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 announced that its Supervisory Board has extended the contract of CEO Michael Drolshagen until the end of April 2030, signaling continuity and confidence in the current strategy. Simultaneously, the Management Board will be reduced to two members: 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.
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 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 in light of business and earnings performance falling short of expectations. The company now anticipates that revenue growth 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. Efficiency programs initiated earlier will continue, but 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. However, these measures 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%, down from the previous expectation of an EBIT increase disproportionately higher than revenue growth. Additionally, ROCE is now expected to fall below the prior year's level, compared to the previous guidance of an increase of 0.5 to 2.0 percentage points.
The Management Board believes these organizational changes will accelerate strategy implementation, enhance capital allocation, and improve customer focus. The company expects this to translate into sustainable growth and improved profitability, enabling it to achieve its mid- and long-term goals. For more information, visit the original release at www.newmediawire.com.
