GRAMMER AG: Significant increase in profitability in 2025 financial year

• Revenue reaches EUR 1,821.2 million (previous year: EUR 1,921.7 million) in a market environment that remains challenging
• Operating EBIT up significantly to EUR 75.1 million (previous year: EUR 41.6 million) – operating EBIT margin improves to 4.1%
• EBIT at EUR 69.1 million (previous year: EUR 8.1 million)
• Free cash flow improves significantly to EUR 39.1 million (previous year: EUR –18.9 million)
• “Top 10” measures program boosts profitability and strengthens cost structure for the long term
• Outlook 2026: Slight increase in revenue and further improvement in profitability
• New medium-term guidance 2028: Revenue of approximately EUR 2.5 billion with an operating EBIT margin of over 5%

Ursensollen, March 27, 2026 – The GRAMMER Group today presented its audited consolidated financial statements for the 2025 fiscal year. In a market environment still characterized by geopolitical tensions, trade uncertainties and weak demand in parts of the automotive and commercial vehicle industries, the company generated revenue of EUR 1,821.2 million (previous year: EUR 1,921.7 million).

Consistent implementation of the "Top 10" measures boosts profitability

Despite the decline in revenue, GRAMMER was able to significantly improve its profitability, which can be attributed to the consistent implementation of the “Top 10” measures program during the reporting period. The goal of the program is to sustainably improve the Group’s competitiveness and profitability.

Operating earnings before interest and taxes (operating EBIT) rose to EUR 75.1 million (previous year: EUR 41.6 million). The operating EBIT margin increased accordingly to 4.1% (previous year: 2.2%). EBIT amounted to EUR 69.1 million (previous year: EUR 8.1 million).

Significant progress was achieved in particular through capacity adjustments in EMEA and AMERICAS, the implementation of the restructuring and future-oriented collective agreement at the German sites and the continued expansion of the GRAMMER Business Center in Niš (Serbia). Bundling administrative functions and streamlining processes made it possible to reduce administrative costs on a sustainable basis.

In addition, GRAMMER consistently focused on its core business in the AMERICAS region. As part of this effort, the company divested holdings outside its strategic core activities and wound up a US subsidiary.

Earnings before taxes totaled EUR 32.5 million (previous year: EUR –23.7 million), while earnings after taxes were EUR 23.5 million (previous year: EUR –48.0 million). Free cash flow from continuing operations improved significantly to EUR 39.1 million (previous year: EUR –18.9 million).

„We have proven our adaptability and have therefore decidedly paved the way for the future in a demanding market environment”, says Jens Öhlenschläger, CEO and Spokesman of the Executive Board. “The measures introduced take effect and create a viable foundation for sustainable growth. A key priority was the consistent continuation of the existing “Top 10” program, which has made a significant contribution to the company’s stabilization and further development—particularly through sustainably improved cost structures and increased operational efficiency. In addition, there was a clear focus on streamlining reporting lines and slimming down the organization. This made it possible to shorten decision-making processes and further increase transparency within the company. In view of the upcoming financial year, we remain vigilant and consequently pursue strategic initiatives, to be capable of reacting flexibly to market changes in the future. Despite continued limited demand in important markets, GRAMMER is clearly more robustly positioned today than it was a year ago.”

Varying regional trends mark the financial year

Business performance in 2025 continued to be shaped by market dynamics that varied by region. In EMEA, GRAMMER Group’s highest-revenue region, revenue rose slightly by 2.4% to EUR 1,069.6 million (previous year: EUR 1,044.3 million). Both product areas played their part in this development. The Commercial Vehicles product area reported growth of 2.9% to EUR 449.1 million (previous year: EUR 436.6 million), while Automotive revenue rose by 2.1% to EUR 620.5 million (previous year: EUR 607.7 million). This enabled GRAMMER to grow despite the market trend in the region, a development that can be primarily attributed to the integration of the Jifeng Automotive Interior (JAI) Group. At the same time, the region benefited substantially from the consistent implementation of the “Top 10” measures program. As a result of restructuring initiatives and efficiency-enhancing measures, operating EBIT improved significantly from EUR 25.2 million to EUR 62.8 million, resulting in an operating EBIT margin of 5.9% (previous year: 2.4%).

In APAC, revenue fell by 11.1% to EUR 477.3 million (previous year: EUR 536.6 million). This was primarily due to a weaker performance in the Automotive product area, where revenue decreased by 15.6% to EUR 341.4 million (previous year: EUR 404.6 million). American and European OEMs in particular lost market share in China to local OEMs, which now account for more than 50% of GRAMMER China’s revenue in the Automotive area. In contrast, revenue in the Commercial Vehicles area rose by 3.0% to EUR 135.9 million (previous year: EUR 132.0 million), which was primarily attributable to the off-road product segment. Operating EBIT fell to EUR 43.2 million, primarily due to the decline in revenue (previous year: EUR 46.5 million). The operating EBIT margin improved to 9.1% (previous year: 8.7%).

The AMERICAS region reported a significant decline in revenue of 19.1% to EUR 316.9 million (previous year: EUR 391.7 million). The main reason was primarily lower customer orders and discontinuation of model series by several OEMs in the Automotive area, where revenue fell by 24.1% to 209.8 million EUR (previous year: EUR 276.3 million). The Commercial Vehicles area reported a decline of 7.2% to 107.1 million EUR (previous year: EUR 115.4 million). Operating EBIT was EUR –14.7 million (previous year: EUR 
–15.8 million) and was impacted by start-up costs at a US plant as well as costs associated with ramping up new projects. The operating EBIT margin was –4.6% (previous year: –4.0%).

Outlook for 2026 and medium-term guidance for 2028

GRAMMER continues to expect a challenging market environment in the current 2026 financial year. In particular, demand trends in the automotive and commercial vehicle industries are likely to vary by region and continue to be influenced by geopolitical and trade uncertainties.

Against this backdrop, the Executive Board expects a generally stable to slightly positive performance for the GRAMMER Group in the 2026 financial year. Growth opportunities are seen primarily in the expansion of the automotive business in China – particularly on account of the growing importance of local Chinese customers – and also in AMERICAS as a result of the ramp-up of new projects. Overall, assuming stable exchange rates, the Executive Board forecasts revenue of approximately EUR 1.9 billion for the 2026 financial year.

At the same time, GRAMMER expects that the consistent implementation of the “Top 10” measures program, along with further efficiency and restructuring measures, will contribute to a further improvement in profitability. Consequently, the Executive Board expects the GRAMMER Group’s operating EBIT to amount to approximately EUR 80.0 million (2025: EUR 75.1 million).

In addition, the GRAMMER Group’s revised medium-term guidance through 2028 forecasts revenue of EUR 2.5 billion and an operating EBIT margin of over 5%. This target reflects the structural improvements in the cost base and the Group’s increased operational efficiency. Growth drivers include in particular the automotive business in China and the ramp-up of new projects in the AMERICAS region. The structural foundations laid in 2025 form the basis for profitable growth.

The full 2025 financial report is available at https://www.grammer.com/en/investor-relations/financial-publications-presentations/annual-reports/.

GRAMMER Group key performance indicators

¹ From continuing operations. The TMD Group was sold and reported as a discontinued operation in the 2024 financial year. 

² To provide a clearer picture of factoring, certain comparative figures from the prior-year financial statements have been restated. See also note 3 to the consolidated financial statements.

³ Some of the comparative figures have been restated from the previous year’s financial statements on the basis of the finalized closing balance sheet of the European business of the Ningbo Jifeng Group that was acquired. See also note 6 to the consolidated financial statements.

The disclosures in the consolidated financial statements may contain rounding differences.

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