Can In-Car Software Help Bosch Revive its Finances?

Bosch faced a difficult 2025 as the global economy slowed sector sales and impacted operating margins.

Sales revenue reached US$107bn, but the operating EBIT margin fell to 2% from 3.5% in 2024.

Markus Forschner, Member of the Board of Management and Chief Financial Officer of Robert Bosch GmbH, said that while the company held its own in most markets, results were negatively impacted by a lack of margins due to lower sales and increased tariffs.

The company also set aside considerable provisions for structural adjustments and personnel measures, which weighed on the final figures.

Regional sales performance and currency effects

Preliminary regional figures reflected a tense situation globally, with Europe being the weakest region.

In Europe, sales revenue fell to US$52bn, while the Americas saw an increase of 3.6% to 18.5 billion euros. Asia Pacific generated US$22bn in sales, a nominal increase of 1.2%.

"The situation remained tense in all our global regions," said Markus, who explained that currency effects were significant, with exchange-rate adjusted growth in the Americas reaching 9.2% for the year.

Milestones from the workshop to wafers

• 1886: Robert Bosch opens the "Workshop for Precision Mechanics and Electrical Engineering" in Stuttgart

• 1902: The company patents the high-voltage magneto ignition system with a spark plug

• 1906: Bosch establishes its first sales office in the United States

• 1978: The firm launches the first electronic anti-lock braking system (ABS) for passenger cars

• 2021: Bosch opens its first fully automated semiconductor wafer fab in Dresden.

Balancing restructuring costs and future investment

To maintain its financial independence, Bosch is implementing a Strategy 2030 plan that requires a competitive cost level. This has resulted in the announcement of 13,000 job cuts, landing particularly in Germany where the headcount fell by nearly 5%.

"But even a foundation-owned company has to keep an eye on securing its existence and cannot ignore business realities," said Stefan Hartung, Chairman of the Board of Management and CEO of Bosch.

Stefan said that these measures are intended to restore a 7% margin by 2027, allowing the company to continue financing upfront investments in areas like software and AI.

All sustainability, net zero and sustainable supply chain leaders should attend:

• Sustainability LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Sustainability LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Procurement & Supply Chain LIVE, these events brings together CSOs, ESG leaders and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.

Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Sector growth in building and mobility

Despite the economic difficulties, the Energy and Building Technology business sector saw a 12.3% sales increase to US$9.9bn. This was driven by the acquisition of the HVAC solutions business, which offset the sale of Building Technologies assets.

In the Mobility sector, sales were up slightly to US$66bn. Markus said that the company is holding its own despite trade barriers and uncertainties.

The Industrial Technology sector maintained previous year levels at US$7.7bn, while Consumer Goods fell by 1.9% to US$23.5bn due to consumer reluctance to spend.

Outlook for 2026 economic slowdown

For the current financial year, Bosch expects a slight slowdown in global economic growth to 2.3%. Price and competitive pressure are expected to increase, and the impact of increased tariffs will be felt more fully.

"We’ll begin to see positive effects on margin once we’ve improved our cost and competitive situation," said Markus. He emphasised that improving expenditures and structures is essential to finance the company's future development.