Global technology giant Bosch said it is banking on its innovative capabilities to drive growth in 2026 amid ongoing geopolitical tensions and trade barriers.
In its recent strategic update, Bosch projected sales growth of 2-5%, with an EBIT margin from operations between 4-6% for 2026.
The company said it plans to maintain its substantial investments in future technologies, having already allocated approximately EUR 12 billion (AUD 19.7 billion) to research and development and capital expenditure in 2025.
“As a global technology leader, we are committed to shaping the trends of automation, digitalization, electrification, and artificial intelligence, as this also paves the way for profitable growth in our business,” said Stefan Hartung, chairman of the board of management of Robert Bosch GmbH, during the presentation of the company’s annual figures.
Hartung emphasised that achieving these goals will depend on both cost-cutting measures already initiated and continued innovation across all business segments.
In 2025, Bosch registered approximately 6,300 patents, maintaining its position as one of Europe’s most prolific patent applicants and the leader in Germany.
The company reported sales revenue of EUR 91 billion (AUD 149.4 billion) in 2025, slightly above the previous year’s EUR 90.3 billion (AUD 148.2 billion), despite challenging market conditions. When adjusted for exchange-rate effects, this represents growth of 4.1%. However, the company’s EBIT margin from operations declined to 2%, down from 3.5% in 2024.
This reduced profitability reflects significant provisions of EUR 2.7 billion (AUD 4.4 billion) related to structural and personnel adjustments that Bosch deemed necessary to enhance its long-term viability in competitive global markets.
The tech giant recently concluded negotiations with employee representatives regarding job reductions at its Mobility locations throughout Germany.
“The negotiations weren’t easy, but both sides demonstrated a marked sense of responsibility,” Hartung said. “We are now implementing the agreed measures as quickly and consistently as necessary, but also in as socially acceptable a manner as possible.”
The workforce adjustments form part of Bosch’s broader Strategy 2030, which aims to position the company among the top three suppliers in its key markets.
According to Hartung, this ambitious goal requires not just cost control but strategic differentiation in increasingly competitive global markets.
“In international competition, it’s not just about costs, but above all about differentiating ourselves,” he explained, highlighting the company’s extensive global footprint as a significant competitive advantage. “We can adapt our offerings and supply chains to regional conditions and at the same time deliver global-level quality.”
Bosch anticipates that the weak economic conditions experienced in 2025 will persist into the current business year amid ongoing geopolitical uncertainties, particularly in the Middle East.
Despite the challenges, the company said it has managed to maintain stable performance in the first quarter, with sales holding steady at previous-year levels. Looking ahead, Bosch projects only moderate global economic growth, comparable to recent years.
