WashTec AG is accelerating its strategic transformation into an international solutions and services provider by simplifying its management structure and sharpening its operational focus. The company announced that its Supervisory Board has extended the contract of CEO Michael Drolshagen until the end of April 2030, a move that underscores confidence in the current strategic direction and the ongoing transformation. Simultaneously, the Management Board will be reduced to two members: Drolshagen as CEO and Andreas Pabst as CFO. The areas previously overseen by the Chief Sales Officer will be reorganized and integrated more closely into overall operational responsibility.
This streamlining is designed to boost efficiency, speed of implementation, and customer focus. As part of the reorganization, Arthur Wessels, a long-standing manager and industry expert within the WashTec Group, will assume global responsibility for sales and marketing. The company believes this will strengthen its international market presence and drive a consistent focus on customer-oriented solutions and service offerings. Middle management structures have also been adjusted and streamlined.
The changes come as WashTec's business and earnings performance have fallen short of expectations. The company now anticipates that revenue growth for the 2026 fiscal year will be in the mid-single-digit percentage range, driven mainly by the Equipment and Service business lines, while the Consumables business line continues to lag. Delays experienced primarily in the first half of the year—particularly regarding the relocation of production and optimization of installation costs—cannot be fully compensated in the current fiscal year, but are expected to contribute positively to earnings from the following year onward.
As a result, WashTec has revised its earnings guidance for 2026. The company now expects a declining EBIT margin of between 8% and 9%, compared to its previous expectation of an EBIT increase disproportionately higher than revenue growth. Consequently, ROCE is now projected to be below the prior year's level, rather than increasing by 0.5 to 2.0 percentage points. The organizational changes are also expected to negatively impact revenues for the current fiscal year by a single-digit million euro amount.
The Management Board remains convinced that the agreed organizational changes will further accelerate strategy implementation while ensuring optimal capital allocation. The focus on clear lines of responsibility, short decision-making processes, and a consistent customer-centric approach is intended to strengthen the company's ability to capitalize on opportunities more quickly. WashTec expects this focus to increasingly translate into sustainable growth and improved profitability, enabling it to achieve its mid- and long-term goals. The company, based in Augsburg, Germany, employs around 1,850 people worldwide and is present with its own subsidiaries in North America, Europe, and other segments, as well as through independent distributors in around 80 countries. For more information, visit the original release on www.newmediawire.com.
