Robert Bosch GmbH expects to hit its financial targets for the current year despite a string of headwinds, CEO Stefan Hartung told reporters at a robotics and automation event in Berlin. The company reaffirmed guidance for a profit margin in the 4% to 6% range and projected revenue growth between 2% and 5%.
Hartung said Bosch is taking steps to realign its automotive operations in response to a slowdown in German vehicle production and the substantial costs associated with the transition to electric vehicles. As part of that effort, the firm plans to eliminate 22,000 positions within its core automotive business. Management anticipates that the restructuring measures will improve results during the current year after restructuring-related charges weighed on performance in 2025.
"We’ve set the course to be well positioned for the next phase," Hartung said regarding the company's strategic adjustments. He also emphasized that the operating environment remains difficult, noting persistent market challenges.
In discussing risks, the CEO highlighted uncertainty stemming from the war in the Middle East and its possible repercussions for supplies of materials used in semiconductor production, citing helium as an example of an input that could be affected. Hartung described these developments as additional risk factors while reiterating that Bosch is fundamentally well-positioned to achieve its targets under current conditions.
Bosch pointed to a more optimistic top-line outlook than some peers, with its revenue growth projection described as stronger than the guidance issued by competitors Schaeffler and ZF. The company's margin forecast, if realized, would represent a multiple of the prior year's result.
Summary
Bosch is maintaining its annual financial guidance - a 4% to 6% profit margin and 2% to 5% revenue growth - while implementing a 22,000-job reduction in its core automotive unit. Management flagged supply risks tied to the Middle East conflict as a potential threat to raw materials for semiconductors but said the company is positioned to meet its goals.
Key points
- Bosch confirms margin guidance of 4% to 6% and revenue growth of 2% to 5% for the year.
- The company will cut 22,000 roles in its core automotive business amid lower German vehicle production and high costs from the shift to electric vehicles.
- Management cites potential supply disruptions to semiconductor inputs due to the Middle East conflict as an added uncertainty.
Risks and uncertainties
- Escalation of the Middle East conflict could disrupt supplies of materials used in semiconductor manufacturing, affecting production inputs.
- Slower German car production and the cost burden of electrification may continue to pressure the automotive supply sector.
- Restructuring charges have already impacted reported performance in 2025 and could influence near-term results if additional costs arise.