Freudenberg posts strong key financial figures, underscores stability and future viability

PRNewswire
Bangalore (Karnataka) [India], April 1: The Freudenberg Group proves resilient amid economic and geopolitical challenges during fiscal year 2025. Strengthened by its investments, Freudenberg remains financially robust, strongly positioned for investment, and strategically capable despite the challenging conditions. During fiscal year 2025, Freudenberg achieved sales of EUR11,731.9 million. The figure was slightly below the previous year's level of EUR11,947.5 million, showing a 1.8 per cent decline.
Exchange rate effects of EUR281.6 million weighed on sales. The current effects mainly resulted from trends for the U.S. dollar and the Chinese renminbi. At EUR1,092.7 million, operating profit was somewhat below the previous year's level of EUR1,132.4 million, registering a 3.5 per cent decline. The causes were mainly lower sales volumes, negative currency effects and due diligence costs related to acquisitions, which depressed earnings. The profit margin was 9.3 per cent (previous year: 9.5 per cent). Cash flow from operating activities came to EUR974.2 million, a decline of EUR314.7 million compared to the previous year. The company's equity rate increased and stood at 57.1 per cent at year's end (previous year: 56.8 percent). In India, Freudenberg shared it has posted ₹4427 crore in sales across its group companies with operating profit in healthy double digits. The group has 8 companies operating across diverse segments such as automotive, chemical, energy, technical textiles, and cleaning products in the country. Freudenberg India emerges as a key growth engine with group sales at ₹4427 crore
Sales: EUR11.73 billion; Operating profit: EUR1.09 billion; Equity ratio: 57.1 per cent; Investments in research and development: EUR579.5 million (4.9 per cent of sales); AI-supported research: investment of about EUR200 million by 2028
Commenting on the group's annual results and its financial figures made public, Claus Mohlenkamp, Global CEO, Freudenberg Group, said: "In addition to our operating performance, we have consistently focused on financial discipline, structural adjustments and targeted investments geared to the future. With the further development of our portfolio as well as our investments in innovation, digitalization and new technologies, we are creating the foundation to position Freudenberg to be competitive and profitable for the long haul."
Commenting on the India performance, G. Sivasailam, Director & CEO, Freudenberg Regional Corporate Center India and Managing Director - Freudenberg Performance Materials India, said,"For Freudenberg group, India continues to be a strategic market with a strong focus on scale, innovation and opportunity. India presents a dynamic ecosystem that leverages technological expertise coupled with strong local agility. We are keen to expand our presence through targeted investments, advancing innovation in high-impact sectors, and building future-ready solutions.
We cannot but ignore the advancements of AI along with evolving customer needs and sustainability imperatives, we are committed to contributing meaningfully to India's industrial and economic progress."
Despite a volatile market environment, Freudenberg, responded to this environment with targeted investments in innovation and future technologies, structural and operational adjustments, and the systematic management of its portfolio, in part with acquisitions in medical technology and the food industry. In research and development for the fiscal year 2025, Freudenberg invested EUR579.5 million in research and development (previous year: EUR604.4 million). Spending on research and development represented 4.9 per cent of sales (previous year: 5.1 percent). Freudenberg continues to measure the effectiveness of its innovation activities in terms of the share of new products (products younger than four years old) out of total sales. In 2025, this figure rose to 31.5 per cent (previous year: 30.8 per cent). The company is especially focusing on the use of artificial intelligence in research, development and production to accelerate innovation and boost the potential for efficiency. By 2028, the Group will have invested about EUR200 million in AI-supported research.
About Freudenberg India:
Freudenberg has held business ties with companies in India for more than 90 years. The Group has 11 production sites around India, across several different industries, and employs around 3,000 people at 20 + locations. For more information, do visit www.freudenberg.com/company/locations/freudenberg-in-india.
About the Freudenberg Group:
The Freudenberg Group is a global technology group that strengthens its customers and society long-term through forward-looking innovations. Together with its partners, customers, and research institutions, the Freudenberg Group develops leading-edge technologies and excellent products and services for about 40 market segments and for thousands of applications: seals, vibration control components, technical textiles, filters, cleaning technologies and products, specialty chemicals, medical products, and e-mobility solutions. Innovation strength, strong customer orientation, diversity, and team spirit are the cornerstones of the Group. The 177-year-old company lives by its core values: commitment to excellence, reliability and proactive, responsible action. In 2025, the Freudenberg Group employed approximately 51,000 people in some 60 countries worldwide and generated sales of more than EUR11.7 billion. For more information, do visit www.freudenberg.com
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Editor's Note: The annual results performance from Freudenberg Group in 2025 showcases resilience despite a complex global environment, balancing marginal declines in sales and profit but with strong financial discipline and sustained investment in innovation. Notably, India continues to emerge as a growth engine backed by scale, diversity and innovation. AI and Innovation lead the way for sustained competitiveness signalling a clear, future proof strategy. The vision is clear to focus on stability while strategically building a stronger Freudenberg for tomorrow.
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