By Amir Orusov and Ilona Wissenbach April 16 (Reuters) - Bosch, the world's largest car parts supplier, said on Thursday it expected higher sales and profitability in 2026, counting on investments in
Bosch targets higher sales and margin carried by tech investments, job cuts
Bosch's Financial Outlook and Strategic Initiatives for 2026
(Corrects paragraph 2 to say operating profit margin in 2025 was 2.0%, not 1.8%)
By Amir Orusov and Ilona Wissenbach
Sales Growth and Profit Margin Forecast
April 16 (Reuters) - Bosch, the world's largest car parts supplier, said on Thursday it expected higher sales and profitability in 2026, counting on investments in new technologies and positive effects from structural measures, including job cuts.
The German group forecast sales growth of between 2% and 5% for 2026, up from a 0.7% rise last year. It expects its operating profit margin to rise to between 4% and 6%, compared with 2.0% in 2025.
CEO’s Vision and Technology Investments
Bosch CEO Stefan Hartung struck an optimistic note, saying the company was positioning itself for profitable growth by investing in key technologies.
"We are committed to shaping the trends of automation, digitalization, electrification, and artificial intelligence," Hartung said in a statement, describing 2026 as a "year of progress".
Research and Development Expenditure
This strategy is reflected in continued heavy investment. Last year, Bosch paid some 12 billion euros ($14 billion) in research and development costs and capital expenditures. It said upfront investments in areas of future importance would remain at a similarly high level in the coming years.
Market Comparison and Industry Challenges
The annual targets appear upbeat against German rivals Schaeffler, Continental and ZF Friedrichshafen, which have guided for broadly stable 2026 earnings due to a volatile demand and market conditions.
Bosch also cautioned that the broader environment would remain challenging. It expects weak economic conditions to persist amid geopolitical uncertainty and continued pricing and competitive pressures.
First-Quarter Performance
Against that backdrop, the company's first-quarter sales were largely unchanged from last year. When adjusted for currency exchange effects, they increased by 5%.
Structural Measures and Job Cuts
Bosch has concluded talks with employee representatives over job cuts at its Mobility unit locations in Germany and will be able to carry out changes "as quickly and consistently as necessary," Hartung said.
The company had last year announced 13,000 job cuts due to significant overcapacity and a drop in demand.
Competitive Positioning
Through those reductions, Bosch aims to improve its competitive position in the face of growing price pressure.
($1 = 0.8491 euros)
(Reporting by Ilona Wissenbach and Amir Orusov, editing by Milla Nissi-Prussak)
