WashTec AG is accelerating its transformation into an international solutions and services provider, implementing organizational changes to address business performance that has fallen short of expectations. The Supervisory Board has extended CEO Michael Drolshagen's contract until April 2030, signaling confidence in the company's strategic direction and continuity. Simultaneously, the Management Board is being streamlined to two members: CEO Michael Drolshagen and CFO Andreas Pabst. The areas previously overseen by the Chief Strategy Officer will be integrated into overall operational responsibility to boost efficiency, speed of implementation, and customer focus.
As part of this reorganization, Arthur Wessels, a long-standing manager and industry expert within the WashTec Group, will take on global responsibility for sales and marketing. This move aims to strengthen the company's international market presence and drive consistent focus on customer-oriented solutions and service offerings. Middle management structures have also been adjusted and streamlined to enhance cross-functional and regional collaboration. These changes are designed to accelerate the transformation into a solution provider and improve operational control.
The organizational changes have prompted WashTec to revise its earnings guidance for the 2026 fiscal year. The company now expects revenue growth in the mid-single-digit percentage range, driven mainly by the Equipment and Service business lines, while the Consumables business line continues to underperform. Efficiency programs initiated earlier will be pursued consistently. However, delays in the first half of the year, particularly regarding the relocation of production and optimization of installation costs, cannot be fully compensated for in the current fiscal year. These delays are expected to contribute positively to earnings from the following year onwards. The organizational changes themselves will negatively impact revenues for the current fiscal year by a single-digit million figure.
Consequently, WashTec has revised its 2026 earnings guidance. The company now expects a declining EBIT margin of between 8% and 9%, compared to the previous expectation of an EBIT increase disproportionately higher than revenue growth. Return on Capital Employed (ROCE) is now expected to be below the prior year's level, rather than an increase of 0.5 to 2.0 percentage points as previously anticipated. The Management Board believes these organizational changes will accelerate strategy implementation, optimize capital allocation, and strengthen the company's ability to capitalize on opportunities quickly. Clearer lines of responsibility and short decision-making processes are expected to translate into sustainable growth and improved profitability, aligning with mid- and long-term goals.
WashTec, based in Augsburg, Germany, is the leading provider of innovative carwash solutions worldwide, employing around 1,850 people and operating through subsidiaries in North America, Europe, and other regions, as well as independent distributors in approximately 80 countries. For more information, visit the original release on www.newmediawire.com.
