WashTec AG, the Germany-based global leader in carwash solutions, is intensifying its strategic shift from a product manufacturer to an integrated solutions and services provider. The company announced on September 14, 2026, that it will streamline its management board and organizational structure to boost efficiency, speed of implementation, and customer focus, while extending the contract of CEO Michael Drolshagen until April 2030.
The move comes as WashTec faces business and earnings performance that has fallen short of expectations. To address this, the Supervisory Board has extended Drolshagen's contract, signaling confidence in the company's strategic direction. Simultaneously, the Management Board will be reduced to two members: Drolshagen as CEO and Andreas Pabst as CFO. The areas previously overseen by the Chief Sales Officer will be reorganized and integrated into overall operational responsibility, aiming for more efficient collaboration across functions and regions.
As part of this reorganization, Arthur Wessels, a long-standing manager and industry expert within the WashTec Group, will take on global responsibility for sales and marketing. This is expected to strengthen the company's international market presence and drive its focus on customer-oriented solutions and service offerings. Middle management structures are also being adjusted and streamlined.
The organizational changes will have a negative impact on revenues for the current fiscal year, amounting to a single-digit million figure. Additionally, delays mainly in the first half of the year—particularly regarding the relocation of production and optimization of installation costs—cannot be made up for in the current fiscal year, but will contribute positively to earnings from the following year onwards. As a result, WashTec has revised its earnings guidance for 2026: the company now expects a declining EBIT margin of between 8% and 9%, compared to the previous expectation of an EBIT increase disproportionately higher than revenue growth. Consequently, ROCE is expected to be below the prior year's level, rather than an increase of 0.5-2.0 percentage points.
Overall, WashTec still anticipates revenue growth in the mid-single-digit percentage range for 2026, driven primarily by its Equipment and Service business lines, while the Consumables business line is not yet meeting expectations. The efficiency programs initiated will continue to be pursued consistently.
The Management Board believes these changes will accelerate strategy implementation with optimal capital allocation, focusing on clear lines of responsibility, short decision-making processes, and a consistent customer-centric approach. This is expected to translate into sustainable growth and improved profitability, enabling the company to achieve its mid- and long-term goals.
WashTec, headquartered in Augsburg, Germany, employs around 1,850 people worldwide and operates through subsidiaries in North America, Europe, and other regions, as well as independent distributors in approximately 80 countries. For more information, visit the original release on www.newmediawire.com.
