1 million (prior year: €14.8 million). These charges stem from measures to optimize our global footprint – including in Spain and Germany – aimed at improving the efficiency of our production and site structure and laying the groundwork for sustainable earnings growth. Adjusted for these and other one-time items totaling €50.0 million (prior year: €33.8 million), adjusted operating earnings came in at €243.6 million, with an adjusted EBIT margin of 5.8% – exactly in line with the prior-year level (5.8%) and above the mid-single-digit guidance we had provided. The ability to maintain margins despite declining revenues reflects significantly improved operational efficiency, rigorous cost management, and an optimized product mix.

EBITDA came in at €391 million (prior year: €427 million), corresponding to an EBITDA margin of 9.3% (prior year: 9.4%). Net income turned positive: after a loss of €10 million in the prior year, MANN+HUMMEL reported net income of €22 million in 2025.

Research and development expenditures increased slightly to €130.2 million (prior year: €128.3 million), representing 3.1% of revenue (prior year: 2.8%). We continue to invest consistently in new technologies, particularly in the areas of electric mobility, sustainable filtration solutions, and the new Filtration Materials segment. More than 100 priority patent applications were filed during the reporting year, with more than half covering applications beyond combustion engine technology.

Perhaps the strongest highlight of the year comes from our financial position: free cash flow improved to €289.2 million – nearly double the prior-year figure of €133 million – representing 6.9% of revenue (prior year: 2.9%). This significant improvement reflects stronger liquidity discipline, a reduction in capital expenditures for property, plant, and equipment, and progress in working capital management. Throughout the entire reporting year, we were able to meet all financial obligations on time.

Total assets decreased to €3,865.3 million (prior year: €4,155.4 million), driven primarily by a reduction in property, plant, and equipment and a decline in current assets. Capital expenditures for property, plant, and equipment were reduced to €146.6 million (prior year: €202.1 million) – a deliberate move to strengthen free cash flow while maintaining strategic focus in capital allocation. Depreciation on property, plant, and equipment of €163 million slightly exceeded the investment volume (prior year: €160 million), reflecting the current investment cycle.

MANN+HUMMEL International GmbH & Co. KG, Ludwigsburg, as the ultimate parent company of the group, generated revenues of €52.3 million in fiscal year 2025 (prior year: €53.8 million), derived primarily from intragroup service charges. Through profit transfer agreements with its subsidiaries, the company recorded profits of €115.9 million (prior year: €70.3 million).

The parent company's EBIT rose significantly to €118.1 million (prior year: €72.4 million), driven primarily by the higher profit transfer from MANN+HUMMEL European Holding GmbH. Net income for the year amounted to €125.2 million (prior year: €77.8 million). Total assets increased to €756.7 million (prior year: €653.8 million), supported by the increase in special reserves to €450.0 million, while equity rose to €716.1 million (prior year: €613.1 million). The company was able to meet all financial obligations at all times.

For fiscal year 2026, MANN+HUMMEL expects the parent company to report higher revenue and EBIT growth in the range of +12% to +16% compared to the prior year¹.

¹ This assessment is based on information available at the time of report preparation and is subject to general economic uncertainties. As the company's risk management is conducted within the framework of the group-wide risk management system, reference is made to the Opportunities and Risk Report in the 2025 Annual Report for discussion of material opportunities and risks.