WashTec AG is accelerating its transformation from a manufacturer into an international solutions and services provider, while simultaneously simplifying its management structure and revising its 2026 earnings guidance downward. The Augsburg, Germany-based carwash solutions company announced the changes on September 14, 2026, citing business and earnings performance that fell short of expectations.
The Supervisory Board has extended the contract of Michael Drolshagen, Chief Executive Officer, until the end of April 2030. The board said the extension signals confidence in the company’s strategic direction and the ongoing transformation. At the same time, the Management Board will be reduced to two members until further notice: Drolshagen as CEO and Andreas Pabst as CFO. The areas previously overseen by the Chief Sales Officer will be reorganised and integrated more closely into overall operational responsibility, with the aim of achieving more efficient collaboration across functions and regions.
As part of the reorganisation, Arthur Wessels, a long-standing manager and industry expert within the WashTec Group, is taking on global responsibility for sales and marketing. The company said this will strengthen its international market presence and drive a consistent focus on customer-oriented solutions and service offerings. Middle management structures within the group have also been adjusted and streamlined.
The changes have prompted WashTec to update its outlook for the 2026 fiscal year. The company now expects revenue growth in the mid-single-digit percentage range, driven mainly by its Equipment and Service business lines, while the Consumables business line is not yet meeting expectations. Efficiency programs already initiated will continue. However, 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, though they are expected to contribute positively to earnings from the following year onward.
The organisational changes will also negatively impact revenues for the current fiscal year by a single-digit million euro amount. As a result, WashTec has revised its earnings guidance: it now expects a declining EBIT margin of between 8% and 9%, compared with its previous expectation of an increase in EBIT that is disproportionately higher than revenue growth. Consequently, the company anticipates a ROCE below the prior year’s level, down from a previously expected increase of 0.5 to 2.0 percentage points.
The Management Board expressed confidence that the organisational changes will accelerate strategy implementation and optimise capital allocation. It said the focus on clear lines of responsibility, short decision-making processes and a consistent customer-centric approach will strengthen the company’s ability to capitalise on opportunities more quickly and successfully implement changes, ultimately translating into sustainable growth and improved profitability to achieve mid- and long-term goals.
WashTec Group, based in Augsburg, Germany, is the leading provider of innovative carwash solutions worldwide. It employs around 1,850 people and operates through subsidiaries in North America, Europe and other segments, and is represented by independent distributors in around 80 countries. The original release is available at www.newmediawire.com.
