WashTec AG, the Augsburg-based provider of carwash solutions, said on September 14, 2026, that it is accelerating its strategic transformation into an international solutions and services provider while simultaneously streamlining its management structure. The move follows business and earnings performance that fell short of the company's expectations, prompting measures to simplify decision-making and strengthen operational control.

The company's Supervisory Board has extended the contract of Chief Executive Officer Michael Drolshagen until the end of April 2030, a step the company described as a clear signal of continuity and confidence in its strategic direction. The long-dated mandate runs well beyond the fiscal year covered by the revised guidance, anchoring leadership continuity through the period in which the delayed efficiency measures are expected to bear fruit. Going forward, the Management Board will consist of two members: Drolshagen as CEO and Andreas Pabst as Chief Financial Officer. The areas previously overseen by the Chief Sales Officer will be reorganised and integrated more closely into overall operational responsibility, with the aim of enabling more efficient collaboration across functions and regions. Reducing the board to a CEO-CFO pairing is the most visible structural change, doing away with a dedicated sales mandate at board level in favour of folding those duties into overall operational responsibility.

As part of the reorganisation, Arthur Wessels, described by the company as a long-standing manager and proven industry expert within the WashTec Group, is taking on global responsibility for sales and marketing. WashTec expects the appointment to strengthen its international market presence and reinforce a consistent focus on customer-oriented solutions and service offerings. Middle management structures have also been adjusted and streamlined, meaning the changes span every management layer, from board composition down to middle management.

The changes also affect WashTec's outlook for the 2026 fiscal year. The company now anticipates revenue growth in the mid-single-digit percentage range, driven mainly by the Equipment and Service business lines, while the Consumables business line is not yet meeting expectations. Efficiency programs will continue, but delays from the first half of the year—particularly regarding the relocation of production and the optimisation of installation costs—cannot be made up within the current fiscal year. Those measures are expected to contribute positively to earnings from the following year onwards. In addition, the organisational changes will weigh on 2026 revenues by a single-digit million euro amount. In effect, 2026 absorbs both the delays and the cost of the reorganisation, while the efficiency agenda is positioned as a contributor from 2027.

As a result, WashTec has revised its 2026 earnings guidance. The company now expects a declining EBIT margin of between 8% and 9%, compared with its previous expectation of an increase in EBIT disproportionately higher than revenue growth. Return on capital employed (ROCE) is now expected to come in below the prior year's level, rather than rising by 0.5 to 2.0 percentage points. The revision reverses the expected direction of both profitability metrics.

The Management Board said it is convinced that the organisational changes will accelerate strategy implementation with optimal capital allocation. Clear lines of responsibility, short decision-making processes, and a consistent customer-centric approach are expected to strengthen the company's ability to capitalise on opportunities and implement changes successfully. This focus is anticipated to translate into sustainable growth and improved profitability, enabling WashTec to achieve its mid- and long-term goals. Against that backdrop, the markers to watch are concrete: whether the delayed efficiency measures begin contributing in 2027 as planned, whether the Consumables line returns to expectations, and how the single-digit million euro revenue impact from the reorganisation is absorbed over the course of the year.

WashTec Group employs around 1,850 people worldwide and operates its own subsidiaries across its North America, Europe, and Other segments. The group is also represented by independent distributors in around 80 countries. The announcement was distributed via NewMediaWire.