EQS-News: GRAMMER AG publishes results for the first half of 2025

GRAMMER AG publishes results for the first half of 2025

• Macroeconomic and industry-specific uncertainties weigh on business development: Revenue declines by 4.5% to EUR 953.7 million
• EBIT below previous year's level at EUR 24.2 million (01–06 2024: EUR 32.9 million)
• Restructuring measures taking effect: Operating EBIT increased significantly to EUR 35.6 million (01–06 2024: EUR 29.6 million) with an improved operating EBIT margin of 3.7% (01–06 2024: 3.0%)
• Revenue in both product areas impacted by weak demand due to the economic situation: Automotive down 4.1% to EUR 612.6 million and Commercial Vehicles down 5.4% to EUR 341.1 million
• Kelvin Wang appointed to the Executive Board as Chief Financial Officer (CFO)
• Outlook for the full year 2025 confirmed: Revenue expected to remain at previous year's level of around EUR 1.9 billion with operating EBIT of around EUR 60 million

Ursensollen, August 14, 2025 – The GRAMMER Group today published its financial results for the first half of 2025. Group revenue declined by 4.5% to EUR 953.7 million in the reporting period (01–06 2024: EUR 999.1 million). This development was due to declines in revenue in the AMERICAS region by 21.6% to EUR 165.8 million (01–06 2024: EUR 211.6 million) and in the APAC region by 3.3% to EUR 245.7 million (01–06 2024: EUR 254.2 million). Revenues in EMEA, on the other hand, rose slightly by 0.5% to EUR 563.9 million (01–06 2024: EUR 561.1 million). The main reason for the decline in revenue at Group level is the cyclical weakness in demand in large parts of the Automotive and Commercial Vehicles industry, which was intensified in the first half of the year by considerable trade policy uncertainties.

Accordingly, both product areas recorded declines in revenue in the reporting period. In the Automotive area, revenue fell by 4.1% to EUR 612.6 million. Revenue in the Commercial Vehicles product area declined by 5.4% to EUR 341.1 million. Despite the revenue trend, GRAMMER recorded a significant increase in operating EBIT to EUR 35.6 million (01–06 2024: EUR 29.6 million). This was mainly due to the restructuring measures initiated as part of the "Top 10 Measures" program, which increasingly took effect in the first half of 2025 and improved profitability. The operating EBIT margin improved to 3.7% (01–06 2024: 3.0%). Operating EBIT was adjusted for negative currency effects of EUR 11.4 million, income from the dissolving of restructuring provisions of EUR 1.6 million and a deconsolidation loss for a US Group company of EUR 1.5 million (01–06 2024: positive currency effects of EUR 3.3 million). Consolidated earnings before interest and taxes (EBIT) in the first half of 2025 were accordingly lower than in the previous year at EUR 24.2 million (01–06 2024: EUR 32.9 million).

Business development in the regions: EMEA stable; AMERICAS and APAC with declines in revenue

In the EMEA region, GRAMMER generated revenue of EUR 563.9 million in the first half of 2025 (01–06 2024: EUR 561.1 million) – an increase of 0.5% compared to the same period last year. Revenue in the Commercial Vehicles product area declined by 4.0% to EUR 234.3 million (01–06 2024: EUR 244.0 million), mainly due to lower demand in the offroad area as a result of economic and industry-specific uncertainties. This was offset by an increase of 3.9% to EUR 329.6 million (01–06 2024: EUR 317.1 million) in the Automotive area particularly as a result of the integration of the Jifeng Automotive Interior (JAI) Group. Operating EBIT was significantly above the previous year's level at EUR 24.4 million (01–06 2024: EUR 14.2 million). The operating EBIT margin rose accordingly to 4.3% (01–06 2024: 2.5%). The increased profitability was primarily due to capacity adjustments and organizational streamlining as part of the "TOP 10 Measures" program and the conclusion of the restructuring and future-oriented collective agreement for the Amberg sites in the first quarter of 2025.

APAC recorded a 3.3% decline in revenue to EUR 245.7 million in the first half of 2025 (01–06 2024: EUR 254.2 million). The decline was mainly attributable to the higher-margin Commercial Vehicles product area, which fell by 10.5% to EUR 65.5 million (01–06 2024: EUR 73.2 million). Despite the weak economic development and a difficult sector environment, the Automotive product area remained robust with revenue of EUR 180.2 million in the first six months of 2025 (01–06 2024: EUR 181.0 million). The strong business development with Chinese manufacturers largely offset the lower demand from German OEMs in the reporting period. Operating EBIT declined to EUR 17.7 million (01–06 2024: EUR 23.7 million) due to the decline in revenues in the Commercial Vehicles area, currency effects and an unfavorable product mix, with an operating EBIT margin of 7.2% (01–06 2024: 9.3%).

Revenue in the AMERICAS region was 21.6% below the previous year's level at EUR 165.8 million (01–06 2024: EUR 211.6 million). Adjusted for currency effects, revenue amounted to EUR 171.0 million. In the Automotive product area, revenue declined by 26.1% to EUR 109.6 million (01–06 2024: EUR 148.4 million). In the Commercial Vehicles product area, revenue fell by 11.1% to EUR 56.2 million     (01–06 2024: EUR 63.2 million). The previous year's figures were adjusted for the activities of the TMD Group, which was sold and deconsolidated in September 2024. Due to ongoing ramp-up costs for the new commercial vehicles plant in the US and inefficiencies in production, operating EBIT was negative at EUR –0.2 million in the first six months (01–06 2024: EUR 3.0 million). The operating EBIT margin was –0.1%, a deterioration of 1.5 percentage points compared with the same period of the previous year.

Jens Öhlenschläger, CEO of GRAMMER AG: "In the first half of 2025, we saw the first positive effects of the 'Top 10 Measures' program despite a market environment that remained very challenging. Macroeconomic and industry-specific uncertainties continue to weigh heavily on business development and make forecasts difficult. This makes it all the more important that we focus on what we can control ourselves. The improvement in our operating profitability despite declining revenues shows that we are on the right track. We will systematically continue with the program in the second half of the year in order to strengthen our company in the long term and emerge from this difficult phase in a more robust position."

Change in the Executive Board

With the appointment of Kelvin Wang as a member of the Executive Board, GRAMMER has also filled the position of Chief Financial Officer (CFO) at the end of the first half of 2025 and secured it for the long term. Mr. Wang has many years of experience in the automotive industry and extensive knowledge of the strategically important future market APAC. He has been with GRAMMER since August 2022, initially as CFO for the APAC region and, since the beginning of 2025, additionally as CFO EMEA.

Net assets and financial position in the first half of 2025

The GRAMMER Group's total assets decreased to EUR 1,564.6 million as of June 30, 2025 (December 31, 2024: EUR 1,699.8 million). Non-current assets declined by 3.3% to EUR 896.9 million (December 31, 2024: EUR 927.2 million). In particular, property, plant, and equipment decreased by 4.7% to EUR 460.1 million (December 31, 2024: EUR 482.5 million). Current assets decreased significantly by 13.6% to EUR 667.7 million (December 31, 2024: EUR 772.6 million).

Equity decreased by 4.9% to EUR 253.8 million as of June 30, 2025 (December 31, 2024: EUR 266.9 million). The equity ratio increased slightly by 0.5 percentage points to 16.2% (December 31, 2024: 15.7%). Non-current liabilities decreased by EUR 31.0 million to EUR 733.9 million (December 31, 2024: EUR 764.9 million). Current liabilities fell by EUR 91.0 million or 13.6% to EUR 576.9 million (December 31, 2024: EUR 667.9 million).

Outlook for the full year 2025 confirmed

For the full year 2025, GRAMMER continues to expect revenue at the previous year's level of around EUR 1.9 billion with an operating EBIT of around EUR 60 million. However, the GRAMMER Group's outlook depends heavily on the challenging economic environment and further geopolitical developments and their impact on the global economy. Risks could arise in particular from trade policy uncertainties. For example, the tariffs imposed by the US could place a considerable strain on the automotive industry and lead to disruptions in global supply chains. Although the "Top 10 Measures" program is already showing initial success in increasing GRAMMER's long-term profitability and securing its future, the company continues to expect a challenging environment as a result of the difficult macroeconomic and industry-specific conditions.

The 2025 Interim Financial Report is available on our website at https://www.grammer.com/en/investor-relations/financial-publications-presentations/quarterly-reports/.


GRAMMER Group key performance indicators

The explanation of the key figure “operating EBIT” relevant to GRAMMER can be found on page 15 of the 2024 Annual Report.

 Rounding differences in the financial figures are possible.

Company profile

GRAMMER AG, based in Ursensollen, specializes in the development and production of components and systems for car interiors as well as suspended driver and passenger seats for onroad and offroad vehicles. In the Automotive product area, the company supplies headrests, armrests, center console systems, high-quality interior components and operating elements for well-known car manufacturers and system suppliers in the vehicle industry. The Commercial Vehicles product area comprises the business areas of truck and offroad seats (tractors, construction machinery and forklifts) as well as train and bus seating. GRAMMER operates in 19 countries with around 12,000 employees. GRAMMER’s shares are listed in the Prime Standard and traded on the Munich and Frankfurt stock exchanges and the Xetra electronic trading platform.

Contact:
GRAMMER Aktiengesellschaft
Tanja Bücherl
Phone: 0049 9621 66 2113
investor-relations@grammer.com