WashTec Streamlines Management to Accelerate Transformation, Extends CEO Contract, and Revises 2026 Guidance

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 continuity and confidence in the current strategy. 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 foster 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 a consistent focus on customer-oriented solutions and service offerings. The management structure at the middle management level has also been adjusted and streamlined to boost efficiency and speed of implementation.

These organizational changes come in light of business and earnings performance falling short of expectations. WashTec 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. The efficiency programs initiated will continue, but delays from the first half of the year—particularly regarding production relocation and installation cost optimization—cannot be made up in the current fiscal year. These delays are expected to contribute positively to earnings from the following year onwards. Additionally, the organizational changes will 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 increase in EBIT that is disproportionately higher than revenue growth. ROCE is also now expected to be below the prior year's level, rather than increasing by 0.5 to 2.0 percentage points as previously anticipated.

The Management Board is convinced that the agreed organizational changes will 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.

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