Editor’s Note: USD conversions approximate, based on April 16, 2026, exchange rate of €1 = $1.1782; not reported by MAHLE.
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, the company reported. Revenue was at €11.3 billion ($13.3 billion). Excluding exchange rate and deconsolidation effects, MAHLE’s organic growth was 0.6%. Earnings before interest and taxes (EBIT), adjusted for one-off and special effects, rose to €442 million ($520.7 million), while the adjusted EBIT margin improved to 3.9%.
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.
The MAHLE 2030+ strategy, with a focus on electrification, thermal management and leadership in internal combustion engines, is working, the company said in a press release. With an unchanged research and development (R&D) quote of 5.4% 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. “We are rigorously pursuing our efficiency program ‘Back on Track.’”
Market Developments & Challenges
Geopolitical uncertainties, increased energy costs, strong exchange rate fluctuations, declining or stagnating markets in numerous regions, as well as intense competition, especially from China, made 2025 another challenging business year, the company said. MAHLE has intensified its efficiency program and accelerated earnings and liquidity measures. The group said it streamlined its organization in record time, has consistently worked on portfolio optimization as well as on the consolidation of its production network, and has adapted its capacities to the reduced demand, particularly in Europe and North America.
Declining Markets & Exchange Rate Effects Impact Development of Sales
Sales development was curbed by declining customer demand and the resulting weaker vehicle production in the key markets of Europe and North America. The sluggish development of the truck business in the USA and the electrification in Europe, which continues to fall well short of expectations, had a major influence on this, the company said. The largest impact on sales was caused by the depreciation of various trading currencies against the euro. In addition, changes in the consolidation following the sale of joint venture shares and product divisions further reduced sales.
The “Powertrain and Charging” business unit, which includes the former Engine Systems and Components as well as Mechatronics and Electronics business units, recorded sales of €3.9 billion ($4.6 billion) in the year under review and thus increased by 1.9% adjusted for exchange rate effects. The development was affected, among other things, by the sluggish ramp-up of electric mobility in Europe.
The “Thermal and Fluid Systems” business unit, which comprises the former business units Thermal Management as well as Filtration and Engine Peripherals, achieved sales of €6.1 billion ($7.2 billion) and was able to maintain the previous year’s level adjusted for exchange rate effects and consolidation effects.
The spare parts and service business, which is now called “Lifecycle and Mobility,” generated sales of €1.2 billion ($1.4 billion) in 2025. After adjustment for exchange rate effects, this business unit achieved sales growth of 1.7%.
Regions: Growth Markets Are Gaining Importance
Adjusted for exchange rate and consolidation effects, in the year under review, sales in Europe and China declined, while growth was recorded in North America, South America and East Asia. India was the fastest-growing region, with a currency-adjusted increase of more than 20%. All regions improved or stabilized their profitability at a high level, the company said.
Improved Operating Profit, Reduced Net Debt, Secured Liquidity
MAHLE reported that it significantly improved its operating result. Productivity increases in the plants, material cost optimization, cost reductions in purchasing, as well as adjustments to selling prices, were able to more than offset burdens from customs duties, tariff- and inflation-driven personnel cost increases, rising raw material prices, exchange rate effects, and volume declines.
EBIT in 2025 was mainly influenced by the elimination of the one-time effect from the sale of shares in the joint venture Behr-Hella Thermocontrol (BHTC), amounting to €164 million ($193.2 million) compared to the previous year. In addition, EBIT was also impacted by special items, including restructuring expenses.
The positive development in net debt was continued by MAHLE with a reduction of €136 million ($160.2 million) to €1.03 billion ($1.21 billion), despite the acquisition of the remaining shares in MAHLE Behr. The equity ratio improved to 21.9%.
MAHLE has a stable financing perspective and can rely on a diverse and balanced financing portfolio. The company stated the capital market has confidence in its strategy, which was confirmed by the consensual extension of a syndicated loan with a total amount of €1.2 billion ($1.4 billion) to February 2029 by all the banks concerned.
“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 & Thermal Management
MAHLE reported spending €607 million ($715 million) on research and development in the year under review. Around 4,500 engineers worked on products for climate-friendly, efficient and user-friendly mobility. The group said it filed 361 new patents and 497 invention reports; around 70% of patent applications were again related to electrification.
The innovations presented in 2025 include a new range extender system with a high-voltage generator, a thermal management module with an integrated heat pump, and a bionic radial blower for electric vehicles.
In addition, MAHLE is transferring its thermal management expertise to applications outside the automotive industry, for example, with a cooling module for stationary battery storage and solutions for megawatt charging in fast-charging stations for commercial vehicles. For the spare parts and service business, MAHLE said it expanded its new portfolio of high-voltage electronics for workshops and introduced new diagnostic tools for electric vehicles.
Order Intake Remains Stable — Electrification Remains Below Expectations
MAHLE said it acquired new orders from OEMs in 2025, representing average annual sales of €1.9 billion ($2.2 billion), and therefore continued its stable development. High-power electronics and electric drive systems for electric vehicles, air conditioning systems with integrated electric heaters, cooling modules, exhaust gas heat exchangers and e-compressors, as well as air intake modules and piston systems for internal combustion engines made the largest contributions.
While the share of combustion engine products increased in order intake, the development of acquisitions in the electrification sector fell short of expectations due to a lack of sales figures for battery-powered electric vehicles, especially in Europe; fierce competition; and new political decisions in the USA, the group said.
Growth Through Diversification & Expansion of New Business Fields
MAHLE said it is addressing the pressure that grew still further last year with continued diversification and risk distribution: in technologies, markets, customers, and its business fields. The group is increasingly positioning itself outside the automobile sector: in solutions for stationary infrastructure, leisure and logistics applications, as well as heavy-duty applications for maritime, mining, rail and defense segments.
To offer customers the entire product portfolio in a more targeted way and develop new products faster in line with demand, MAHLE has reorganized its non-automotive business and established the “Industrial and Special Solutions” unit within group sales. In the future, existing capacities and plants can be used specifically for this purpose in a targeted way, which will allow more efficient control and more profitable production for smaller, more individual customer projects, according to the press release. Currently, the focus is mainly on high-power and megawatt charging, computer center cooling, power electronics and chip cooling, hydraulic systems, and applications in defense and security technology.
Consolidation Pressure Remains High — Adjustment Remains a Priority
In view of declining or stagnating markets, MAHLE is continuously adjusting its international production network. Last year, especially in Europe and North America, locations were shut down or sold, closure processes at further locations initiated and headcount at several locations significantly reduced. According to the company, it had 64,242 employees worldwide at the end of 2025, which is 3,466 people or 5.1% less than in the previous year.
MAHLE said it is currently reducing indirect costs in administration and development, especially in Europe and North America, and continues the transformation dialog for the German plants.
The consolidation pressure, especially in Europe, will continue over the next years, especially if the EU does not develop a more open attitude to CO2 regulation, the company said.
“The decisions in Brussels determine the consolidation pressure—with corresponding effects for us, too,” said Franz. “MAHLE will consistently continue to adapt and fight for innovations, orders and jobs in Europe—this requires enough business here.”
The CEO appealed to political decision-makers in Stuttgart, Berlin, and Brussels to enable growth and to allow technological diversity in CO2 regulation. Otherwise, there was a threat of investment, and with it, industrial sites and jobs leaving Europe and Germany.
| Key Figures 2025 | 2024 | 2025 |
|---|---|---|
| Sales | €11.681 billion ($13.763 billion) | €11.257 billion ($13.261 billion) |
| EBIT | €423 million ($498.409 million) | €228 million ($268.618 million) |
| Adjusted EBIT | €347 million ($408.853 million) | €442 million ($520.8 million) |
| EBIT margin | 3.6% | 2.0% |
| Adjusted EBIT margin | 3.0% | 3.9% |
| Consolidated net profit | €22 million ($25.921 million) | €20 million ($23.561 million) |
| Equity | €1,548 million ($1.824 billion) | €1,640 million ($1.932 billion) |
| Equity ratio | 20.1% | 21.9% |
| Headcount (as of Dec. 31) | 67,708 | 64,242 |
All figures above per MAHLE reporting.
The 2025 annual report is available on the MAHLE website at annualreport.mahle.com/en.