Bosch's Profit Margin in 2025 Falls Below 2% Amid Deep Restructuring and EV Industry Headwinds

[Company Performance] Bosch's operating profit margin in 2025 dropped significantly below 2%, marking its lowest level in recent years.

Core Developments: Missed Targets on Both Sales and Profit

Stefan Hartung acknowledged that Bosch failed to meet its sales target for 2025, and its operating profit margin fell far short of expectations. Excluding the impact of the 7.4 billion euro acquisition of Johnson Controls-Hitachi Air Conditioning, actual revenue declined.

Key Figures: Three-Year Decline and Restructuring Costs

The profit margin decreased from 4.8% in 2023 to 3.5% in 2024, and further dropped below 2% in 2025. The company recorded a 3.1 billion euro restructuring provision and plans to cut 13,000 jobs in its Mobility Solutions division, adding to the 9,000 layoffs already implemented in 2024—bringing the total workforce reduction to a historic high.

Strategic Context: Transition Pains and Industry-Wide Challenges

Burdened by tariffs and restructuring costs, Bosch has postponed its long-term profit margin target of 7% to beyond 2027. Fellow German suppliers ZF Friedrichshafen and Schaeffler are also grappling with losses and layoffs, highlighting systemic pressures across the industry.