Foreword of annual report

Disruption, unpredictability, uncertainty. These were the challenges that defined the 2025 fiscal year. We are prepared to tackle these conditions — and compete with strong players from every region of the world. Our ambition is clear: to be among the leading players in the markets that matter to us — backed by innovative solutions, competitive structures, and sustainable differentiation.

Meeting these challenges requires decisive action. Technological disruption is fundamentally transforming our markets and forcing us to make considerable adjustments. In particular electromobility, electrification, and continued digitalization and automation coupled with artificial intelligence require our full attention across many areas of our business. These developments also create opportunities. Unlocking them, however, requires considerable upfront investment in new business fields and a consistent realignment of the Bosch Group to evolving market conditions. What makes this technological disruption even more demanding is unpredictability. Change rarely follows a straight path. It veers left and right – much like the development of fully automated driving. Only a few years ago, there was great euphoria. This was followed by sobering assessments of the costs involved and the development effort needed. Now, advances in generative artificial intelligence could once again accelerate progress. Electromobility is also advancing at completely different speeds around the world – significantly more slowly in Europe and North America than in China. Unpredictability also means uncertainty. In 2025, the uncertainty was intensified substantially by the effects of new U.S. tariffs and other trade barriers. At the same time, many international markets continue to struggle with weak demand, and it remains unclear when they will recover.

In these volatile conditions, our task is to stay true to our ambition to take the lead in our relevant markets. A major milestone in 2025 was the completion of the acquisition in the heating, ventilation, and air-conditioning business. This move strengthens our global presence in this field. We are also sharpening our focus in the Building Technologies division. We divested significant parts of the product business and realigned the division. At the same time, we have worked intensively to improve our competitiveness and introduced further significant structural adjustments. These efforts also require extensive personnel measures, particularly in Germany and in the Mobility business sector. Global automotive production has declined significantly since its peak in 2017. A recovery is not expected in the foreseeable future. Europe in particular has some catching up to do and must adapt in view especially of intensified competition and price pressure from strong Chinese suppliers.

In addition to weak economic conditions, new tariffs, and upfront investments in future technologies and markets, the overall structural and personnel adjustments have weighed heavily on earnings in 2025. We therefore cannot be satisfied with our earnings performance in 2025. However, we expect the measures we have introduced to start having a positive impact as early as 2026, even if the economic outlook remains subdued. Based on our innovations and acquisitions, we are confident that the Bosch Group has good opportunities for continued successful development. This confidence is also reflected in the title of our annual report: “For Tomorrow. Today.” The report provides details of our business performance and the Bosch Group’s strategic priorities.

We would like to thank our more than 400,000 associates worldwide for the commitment with which they are tackling these major challenges. Our thanks also go to our business partners and customers around the globe who are accompanying us on our ambitious journey, as to you, our readers, for your interest in our company and this annual report.

With best regards,

Dr. Stefan Hartung
Chairman of the board of management