The Wacker Neuson Group, a leading manufacturer of light and compact equipment, published preliminary figures for the financial year 2025, showing group revenue of approximately EUR 2,219 million as planned, though the earnings before interest and taxes (EBIT) margin of 6.0 percent was below guidance due to one-off effects in the fourth quarter. Without these effects, the EBIT margin would have been 6.5 percent, at the lower end of the guidance range. The company reported a free cash flow of EUR 202 million, an increase from the previous year, and a net working capital ratio of 29.2 percent, below the target maximum of 30 percent. Investments amounted to EUR 67 million, under the guided value, due to slower market recovery and adjusted investment management.
The market environment remained subdued at the beginning of 2025 after a challenging 2024, leading to weak revenue and earnings in the first quarter. However, progress was made over the year, with revenue and profitability developing positively and operative performance improving. Strategic milestones included the production launch of the first excavator models within the OEM cooperation with John Deere at the Austrian plant in Linz, aimed at strengthening the Group's operative resilience and competitive position in North America. Trade fairs such as Bauma in April 2025 and Agritechica in November 2025 provided additional momentum, showcasing innovative offerings from zero-emission solutions to digital services. The Group also adapted to challenges from increased US tariffs on European machinery and components since summer 2025, limiting effects through short-term adjustments in procurement, production, and logistics.
Dr. Karl Tragl, CEO of the Wacker Neuson Group, commented that after a challenging 2024, the company improved in revenue and profitability in 2025, successfully managed the production launch for John Deere, and adapted to exogenous factors like US tariffs. He noted that 2026 will see a slight market upturn, with plans for moderate revenue increase and higher EBIT margin compared to 2025, and a continued focus on long-term profitable growth after the end of public takeover discussions with Doosan Bobcat Inc. The one-off effects in Q4/2025 included additional legal and consulting costs related to these discussions, accruals from share price impact on the virtual stock option plan, and impairments on assets.
The positive outlook for the financial year 2026 is based on expectations of a slight market upturn after stagnation, despite ongoing geopolitical tensions and economic uncertainties. The Wacker Neuson Group anticipates further improvement in operational business, positive momentum from infrastructure and modernization programs in Europe, and solid demand in North America despite US tariffs. The company expects a moderate revenue increase and improvement in EBIT margin, consistently pursuing its Strategy 2030 targets for profitable growth, operational excellence, and long-term value creation. The final financial year 2025 figures and 2026 guidance will be published on March 26, 2026, with more information available at https://www.wackerneusongroup.com.
