WashTec AG is accelerating its strategic transformation into an international solutions and services provider by simplifying its management structure, shortening decision-making processes, and strengthening operational control. The company's Supervisory Board has extended the contract of CEO Michael Drolshagen until the end of April 2030, signaling confidence in the strategic direction and continuity of the transformation. Simultaneously, the Management Board will be reduced to two members: Michael Drolshagen as CEO and Andreas Pabst as CFO. The areas previously overseen by the CSO will be reorganized and integrated into overall operational responsibility to achieve more efficient collaboration across functions and regions.
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 customer-oriented solutions and service offerings. The management structure at the middle management level has also been adjusted and streamlined.
These changes come in light of business and earnings performance falling short of expectations. The company anticipates that the expected increase in revenue for the 2026 fiscal year will be 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 mainly in the first half of the year, particularly regarding the relocation of production and optimization of installation costs, cannot be made up for in the current fiscal year but will contribute positively to earnings from the following year onwards.
The organizational changes will also have a negative impact on revenues for the current fiscal year, amounting to a single-digit million figure. 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 increase in EBIT that is disproportionately higher than revenue growth. Additionally, ROCE is now expected to be below the prior year's level, down from the previously anticipated increase of 0.5-2.0 percentage points.
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. WashTec expects this focus to increasingly translate into sustainable growth and improved profitability, enabling the achievement of mid- and long-term goals.
WashTec Group, based in Augsburg, Germany, is the leading provider of innovative solutions for carwash worldwide, employing around 1,850 people and present with own subsidiaries in North America, Europe, and Other segments, as well as independent distributors in around 80 countries. For more information, visit the original release on www.newmediawire.com.
