Supplier Bosch Expects a Difficult Business Year—and Growth

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Profit at Bosch slumped in 2024. Now, US tariffs are adding to the situation. Nevertheless, the supplier expects sales growth of one to three percent this year and anticipates further job cuts.

The Bosch Group generated 90.3 billion euros (approx. 101.5 billion USD) in 2024, 1.4 percent less revenue than in the previous year, a currency-adjusted decline of 0.5 percent. The operating result before financial result and taxes (EBIT) amounted to 3.1 billion euros (approx. 3.5 billion USD, 2023: 4.8 billion euros or approx. 5.3 billion USD), a drop of more than one-third. Ultimately, 1.3 billion euros remained (approx. 1.4 billion USD, a decrease of 49.5 percent). The operating EBIT margin was 3.5 percent.

"In the 2024 fiscal year, we were able to achieve significant improvements in costs, structures, and portfolio," said Stefan Hartung, Chairman of the Management Board of Robert Bosch GmbH, on the occasion of the financial statement presentation. "We are sticking to our ambitious goals to continue growing and strengthen our financial independence. Our 2030 strategy provides us with guidance, especially during global turbulence, so that we can be among the leading three providers in our core markets in no more than five years."

On average, Bosch aims for annual growth of six to eight percent by 2030, with normal inflation rates of two to three percent. In the first quarter of 2025, the supplier was able to increase its revenue by four percent in euros as well as currency-adjusted compared to the previous year's value. For 2026, the Bosch Group continues to keep a target margin of seven percent in sight. Hartung sees this as an extremely challenging task given the global upheavals and especially the significantly stronger competition from Asia: "We will continue to work intensively on costs and structures and focus on profitable business areas."

Bosch Anticipates Further Job Cuts

Bosch has already announced structural adjustments and job cuts in various areas to strengthen the company's competitiveness. To this end, Bosch is in discussions with employee representatives and is urging a quick agreement to begin implementation. Hartung: "Only then can we create the conditions to seize short-term opportunities in a dynamic market environment. We can no longer afford any delays, as this further weakens our position in the competition." Bosch overall expects the number of jobs in the company to continue to decrease, particularly in Germany and Europe. At the end of December 2024, Bosch employed about 417,850 people, which was 2.7 percent or nearly 11,600 fewer than a year earlier.

Fiscal Year 2025: Growth Opportunities Despite Uncertainties

In view of the volatile developments in world trade, Bosch sees the outlook for the current year as being associated with high uncertainties. The consequences of additional tariffs and possible economic effects from European and German infrastructure packages also complicate the assessment. For the current year, Bosch still expects moderate growth of the world economy, ranging from 2.25 to 2.75 percent. "We must work even harder on competitive costs and will advance our growth strategy through investments, innovations, and acquisitions," said Markus Forschner, Managing Director and CFO of Robert Bosch GmbH. "We will continue to expand our successful regionalization strategy. Remaining close to the customer remains important to us."

This year, despite a persistently difficult environment with weak core markets, Bosch aims for organic revenue growth of between one and three percent. The operating EBIT margin is expected to improve significantly compared to 2024, even though further results burdens are anticipated from high preliminary expenditures for future technologies and structural adjustments. If the planned acquisition of parts of the business from Johnson Controls and Hitachi is completed by mid-year, according to Forschner, the total revenue in 2025 could even be one to two percentage points higher. The full-year consolidation will then occur for the first time in the 2026 fiscal year.

In response to the US tariff policy, Bosch CEO Hartung said he expects more clarity only late in the second half of the year. Until then, one must wait to see which deals would be made. The new situation will definitely be different than before—and will incur additional costs. "The year will be extremely difficult to predict." He is not completely certain that the outcome will be successful figures. Many external effects will "hit" Bosch. However, he hopes for a better year than 2024.

Mobility: Innovations in Software and Hydrogen

In the Mobility sector, Bosch expects significant growth impulses from developments in electromobility, hydrogen, and software-defined vehicles. "The future of mobility will be determined by software—and we want to continue to be at the forefront as a partner of manufacturers," emphasized Hartung. At the Auto Shanghai industry trade fair, Bosch recently presented a whole range of innovations, including a driver assistance modular system in three variants—for the entry-level segment, the mid-range, and the luxury class—and a cockpit vehicle computer with AI functions.

In electromobility, Bosch is launching series production with an additional 50 projects this year, particularly in Europe and China. "An important future technology is the hydrogen engine," explained the Bosch CEO. "This drive emits no local CO₂ and is particularly suitable for heavy off-road trucks as well as powerful construction and agricultural machinery." By 2030, the company expects billion-dollar revenue in this market.

250 Million Euros Investments in Start-Ups

To successfully emerge from the current changes in markets and technology, Bosch wants to rely on its strengths. Last year alone, Bosch filed more than 6,700 patents, making it one of the 100 most innovative companies worldwide according to the analyst firm Clarivate. The company also seeks to secure significant growth impulses through collaboration with start-ups. As one of the largest corporate investors in Europe, the Bosch Group announced a new venture capital fund: its subsidiary Bosch Ventures is providing around 250 million euros (approx. 281 million USD). "Investments in start-ups promote technological progress in the economy and society on one hand, and on the other, our business areas also benefit from the collaboration," Stefan Hartung explained the continued high commitment: "Innovations are also important drivers of a country's economic growth."

"Not Losing Sight of Climate Protection"

With regard to the new federal government in Germany, Hartung emphasized that new debts do not absolve the obligation to save wherever possible. "The billion-euro financial packages should be specifically invested in the planned reforms," urged the Bosch CEO. Despite all global turbulence, climate protection must not be overlooked, as the Bosch Group illustrates with the announcement of new Scope 3 targets: According to Hartung, by 2030, CO₂ emissions outside the direct sphere of influence, for example from product use, should decrease significantly. Regardless of its growth targets, Bosch intends to double its corresponding CO₂ reduction target from 15 to 30 percent by 2030 compared to 2018. "Climate change does not disappear just because the world economy currently has to deal with other challenges," said Hartung. Sustainability remains a central issue for Bosch.

With material from dpa

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