WashTec AG is accelerating its strategic transformation into an international solutions and services provider, announcing a streamlined management structure and an extension of CEO Michael Drolshagen's contract until April 2030. The Supervisory Board's decision signals confidence in the company's strategic direction despite business and earnings performance falling short of expectations. The move aims to simplify decision-making, strengthen operational control, and enhance customer focus as the company navigates a challenging market environment.
The Management Board will now consist of two members: Michael Drolshagen as CEO and Andreas Pabst as CFO. The areas previously overseen by the Chief Sales Officer will be reorganised and integrated into overall operational responsibility. As part of this reorganisation, Arthur Wessels, a long-standing manager and industry expert within the WashTec Group, takes on global responsibility for sales and marketing. This is expected to strengthen WashTec's international market presence and drive consistent focus on customer-oriented solutions and service offerings. Additionally, middle management structures have been adjusted and streamlined to boost efficiency and speed of implementation.
These changes come as WashTec updates its outlook for the 2026 fiscal year. The company now anticipates revenue growth in the mid-single-digit percentage range, driven mainly by the Equipment and Service business lines, while the Consumables business line continues to underperform. Efficiency programs initiated earlier will be pursued consistently, but delays primarily in the first half of the year—particularly regarding the relocation of production and optimisation of installation costs—cannot be fully compensated in the current fiscal year. These delays are expected to contribute positively to earnings from the following year onward. The organisational changes will also negatively impact revenues for the current fiscal year by a single-digit million euro amount.
Consequently, WashTec has revised its earnings guidance for 2026. The company now expects a declining EBIT margin of between 8% and 9%, compared to the previous expectation of an increase in EBIT that is disproportionately higher than revenue growth. Return on capital employed (ROCE) is now projected to be below the prior year's level, against the previous guidance of an increase of 0.5 to 2.0 percentage points.
The Management Board remains convinced that the organisational changes will accelerate strategy implementation, 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 anticipates that this focus will increasingly translate into sustainable growth and improved profitability, enabling the achievement of mid- and long-term goals.
WashTec, based in Augsburg, Germany, is the leading provider of innovative carwash solutions worldwide, employing around 1,850 people with subsidiaries in North America, Europe, and other regions, and represented by independent distributors in approximately 80 countries. For more information, visit the original release on www.newmediawire.com.
