The Freudenberg Group proves resilient amid economic and geopolitical challenges during fiscal year 2025. “In addition to our operating performance, 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, digitalization and new technologies, we are creating the foundation to position Freudenberg to be competitive and profitable for the long haul,” said Claus Möhlenkamp, CEO of the Freudenberg Group.
The key financial figures for 2025 demonstrate the stability and financial strength of the Weinheim-based global technology group:
Sales: €11.73 billion
Operating profit: €1.09 billion
Equity ratio: 57.1 percent
Investments in research and development: €579.5 million (4.9 percent of sales)
Strengthened by its investments, Freudenberg remains financially robust, strongly positioned for investment, and strategically capable despite the challenging conditions.
Sales and operating profit for 2025 approached their levels for 2024, a record year, even if the same results were not fully achieved. The positive effects of acquisitions and sales price adjustments were not enough to compensate for exchange rate effects and weaker demand in important markets, especially in the automotive sector.
The numbers in detail
During fiscal year 2025, Freudenberg achieved sales of €11,731.9 million. The figure was thus slightly below the previous year’s level of €11,947.5 million, showing a 1.8 percent decline. Exchange rate effects of €281.6 million weighed on sales. The current effects mainly resulted from trends for the U.S. dollar and the Chinese renminbi.
At €1,092.7 million, operating profit was somewhat below the previous year’s level of €1,132.4 million, registering a 3.5 percent decline. The causes were mainly lower sales volumes, negative currency effects and due-diligence costs related to acquisitions, which depressed earnings.
The profit margin was 9.3 percent (previous year: 9.5 percent).
Cash flow from operating activities came to €974.2 million, a decline of €314.7 million compared to the previous year.
The company’s equity rate increased and stood at 57.1 percent at year’s end (previous year: 56.8 percent).
Once again, the ratings agency Moody’s Deutschland GmbH gave Freudenberg an “A3” rating with a stable outlook. The company continues to merit the agency’s “Single-A Rating,” confirming a high level of creditworthiness.
Market environment
In 2025, the global market environment was characterized 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.
Freudenberg responded to this environment with targeted investments in innovation and future technologies, structural and operational adjustments, and the systematic management of its portfolio, in part with acquisitions in medical technology and the food industry.
The Freudenberg e-Power Systems Business Group was organizationally dissolved on January 1, 2026. The business in battery cells, modules and systems, along with activities relating to fuel cell systems, is not continuing. On the other hand, the hydrogen components business remains and has been attached to Freudenberg Sealing Technologies. About 600 employees, largely in the United States, were affected by the measure.
The market for batteries and fuel cells in the United States developed much more slowly than expected. The difficulties can be traced to weak demand in the core applications, the lack of infrastructure, especially in the hydrogen segment, high costs and political and regulatory uncertainties. They were joined by global competitive pressures and limited opportunities for scaling, which especially complicated the systems business economically.
Research and development
In fiscal 2025, Freudenberg invested €579.5 million in research and development (previous year: €604.4 million). Spending on research and development represented 4.9 percent of sales (previous year: 5.1 percent).
Freudenberg continues to measure the effectiveness of its innovation activities in terms of the share of new products (products younger than four years old) out of total sales. In 2025, this figure rose to 31.5 percent (previous year: 30.8 percent).
The company is especially focusing on the use of artificial intelligence in research, development and production to accelerate innovation and boost the potential for efficiency. By 2028, the Group will have invested about €200 million in AI-supported research.
Investments
Adjusted for acquisitions, investments in intangible and tangible assets as well as investment property amounted to €456.0 million in 2025 (previous year: €501.5 million).
Freudenberg invested globally in the expansion and modernization of its facilities. Freudenberg Medical invested in a new production facility for catheters and injection-molded thermoplastic components in Costa Rica as well as in the construction of a new facility in Alsdorf, Germany.
Among other sites, Freudenberg Sealing Technologies invested in a new seal manufacturing plant in Querétaro, Mexico, and in an automated central warehouse for Corteco in Milan, USA. At its Weinheim facility, Freudenberg Sealing Technologies launched its new automated central warehouse and started building a new elastomer mixing plant that will serve the automotive and general industry sectors.
The investments in Germany amounted to €142.9 million in 2025 (previous year: €181.2 million).
Acquisitions
During the reporting year, the Freudenberg Group carried out acquisitions worth about €800 million. They included the purchase of Fuji Seiko in the medical technology field as well as acquisitions in the food industry for Freudenberg Chemical Specialities’ Capol brand. Freudenberg Home and Cleaning Solutions submitted a takeover offer to acquire all the shares of Nilfisk Holding A/S, to expand its range of professional cleaning devices, including autonomous cleaning robots.
Employees
As of December 31, 2025, the Freudenberg Group had 50,968 (previous year: 52,104) employees from 147 nations, working in about 60 different countries.
The decline in the total number of employees can be mainly attributed to restructuring measures introduced in 2025, especially at Freudenberg e-Power Systems. Despite the new hires gained through acquisitions, the total number of employees was reduced by about 1,100 over the course of the year.
