German automotive parts supplier Mahle has reported consolidated net profit of €20m ($23.5m) for 2025, down 9.1% from €22m a year earlier.
Sales fell 3.6% to €11.257bn from €11.681bn in 2024. The company attributed the decline to exchange rates and divestments.
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Excluding exchange-rate and deconsolidation effects, Mahle said organic growth was 0.6%.
Earnings before interest and taxes (EBIT) dropped to €228m from €423m the year before. The EBIT margin fell to 2% from 3.6%.
On an adjusted basis, EBIT rose to €442m from €347m. The adjusted EBIT margin increased to 3.9% from 3%.
Mahle said the 2025 EBIT comparison was mainly affected by the absence of a one-time gain booked in the prior year from the sale of shares in the joint venture Behr-Hella Thermocontrol (BHTC), worth €164m. It also cited special items including restructuring expenses.
The group said it further reduced net debt and increased its equity ratio.
In its press statement, Mahle said weaker customer demand and lower vehicle production weighed on sales in its key markets of Europe and North America.
It pointed to sluggish US truck demand and said electrification in Europe “continues to fall well short of expectations”.
The company added that changes in consolidation after selling joint venture shares and product divisions also reduced sales.
By business unit, Powertrain and Charging posted €3.9bn in sales and, adjusted for currency effects, rose 1.9%. The division includes the former Engine Systems and Components as well as Mechatronics and Electronics units.
Thermal and Fluid Systems unit generated €6.1bn in sales. This unit comprises the former Thermal Management plus Filtration and Engine Peripherals operations.
The spare parts and service business delivered €1.2bn in revenue. After adjusting for exchange rates, sales in this unit grew 1.7%.
Regionally, Mahle reported lower sales in Europe and China, while North America, South America and East Asia grew.
India was the “fastest-growing” region, with a currency-adjusted increase of more than 20%, the company said.
Mahle spent €607m on research and development in 2025. It filed 361 new patents and submitted 497 invention reports, with around 70% of patent applications linked to electrification.
The company said it won new orders from OEMs during 2025 representing average annual sales of €1.9bn.
Amid declining or stagnating markets, Mahle said it continued to adjust its global production footprint.
It closed or sold sites, particularly in Europe and North America, initiated closure processes elsewhere, and reduced headcount at several locations.
At the end of 2025, Mahle had 64,242 employees worldwide, down 3,466 people, or 5.1%, year on year.
