EDAG Group: Market uncertainty and delayed awarding of projects shape FY 2025 – Strategic measures accelerated to restore sustainable growth and competitiveness

EDAG Engineering Group AG: Market uncertainty and delayed awarding of projects shape FY 2025 – Strategic measures accelerated to restore sustainable growth and competitiveness 

• Revenue of EUR 714.0 m. and adjusted EBIT of EUR -12.9 m.
• Annual savings potential of around EUR 90 m.
• Industry and Defence revenues grow by 21% to approx. EUR 100 m.

Arbon, 26th March 2026 EDAG Engineering Group AG, one of the world’s leading independent engineering service providers with experts in Mobility, Defence, Industry und Public Solutions, today published its annual report for the 2025 financial year. The reporting year was characterized by a persistently challenging market environment in the automotive industry, rising geopolitical uncertainties and a noticeable reluctance to invest among many customers.

The EDAG Group’s order intake amounted to around EUR 688 m. in the fiscal year 2025, significantly below the prior year’s level. Group revenues declined by 13 percent to EUR 714.0 m. Across all three segments, project postponements and reduced call-offs from existing framework agreements with major OEMs and Tier-1 suppliers weighed on performance. The weaker demand from the mobility industry could only partially be offset by projects in other industrial sectors.

At the same time, the strategic relevance of diversification became increasingly evident: revenue generated with customers outside the mobility industry grew by around 21 percent year-over-year to approx. EUR 100 m. The defence sector in particular continued to show a high willingness to invest in 2025, offering attractive medium- to long-term growth prospects.

Measures to improve productivity weighed on annual results

The Group’s adjusted EBIT amounted to EUR ‑12.9 m., corresponding to an adjusted EBIT margin of -1.8 percent. The net result came in at EUR ‑43.7 m. In the Vehicle Engineering and Electrics/Electronics segments, the decline in earnings was mainly driven by lower revenue and underutilization in the mobility business. In the Production Solutions segment, adjusted EBIT was significantly impacted by an impairment of EUR 15 m. on a major project, while the largest segment, Vehicle Engineering, was able to deliver a positive EBIT contribution despite reduced capacity utilization.

Against the backdrop of continued underutilization, the EDAG Group implemented restructuring programs in 2024 and 2025 to sustainably strengthen efficiency and competitiveness. The related expenses amounted to around EUR 30 m. in the reporting year (prior year: around EUR 35 m.). In parallel, the expansion of Global Delivery locations, particularly in India, was accelerated and resources for stronger growth in international markets were further expanded. At the end of 2025, the EDAG Group employed 8,303 people worldwide, around 800 fewer than in the previous year. Structurally, the measures are expected to result in annual cost savings of around EUR 90 m.

Diversification and innovation as drivers of sustainable growth and outlook 2026

„Fiscal year was primarily shaped by the ongoing challenges in the automotive industry and by the countermeasures we initiated to improve capacity utilization. In the medium term, the consistent continuation of our strategic initiatives in diversification, internationalization and innovation will pay off and bring the EDAG Group back onto a path of sustainable growth with solid performance,“ explains CEO Harald Keller.

The strategic diversification of the EDAG Group into additional industry, in particular defence as well as medical technology, semiconductors, chemicals and energy, is being further intensified and will increasingly contribute to reduce the company’s dependence on the mobility sector. By bundling competencies across segments, EDAG has also developed additional industry-specific service offerings for newly addressable markets.

The innovation agenda focuses on further accelerating development processes (time-to-market). To this end, increasingly scalable, AI-powered solutions are being deployed, enhancing efficiency in both product and production engineering. Progress in software-defined vehicles can also be transferred to other industries, such as the defence sector („software-defined defence“). In addition, EDAG’s industrial metaverse platform „metys“, with its integrated „AI factory“ approach, provides data-driven applications that are also accessible to medium-sized companies.

These strategic measures will lead to above-average growth in the defence and industrial sectors, while maintaining a clear focus on mobility customers who continue to benefit from EDAG’s contributions to innovation and scalability. As part of internalization efforts, the mobility business will also support the expansion of revenue outside Germany, with growth impulses expected from China, India and the United States over the medium term.

For fiscal year 2026, the EDAG Group continues to expect a challenging market environment. Accordingly, the company anticipates revenue development within a corridor of around +/- 5 percent. At the same time, EDAG expects a return to positive adjusted EBIT of up to around 3 percent. Planned investments are expected to be in a range of around 2 to 3 percent.

Holger Merz, CFO of the EDAG Group, emphasizes: “The accelerated implementation of our strategic measures is essential to becoming more resilient even in a challenging market environment, while at the same time enabling targeted investments in growth areas. On this basis, the EDAG Group is pursuing clearly defined mid-term* financial targets, reflected in an increase in the adjusted EBIT margin to 6 to 8 percent.”

 

Selected financial figures for the 2024 financial year

(in EUR m.)      2025      2024 Group sales revenues 714.0 822.0 Vehicle Engineering 412.5 473.9 Electrics/Electronics 204.9 238.2 Production Solutions 111.5 132.2 Adjusted EBIT -12.9 31.1 Vehicle Engineering 7.9 24.0 Electrics/Electronics - 1.8 1.6 Production Solutions - 19.0 5.5 Adjusted EBITDA 26.9 73.4 Net income -43.7 -14.4 Trade Working Capital 83.2 93.5 CapEx 13.1 22.9 Free Cash-Flow -8.7 70.1 Net financial debt/credit [-/+] (without leasing)           -78.0 -33.2

 
*mid-term: within the next five years

 

About the EDAG Group

The EDAG Group is a globally leading, independent engineering service provider with experts in mobility, defense, industry, and public solutions. The company combines engineering excellence with the latest technological trends and provides comprehensive support to clients in the development of complex products, systems, and production solutions in an increasingly interconnected environment.

With an interdisciplinary team of some 8,000 experts, a global network of around 70 locations, and over 55 years of engineering experience, the EDAG Group pursues a unique 360-degree development approach that encompasses modern mobility solutions as well as industrial applications, safety-critical systems, and complex development and transformation projects for the public sector.

Across industries, the EDAG Group develops products, production facilities, and plants that holistically integrate and digitally connect all manufacturing-related processes. Innovative strategies, data-driven development approaches, and a powerful digital infrastructure form the foundation for forward-looking solutions — from highly automated industrial environments and resilient defense systems to sustainable concepts for public sector clients. The interdisciplinary approach and a strong partner network enable an optimal customer experience for an international client base comprising leading companies, institutions, and public sector clients.

The company has been listed on the stock exchange since 2015 and generated sales of € 714 million in 2025.

For more information, see the EDAG Group website: www.edag.com

 

Press contacts:

Investor Relations
Christian Schütze
Head of Investor Relations
Mobile:     +49 (0) 175- 8020 226
Email:        ir@edag-group.ag
www.ir.edag.com

Public Relations
Felix Schuster 
Head of Marketing & Communications
Mobile:   +49 (0) 173 - 7345473
Email:      communications@edag.com
www.edag.com
 

Predictive statements and forecasts

This communication contains predictive statements. These statements are based on current estimates and forecasts made by EDAG Group Management and the information currently available to its members. The predictive statements given here are not to be regarded as guarantees for future developments and results mentioned therein. The future performance and results will in fact depend on a number of factors; they involve various risks and uncertainties, and are based on assumptions which may prove to be incorrect. EDAG undertakes no obligation to update the predictive statements made in this communication.