Freudenberg Group has announced its financial results for fiscal year 2025, demonstrating resilience despite a complex global economic landscape marked by geopolitical tensions, currency volatility and subdued demand in key industries. The company maintained strong financial discipline while continuing to invest in innovation, digitalization and strategic portfolio development.
The Weinheim-based technology group recorded sales of €11.73 billion in 2025, representing a slight decline of 1.8 percent compared to the previous year’s €11.95 billion. Exchange rate fluctuations, particularly involving the U.S. dollar and Chinese renminbi, negatively impacted sales by €281.6 million. Operating profit reached €1.09 billion, down 3.5 percent year-on-year, with a profit margin of 9.3 percent.
Despite these pressures, Freudenberg’s financial position remains robust. The company reported an equity ratio of 57.1 percent, reflecting continued balance sheet strength. Cash flow from operating activities stood at €974.2 million, while Moody’s reaffirmed the company’s A3 rating with a stable outlook, underscoring its strong creditworthiness.
The global market environment in 2025 posed challenges, particularly in automotive and machinery sectors across Europe and North America. In response, Freudenberg implemented structural adjustments, optimized operations and pursued targeted acquisitions, including investments in medical technology and the food industry.
A significant strategic shift involved the discontinuation of the Freudenberg e-Power Systems business as of January 1, 2026. While battery and fuel cell system operations will not continue, the hydrogen components segment has been integrated into Freudenberg Sealing Technologies. Approximately 600 employees, primarily in the United States, were affected. The decision reflects slower-than-expected development in U.S. battery and hydrogen markets, driven by weak demand, infrastructure gaps and regulatory uncertainty.
Freudenberg continued to prioritize innovation, investing €579.5 million in research and development, equivalent to 4.9 percent of sales. The share of revenue generated from products less than four years old increased to 31.5 percent, highlighting the company’s innovation effectiveness. The group is also expanding its use of artificial intelligence across R&D and production, with plans to invest €200 million in AI-supported research by 2028.
Global investments totaled €456 million, supporting facility expansion and modernization across multiple regions. Strategic acquisitions worth approximately €800 million further strengthened the company’s portfolio.
As of year-end 2025, Freudenberg employed 50,968 people worldwide. While restructuring led to a reduction in workforce, the company remains focused on long-term growth, operational excellence and technological leadership across its diverse markets.
