WashTec AG is accelerating its strategic transformation into an international solutions and services provider, implementing a more focused management and organizational structure to address business and earnings performance that has fallen short of expectations. The Supervisory Board has extended the contract of CEO Michael Drolshagen until the end of April 2030, signaling continuity and confidence in the company's strategic direction. Simultaneously, the Management Board is being streamlined to consist of two members: Michael Drolshagen as CEO and Andreas Pabst as CFO. The areas previously overseen by the Chief Sales Officer will be reorganized and integrated more closely into overall operational responsibility, aiming to achieve more efficient collaboration across functions and regions.
As part of this reorganization, 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 intended to strengthen the company's international market presence and drive forward a consistent focus on customer-oriented solutions and service offerings. The management structure at the middle management level has also been adjusted and streamlined.
These changes come as WashTec updates its outlook 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 is not yet meeting expectations. Delays that occurred primarily in the first half of the year, particularly regarding the relocation of production and the optimization of installation costs, cannot be made up in the current fiscal year but are expected to contribute positively to earnings from the following year onwards. The organizational changes will also negatively impact revenues for the current fiscal year by a single-digit million euro amount.
Consequently, WashTec has revised its earnings guidance for 2026. 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. Additionally, ROCE is now expected to be below the prior year's level, rather than an increase of 0.5 to 2.0 percentage points. The efficiency programs initiated will continue to be pursued consistently.
The Management Board is convinced that the organizational 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 is expected to strengthen the company's ability to capitalize on opportunities more quickly and successfully implement changes. This focus is anticipated to increasingly translate into sustainable growth and improved profitability, enabling WashTec to achieve its mid- and long-term goals.
WashTec, based in Augsburg, Germany, is the leading provider of innovative solutions for carwash worldwide, employing around 1,850 people and represented by independent distributors in around 80 countries. For more information, visit the original release on www.newmediawire.com.
