WashTec AG is accelerating its transformation into an international solutions and services provider by simplifying its management structure and shortening decision-making processes. The Supervisory Board has extended the contract of CEO Michael Drolshagen until the end of April 2030, signaling continuity in strategy implementation. The Management Board will now consist of two members: Michael Drolshagen as CEO and Andreas Pabst as CFO. The areas previously overseen by the CSO will be reorganised and integrated into overall operational responsibility to boost efficiency, speed, and customer focus.
As part of the reorganisation, Arthur Wessels, a long-standing manager within the WashTec Group, takes on global responsibility for sales and marketing. This aims to strengthen the company's international market presence and drive customer-oriented solutions and service offerings. Middle management structures have also been adjusted and streamlined.
The changes come as business and earnings performance fell short of expectations. WashTec now anticipates revenue growth in the mid-single-digit percentage range for fiscal year 2026, driven mainly by the Equipment and Service business lines, while the Consumables business line is not yet meeting expectations. Delays from the first half of the year, particularly regarding the relocation of production and optimisation of installation costs, cannot be made up in the current fiscal year but are expected to contribute positively from the following year onwards.
The organisational 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 guidance of an EBIT increase disproportionately higher than revenue growth. ROCE is also expected to be below the prior year's level, rather than increasing by 0.5-2.0 percentage points.
The Management Board is convinced that the organisational 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 capitalise on opportunities more quickly and translate into sustainable growth and improved profitability. WashTec, based in Augsburg, Germany, employs around 1,850 people worldwide and is 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 NewMediaWire.
