EDAG, the Switzerland-based engineering services firm, announced a 13% drop in revenue for 2025, reporting EUR 714 million in sales for the full year. That figure marginally exceeded the consensus of EUR 710.38 million from four analysts.
The company recorded a negative adjusted EBIT of EUR -12.90 million for the period, corresponding to an adjusted EBIT margin of -1.80%. Management said the loss reflected the combined effect of restructuring costs and underutilization across operations.
EDAG attributed the fall in revenue to a persistently challenging environment in the automotive sector and to customers' reluctance to invest, which reduced both revenue and order intake. The company said those conditions hit its Vehicle Engineering and Electrics/Electronics segments, where earnings were lower as a result of decreased revenue and underutilization in the mobility business.
The Production Solutions segment was notably affected by a EUR 15 million impairment charge related to a major project, a single-item hit that weighed on adjusted EBIT performance for the year. Full-year order intake totaled EUR 688 million as EDAG navigated the difficult operating conditions.
During the year the company accelerated diversification and restructuring initiatives intended to reduce costs and improve operational efficiency. Looking to 2026, EDAG projects revenue to develop within a corridor of around +/- 5% and expects to return to positive adjusted EBIT of up to roughly 3%.
Beyond next year, EDAG has set a mid-term objective of achieving an adjusted EBIT margin in the 6-8% range within five years as it seeks to restore profitability and adapt to changing conditions in the automotive market.
Context and implications
- Revenue and orders: Revenue for 2025 stood at EUR 714 million, with full-year orders of EUR 688 million.
- Profitability drivers: Adjusted EBIT was negative EUR 12.90 million, reflecting restructuring, underutilization and a EUR 15 million impairment in Production Solutions.
- Guidance and targets: For 2026 the company expects revenue within about +/- 5% and an adjusted EBIT up to around 3%; a mid-term adjusted EBIT margin target of 6-8% is set for the next five years.
EDAG's results underscore the sensitivity of engineering service providers to investment cycles in the automotive industry and to project-specific impairments. The company is pursuing cost reduction and diversification measures to counter lower demand and to improve utilization across its mobility-related operations.