Bosch Warns 2025 Profit Margin to Drop Below 2%, Earnings Plunge

Robert Bosch GmbH, the world's largest automotive parts supplier, recently warned that its operating profit margin for 2025 will fall significantly below 2%, far short of expectations. The company’s margin had already declined from 4.8% in 2023 to 3.5% in 2024. CEO Stefan Hartung attributed the shrinking profits primarily to restructuring costs amounting to €3.1 billion—approximately 3.5% of sales—incurred as part of workforce reductions and other adjustment measures. Although revenue for 2025 is projected at around €91 billion, slightly higher than the €90 billion recorded in 2024, this growth is largely driven by approximately €4 billion in revenue from the acquisition of Johnson Controls-Hitachi. Excluding the impact of acquisitions, underlying revenue actually declined year-over-year. Hartung acknowledged that high tariffs and weak consumer demand will continue to weigh on performance in 2026, and the company may not achieve its long-term target operating margin of 7% until 2027. Bosch will officially release its 2025 financial results on January 30.