Freudenberg profits ease amid weak automotive demand

Weinheim, Germany — Freudenberg Group reported slightly lower sales and earnings for 2025 amid weak automotive demand, currency headwinds and acquisition costs.

Sales declined 1.8% year-on-year to €11.73 billion, while operating profit fell 3.5% to €1.09 billion, the German group reported recently.

In 2025, Freudenberg said, the global market environment was characterised by “economic uncertainties, geopolitical tensions and increased volatility in exchange rates.”

In several core industries – including automotive and machine manufacturing – demand was weak or in decline, especially in Europe and North America, it added.

In response to this environment, said CEO Claus Moehlenkamp, "we have consistently focused on financial discipline, structural adjustments and targeted investments geared to the future."

"With the further development of our portfolio as well as our investments in innovation, digitalisation and new technologies, we are creating the foundation to position Freudenberg to be competitive and profitable for the long haul."

Freudenberg said exchange-rate effects, particularly involving the US dollar and Chinese renminbi, together with weaker demand in key markets – especially automotive – offset the benefits of acquisitions and price increases during the year.

During the year, Freudenberg invested €800 million in acquisitions, including medical technology company Fuji Seiko and businesses supporting its Capol food ingredients operation.

The group also continued investing in manufacturing, including a new medical production facility for medica devices in Costa Rica. (ERJ report)

Freudenberg Sealing Technologies invested in a new seal production plant in Queretaro, Mexico, while in Weinheim, it launched an automated warehouse and is building a new elastomer mixing facility serving the automotive and industrial sectors.

The group is also planning to invest €200 million in ‘AI-supported research’ by 2028 to accelerate product development and improve manufacturing efficiency.

On innovation, Freudenberg said products launched within the last four years accounted for 31.5% of sales, up from 30.8% a year earlier.