Freudenberg reported a slight decline in its financial performance for fiscal year 2025, with sales and operating profit impacted by currency headwinds and lower volumes.

During the year, the company recorded sales of €11,731.9 million, marginally below the previous year’s €11,947.5 million, reflecting a 1.8 per cent decline. Exchange rate effects amounting to €281.6 million weighed on sales, primarily driven by movements in the US dollar and the Chinese renminbi.

Operating profit stood at €1,092.7 million, down 3.5 per cent from €1,132.4 million in the previous year. The decline was attributed to lower sales volumes, negative currency impacts and due diligence costs related to acquisitions, which affected earnings. The profit margin was 9.3 per cent, compared to 9.5 per cent in the previous year.

Cash flow from operating activities came to €974.2 million, a decline of €314.7 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 posted INR 4427 crore in sales across its group companies with operating profit in healthy double digits. The group has eight companies operating across diverse segments such as automotive, chemical, energy, technical textiles and cleaning products in the country.  

Commenting on the group’s annual results and its financial figures made public, Claus Möhlenkamp, 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, digitalisation and new technologies, we are creating the foundation to position Freudenberg to be competitive and profitable for the long haul.”

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 (R&D) for the fiscal year 2025, Freudenberg invested €579.5 million (previous year: €604.4 million). Spending on R&D represented 4.9 per cent of sales (previous year: 5.1 percent). 

The company 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 percent (previous year: 30.8 percent). It is especially focusing on the use of Artificial Intelligence (AI) in research, development and production to accelerate innovation and boost the potential for efficiency. By 2028, the group will have invested about €200 million in AI-supported research. 

Commenting on the India performance, G Sivasailam, Director and CEO, Freudenberg Regional Corporate Centre 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.”