WashTec AG, the Augsburg-based global leader in carwash solutions, has announced a significant acceleration of its strategic transformation into an international solutions and services provider. The move comes as the company's business and earnings performance have fallen short of expectations, prompting a focus on simplifying management structures, shortening decision-making processes, and strengthening operational control.
In a clear signal of continuity and confidence in the company's strategic direction, the Supervisory Board has extended the contract of CEO Michael Drolshagen until the end of April 2030. Drolshagen's leadership is seen as crucial to the successful implementation of the transformation that has already begun.
Simultaneously, WashTec is streamlining its Management Board, which will now consist of two members: Michael Drolshagen as CEO and Andreas Pabst as CFO. The areas previously overseen by the Chief Sales Officer (CSO) will be reorganised and integrated more closely into overall operational responsibility. This aims to achieve more efficient collaboration across functions and regions, thereby accelerating the transformation into a solution provider.
As part of this reorganisation, Arthur Wessels, a long-standing manager and proven industry expert within the WashTec Group, is taking on global responsibility for sales and marketing. This is expected to further strengthen the company's international market presence and drive a consistent focus on customer-oriented solutions and service offerings. The management structure at the middle management level has also been adjusted and streamlined.
These organizational changes come with financial implications. WashTec has revised its earnings guidance for the 2026 fiscal year. While the company still anticipates revenue growth in the mid-single-digit percentage range, driven mainly by the Equipment and Service business lines, the Consumables business line is not yet meeting expectations. The efficiency programs initiated will continue, but delays experienced mainly in the first half of the year—particularly regarding the relocation of production and the optimisation of installation costs—cannot be made up in the current fiscal year. These delays are expected to contribute positively to earnings from the following year onwards.
Additionally, the organizational changes themselves will have a negative impact on revenues for the current fiscal year, amounting to a single-digit million figure. As a result, WashTec now expects a declining EBIT margin of between 8% and 9% for 2026, a significant revision from the previous guidance of an EBIT increase disproportionately higher than revenue growth. Consequently, ROCE is now expected to be below the prior year's level, compared to the previously anticipated increase of 0.5 to 2.0 percentage points.
The Management Board remains convinced that these organizational changes will accelerate the implementation of its strategy, taking into account optimal capital allocation. The focus on clear lines of responsibility, short decision-making processes, and a consistent customer-centric approach is expected to strengthen the company's ability to capitalise on opportunities more quickly and successfully implement changes. WashTec believes this focus will increasingly translate into sustainable growth and improved profitability, enabling the achievement of its mid- and long-term goals.
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