WashTec AG is accelerating its strategic transformation into an international solutions and services provider, driven by business and earnings performance that has fallen short of expectations. The company is simplifying its management structure, shortening decision-making processes, and strengthening operational control. This shift is crucial as it aims to enhance efficiency, speed of implementation, and customer focus, directly addressing the need to capitalize on opportunities more quickly in a competitive market.
In a clear signal of continuity and confidence in the company's strategic direction, the Supervisory Board has extended the contract of CEO Michael Drolshagen until the end of April 2030. This extension underscores the board's trust in Drolshagen's leadership to successfully implement the ongoing transformation. Simultaneously, the Management Board is being streamlined to two members: Drolshagen as CEO and Andreas Pabst as CFO. The areas previously overseen by the CSO will be reorganised and integrated into overall operational responsibility, aiming for more efficient collaboration across functions and regions. This leaner structure is expected to boost efficiency and speed, which are critical for the company's customer-centric approach.
As part of the reorganisation, Arthur Wessels, a long-standing manager and proven industry expert within the WashTec Group, is taking on global responsibility for sales and marketing. This move is designed to strengthen the company's international market presence and drive consistent focus on customer-oriented solutions and service offerings. Additionally, management at the middle level has been adjusted and streamlined. These changes are pivotal as they position WashTec to better respond to market demands and enhance its competitive edge.
The organisational changes have prompted an update to the company's outlook for the 2026 fiscal year. WashTec now anticipates revenue growth in the mid-single-digit percentage range, with the Equipment and Service business lines as main contributors, while the Consumables business line is not yet meeting expectations. The efficiency programs already initiated will continue, but delays from the first half of the year, particularly regarding production relocation and installation cost optimisation, cannot be fully compensated in the current fiscal year. However, these measures are expected to positively impact earnings from the following year onwards. The organisational changes themselves will negatively impact revenues by a single-digit million figure for the current fiscal year. Consequently, WashTec has revised its earnings guidance for 2026, now expecting a declining EBIT margin of between 8% and 9% (previously, an increase in EBIT disproportionately higher than revenue growth) and a ROCE below the prior year's level (previously, an increase of 0.5-2.0 percentage points). This revision reflects the short-term costs of the transformation but is seen as a necessary step for long-term sustainability.
The Management Board is convinced that these organisational changes will further accelerate the implementation of its strategy, taking into account optimal capital allocation. The focus on clear lines of responsibility, short decision-making processes, and a consistent customer-centric approach strengthens the company's ability to capitalise on opportunities more quickly and successfully implement changes. This is expected to translate into sustainable growth and improved profitability, enabling WashTec to achieve its mid- and long-term goals. The strategic realignment is crucial for WashTec to maintain its leadership in the carwash solutions market and adapt to evolving customer needs.
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