Preparation for business picking up

The economic conditions were also reflected in incoming orders in 2024. At 6.1 billion euros, it was around 4.9 percent below the previous year's figure. This means that the decline was already significantly lower than in 2023. Bosch Rexroth expects order intake and sales to stabilize overall in the current fiscal year. With a view to future growth, the company is continuing to make targeted investments in new buildings, systems and research and development, thereby supporting its long-term growth strategy. At the end of 2024, Bosch Rexroth employed around 32,600 associates worldwide.

“2024 was a challenging year, as expected. We are currently seeing that the situation is stabilizing and are already working on being prepared for when the business picks up. We are looking ahead and want to emerge from this phase stronger than before in order to remain successful even in a difficult environment,” says Dr. Steffen Haack, CEO of Bosch Rexroth.

The longer-term measures with which Bosch Rexroth is counteracting the economic weakness worldwide and adapting to the structural changes in the market environment include, for example, the bundling of activities at locations in China, America and Germany, as well as adjustments in production, development, administration and sales.

In China, Bosch Rexroth now manages the activities of the product divisions much more independently. This enables the team in Bosch Rexroth's third-largest market to act more quickly and develop, produce and sell products that are specially tailored to local requirements.

In the Factory Automation division, Bosch Rexroth is focusing its global sales activities more strongly on future-oriented industries such as the production of batteries, semiconductors and consumer goods.

Sales lower in all main markets

At 6.5 billion euros, sales were 13.6% below the previous year's figure (2023: 7.6 billion euros). Adjusted for exchange rate effects, the decline in sales amounted to 12.9%. The sharpest decline in sales (around 19 percent) was in Germany and Europe. Bosch Rexroth generates around half of its revenue in this region. In North and South America, sales were around 13 percent below the previous year's figure. In the Asia/Pacific/Australia region, sales fell by just under one percent overall - however, the 4.9 percent decline in China, Bosch Rexroth's third largest market worldwide, was not fully offset by the positive business developments in India (+10.2 percent) or Malaysia (+39.7 percent), for example, due to their significantly lower business volume.

Incoming orders: lower decline than in the previous year

Incoming orders amounted to around 6.1 billion euros in 2024. This is around 300 million euros or 4.9% less than in the previous year. The decline is therefore significantly lower than in 2023, when it amounted to 13.1%. The improvement in values over the course of 2024 indicates a stabilization at a lower level in 2025. However, in view of the global economic environment, which continues to be characterized by uncertainty, customers are often still using their inventories and remain cautious when making investment decisions.

Outlook for 2025: stabilization and focus on growing business

“In the current fiscal year, we are currently seeing first signs of stabilization. Consistent cost reductions and a high degree of flexibility remain necessary in the current economic and political environment,” says Holger von Hebel, CFO of Bosch Rexroth.

At the same time, the company is continuing to make targeted investments in its global production network and in important future fields such as digitalization, artificial intelligence and hydrogen technologies. “With continuously improved products, solutions, and services, we support our customers in achieving economic success and acting more sustainably, even in difficult times. We are Ready when business picks up again and our customers start to invest more,” says Haack.

Targeted investment in research and development

Bosch Rexroth adjusted its own investment volume to the situation in 2024 and, at around 270 million euros, brought it back to the level of 2022 after the previous year's record figure. The focus in 2024 was on investments in production and logistics buildings at existing locations in Germany, North America and Romania. With around 460 million euros for longer-term investments in research and development, the ratio is 7%. These targeted investments and the high level of commitment to research and development, even in a difficult environment, underline the company's confidence that the business will recover and remain stable in the long term.