WashTec AG is accelerating its strategic transformation into an international solutions and services provider, announcing significant management changes and a revised outlook for the 2026 fiscal year. The company is simplifying its management structure, shortening decision-making processes, and strengthening operational control in response to business and earnings performance falling 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 will be streamlined 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 have prompted WashTec to update its 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 primarily in the first half of the year—related to production relocation and installation cost optimization—cannot be fully compensated in the current fiscal year but are expected to contribute positively to earnings from the following year.
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: the company now expects a declining EBIT margin of between 8% and 9%, down from a previously anticipated increase in EBIT disproportionately higher than revenue growth. Return on capital employed (ROCE) is now expected to be below the prior year's level, compared to a previously forecast increase of 0.5 to 2.0 percentage points.
The Management Board remains convinced that the organizational changes will accelerate strategy implementation with 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 and implement changes successfully, translating into sustainable growth and improved profitability in the mid- and long-term.
WashTec Group, based in Augsburg, Germany, is the leading provider of innovative carwash solutions worldwide, employing around 1,850 people and represented by independent distributors in approximately 80 countries. For more information, visit the original release on www.newmediawire.com.
