Bad Neustadt a. d. Saale. The persistently difficult situation in the automotive industry continued to weigh on the Preh Group’s business performance in 2025. At around €1.48 billion, revenue was 4% below the previous year’s figure of €1.53 billion and approximately 3% below target. EBIT also fell short of expectations at €106.5 million, coming in 10% below target.
The fact that the Preh Group was able to secure its overall profitability and close the financial year with a positive result was achieved in particular through the positive performance of the locations in the NAFTA and China regions.
Another factor contributing to the stabilization of the earnings situation was the restructuring program launched in 2024.
By cutting around 900 jobs worldwide – 420 of them at the Bad Neustadt site – Preh was able to reduce personnel costs in 2025 by around €37 million compared with 2024. Nevertheless, Preh once again recorded a loss at its headquarters in Bad Neustadt in 2025.
“Without the consistent implementation of our restructuring, we would not have been able to successfully close the year 2025,” explains CEO Zhengxin “Charlie” Cai. “These painful measures were unavoidable to ensure the company’s financial stability in a declining market environment. At the same time, the continued strong order book, with numerous new projects secured, shows that Preh is well positioned both technologically and strategically. However, looking at our real sales figures, the units previously planned by the automakers are not reached at all. We are about 30% below the volumes of the original business awards.”
For Preh GmbH, however, the situation remains tense. The number of employees in Bad Neustadt fell from 1,585 at the end of 2024 to 1,224 at the end of the past financial year. In view of the persistently difficult industry conditions – exacerbated by geopolitical uncertainties in the Middle East, rising material costs and increasing risks in the supply chains – Preh also anticipates a challenging market environment for 2026. To secure its competitiveness in the long term, the company is therefore considering further restructuring measures. No concrete decisions have been made yet, but further job cuts may also be part of it.
“We must continue to adapt our structures to the changed market conditions,” said Cai. “Our goal remains to position Preh for long-term stability and competitiveness.”
Despite the current challenges, a strong pipeline of new projects underscores the resilience of the Preh Group and secures the foundation for future growth.
