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 €11,731.9 million. The figure was slightly below the previous year’s level of €11,947.5 million, showing a 1.8 per cent decline. Exchange rate effects of €281.6 million weighed on sales. The current effects mainly resulted from trends for the US dollar and the Chinese renminbi.
At €1,092.7 million, operating profit was somewhat below the previous year’s level of €1,132.4 million, registering a 3.5 percent 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 percent (previous year: 9.5 percent).
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 percent at year’s end (previous year: 56.8 percent). In India, Freudenberg shared it has posted Rs 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.
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, 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 and 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 €579.5 million in research and development (previous year: €604.4 million).
Spending on research and development represented 4.9 percent 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 percent (previous year: 30.8 percent). 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 €200 million in AI-supported research.
