Research & Development: Innovation as a driver of our future

During the reporting year, we developed application-oriented adaptations of existing technologies for use in new applications and markets, while concentrating on optimizing the use of artificial intelligence for research and development purposes. Group-wide R&D expenditures totaled €130.2 million (prior year: €128.3 million).

Our commitment to innovation is reflected in the numbers: more than 100 priority patent applications were filed over the course of the year. At year-end, our intellectual property portfolio comprised approximately 4,800 patents and patent applications as well as approximately 3,300 trademarks and trademark applications. More than half of our priority patent applications cover applications beyond internal combustion engine (ICE) technology.

The new Filtration Materials business unit consolidates our expertise from across the full spectrum of filtration disciplines and makes it accessible to the broad range of applications our filtration solutions serve: from passenger cars and commercial vehicles, construction and agricultural machinery with a strong focus on alternative drive technologies, to industrial solutions in the energy and mobility sectors, and further into building and appliance applications as well as the air and water segments of our LS&E business unit. Our research and development activities now benefit every area where the task is to separate the useful from the harmful.

The vertical integration of filtration materials development and production in Marklkofen has, since 2025, enabled faster product launches, a higher pace of innovation, and optimized self-sufficiency. A particular focus of our research teams was on developing materials for our new production lines: Spunbond, Meltblown, Biofunctional, and Lamination. In February 2025, we produced the first small-batch series of polyester spunbond at that facility.

The most significant material innovation in wet-laid cellulose was the joint development of a new lignin-based impregnation together with a leading filter media supplier. It reduces the carbon footprint by 5% and crude oil consumption by 27% – a concrete contribution to our award-winning "Naturally Better" initiative, which gives suppliers access to a growing market for more environmentally friendly industrial materials while improving their ESG ratings.

MANN+HUMMEL is actively involved in a wide range of EU-funded projects, spanning cleaner mobility to cleaner water.

As part of the Horizon Europe-funded AeroSolfd project – for which we hold coordination responsibility – we are developing market-ready retrofit solutions to reduce exhaust and brake emissions in semi-enclosed environments. In the H2MAC project, we developed a new adsorbent material that captures 30% more SO₂ than conventional activated carbons, an important characteristic for cathode air filters in fuel cells. Within H2MAC, we are testing and demonstrating these membrane solutions in real-world applications to establish them as the standard for the critical filtration requirements of the future hydrogen economy. A newly added project, H2UpScale, focuses on developing key components for proton exchange membrane fuel cell systems above 250 kW for heavy-duty transportation. The SPRINT project is dedicated to developing sustainable and cost-effective sodium-ion batteries for stationary energy storage.

In the area of indoor air filtration, we continued our participation in the LEARN project (cleaner air in schools), K-HEALTHinAir (prevention of health-hazardous indoor air pollution), and INQUIRE (cleaner indoor air with particular attention to health risks for young children).

We have been supporting cleaner mobility for more than 85 years. In 2025, we set the course for the future, optimized processes, and brought new products to market that reflect our expertise, our drive for innovation, and our understanding of the challenges facing the transportation sector.

During the reporting year, we established a complexity management team to systematically reduce product complexity. Using a new software solution, engineers around the world can search for 3D shapes rather than keywords – if someone in Mexico is designing a part, a developer in Germany can find it through a geometric 3D search and reuse it, rather than incurring the cost of creating a new part from scratch. Our multi-project management system TnT-NPI coordinates product innovations from development through market launch and identifies resource bottlenecks through improved task transparency.

The electrification of the drivetrain is a central development priority. For heavy-duty electric commercial vehicles, we brought an e-axle module to production readiness – a highly complex thermal and lubrication management unit featuring three filters, two pumps, three coolers, and multiple oil circuits, compact enough to fit within the tight packaging constraints of an electric axle.

For high-voltage battery venting, we brought a unit with separate functional modes to production readiness: under normal operating conditions, valves minimize moisture ingress to extend battery service life. In the event of cell failure (thermal runaway), a "Flying Cap" opens to safely discharge hot gases through a large cross-section in milliseconds, preventing battery explosion.

In 2025, we once again developed new, innovative solutions for cleaner air and cleaner water – with a clear focus on sustainability, energy efficiency, and the expansion of system-based filtration solutions.

In line with European Ecodesign requirements, we optimized our MANN+HUMMEL Air Filtration brand portfolio through the redesign of pocket filters, increased use of recycled materials, and the introduction of an additional product series with A+ classification. As a result, we continue to offer the broadest selection of A+ and A rated products in the Eurovent rankings. We strengthened environmental transparency through life cycle assessments (LCA), environmental product declarations (EPD), and the full-scale rollout of BREEZE – our software tool for optimizing filtration costs – now available to our customers and distribution partners.

We achieved significant performance improvements across many products: the redesign of the AirCube Eco 4V compact filter, for example, resulted in a weight reduction of 3 kg while maintaining the same technical performance. We have also transitioned nearly all of our wet-laid filter media to filter media and components free of intentionally added PFAS, supporting regulatory compliance and long-term sustainability goals.

System solutions gained strategic importance through an expanded range of fan filter units (FFUs), terminal modules, and modular housing systems – successfully deployed in high-tech installations in Germany and the Netherlands, as well as in laminar flow ceilings for operating rooms in major hospitals, including in Oman.

The increased use of virtual engineering and cleanroom simulation enabled rapid early-stage validation, reduced project risk, and improved the predictability of system performance. An additional focus was the introduction of standardized compact filters and filter panels based on internally produced media. Deeper vertical integration increases power density, sustainability, and cost efficiency while strengthening the competitiveness of our molecular filtration portfolio in the HVAC and semiconductor markets – particularly with regard to the new ISO 10121-3 standard. In parallel, we developed new standardized honeycomb solutions and protected them through patent filings.

The installation of a new, highly sensitive GC-MS system significantly enhanced our capabilities for precise material and product analysis – delivering deeper insight into chemical processes, particularly for semiconductor applications, and more reliable predictions of remaining filter service life.

In the medical sector, we developed new technological capabilities for several customer-specific development programs. At our Himmelkron facility, we successfully transitioned a proven comfort seating product to modern manufacturing technologies, securing long-term supply capability while preserving the benefits of energy-efficient passive seat climate control.

In the area of Direct Air Capture (DAC), we made significant advances in both material and process development.

The reporting year was defined globally by a further acceleration of technological change and rising customer expectations. Digital transformation is our response: our advances in manufacturing digitalization, data platform unification, AI implementation, and process automation provide a solid foundation for greater customer satisfaction, operational excellence, and data-driven decision-making.

Key enablers are our "Lean Enterprise and Advanced Processes" program and the global transition to SAP S/4HANA. Following multiple test cycles and concentrated efforts across various teams, we completed the global go-live during the reporting year without any significant disruption to business operations. The subsequent HyperCare phase was successfully concluded in December 2025. This gives us a solid foundation for a comprehensive transition to an end-to-end, process-oriented company with strong data governance and a clear customer value mindset.

Another important milestone was the expansion of the MANN+HUMMEL Digital Manufacturing Platform (DMP): by connecting more than 20 plants worldwide, we created a unified real-time data environment that improves performance, quality, and energy transparency. The successful introduction of a "Digital Shopfloor Management" concept also establishes a globally consistent, structured approach to SQDC processes and forms the backbone for future AI-driven problem-solving.

We have continued to systematically expand our use of artificial intelligence. The launch of our first Agentic AI Material Master Data Recommendation Engine demonstrates how expert systems can leverage operational experience and strategic guidelines to enable scalable, automated decision support.

Since March 2025, we have also been a partner of the IPAI CAMPUS in Heilbronn – an international research center for more than 5,000 people working on the development and application of artificial intelligence.

Digital transformation is making its impact felt across the entire organization: in HR, we introduced digital skills management and SuccessFactors-based compensation processes. The finance team advanced its automation agenda through AI-supported reporting. And our GBTS team made significant progress on its standardization and automation roadmap, including AI-driven solutions.

Our digital platform smartFE brings together development expertise, measurement data, simulation, and machine learning into an innovative design tool that helps all developers achieve faster results. In addition, we launched our new Filtration Materials learning module in 2025 and trained more than 4,000 employees worldwide over the course of the year.