International. Bosch pointed to efforts to strengthen competitiveness and growth in fiscal 2024 through strategic portfolio decisions involving both acquisitions and divestitures, adding that the company also had to make certain structural adjustments.
The company reported that it generated sales revenue of 90.5 billion euros in 2024, according to preliminary figures. In nominal terms, this is a 1% year-on-year drop, and roughly on par with the previous year when adjusting for exchange rate effects. This equates to an EBIT margin from operations of 3.5%.
"Despite our best efforts, Bosch was also not completely immune to economic developments, but we performed respectably compared to 
our industry peers," said Stefan Hartung, chairman of the board of management of Robert Bosch GmbH, referring to the company's published preliminary business figures. "Our technologies for mobility and the homes of the future remain key growth areas for us."
In addition to the weak growth of the global economy, the development of the Bosch Group's business was negatively affected by the fact that growth markets such as electromobility developed much more slowly than expected. The lack of sales in these areas and the consequent underutilized capacity, as well as the high initial expenses on future technologies and the forecasts for the necessary strategic adjustments, had a negative impact on the results. Despite all the challenges, Bosch continues to rigorously pursue its ambitious business goals: by 2030, the company aims to be one of the leading suppliers in its business areas in key markets. In addition, the company aims for an average annual growth of between 6 and 8 percent, with a margin of at least 7 percent.
Portfolio management for greater business opportunities
Bosch has consistently implemented its 2030 Strategy and has achieved important milestones. One of them is the planned acquisition of Johnson Controls and Hitachi's HVAC business, worth about $8 billion. With the purchase of this business, Bosch intends to expand its presence in growth markets such as the United States and Asia. "Despite the current obstacles, we are rigorously pursuing our growth strategy and will continue to resolutely drive forward crucial technologies for tomorrow's world," said Hartung. With the successful sale of much of the security and communications technology product business of its Building Technologies division, Bosch will focus on the systems integration business in the future. With these moves, the company aims to achieve a better balance between its business sectors, improve its robustness and make its portfolio viable for the future.
Solutions "Invented for Life"
To achieve its growth goals, Bosch is driving innovation in areas of future importance. "Electromobility, hydrogen and sustainable technologies continue to be a growing business and the focus of our innovations," Hartung said, referring to the current challenge of climate change. He gave as an example a cryogenic pump that Bosch is currently testing in the U.S., which compresses up to 600 kilograms of liquid hydrogen per hour. In just 10 minutes, such a pump will allow trucks to be filled with enough hydrogen for the next 1,000 kilometers. Bosch is also a leader in the home appliance sector. In just a few weeks, it will introduce an energy-efficient built-in XXL fridge-freezer, which will be the world's first appliance capable of being connected independently of the manufacturer via the new Matter standard. Around 5,000 Bosch AI experts are working to make artificial intelligence suitable for everyday use, such as a new AI-assisted emergency call service that allows elevator users to request help in their native language using simultaneous translation, but does not require the modernization of elevators.
Artificial intelligence powers the core business
Intelligent software and digital services have become an important pillar for Bosch's core business. "We are increasingly using AI in our own processes, improving quality and productivity in both our plants and offices," says Hartung. "AI has also become an integral part of our products and solutions." Bosch expects to generate sales of more than €6 billion with software and services by the beginning of the next decade, two-thirds of them in the Mobility business area. "At Bosch, AI has been playing an important role in assisted and automated driving for years," says Hartung. "But it is not only in AI that we are advancing software-defined mobility, and this makes Bosch an ideal partner for the world's leading technology players." An example is the Vehicle Motion Management system solution. Among other things, this enables brake-by-wire braking systems, in which an electronic brake pedal operates without a mechanical connection.
Competitiveness for a strong Europe
Bosch is looking for new policy frameworks in Germany and the EU to stimulate growth. According to Hartung, action is needed to strengthen their competitiveness and attractiveness as places to do business. "A strong EU is about less regulation and more investment, as well as fewer barriers and more market liberalization," he said. Considering energy prices, bureaucracy and a lack of investment in infrastructure in Germany, the company's home market, Hartung expects to see a quick shift from words to action after the country's upcoming elections. "Anything that makes it easier to do business is a step in the right direction," he said. "Then Germany and Europe will also be able to be among the world's economic and technological leaders in the future." As before, Bosch wants to do its part in this: In the coming year, approximately 40 percent of the company's global investments will continue to go to its German locations.
Market developments affecting sales
The sales figures for Bosch's business sectors clearly reflect the overall market trend. "Overall, 2024 was an outlier year, as all our target markets performed poorly at the same time," said Markus Forschner, member of the board of management and CFO of Robert Bosch GmbH. With a turnover of 55,900 million euros, the Mobility sector reached approximately the level of the previous year. Despite the market downturn, turnover remained largely unchanged after adjusting for exchange rate effects. In the Industrial Technology sector, turnover reached €6.5 billion, down 13 percent year-on-year in nominal terms, or -12 percent after adjusting for exchange rate effects. The weakness in the mechanical engineering sector particularly affected the main markets of Europe, China and the United States. In the Consumer Goods sector, turnover grew by 2 percent nominally to 20,300 million euros. In fact, adjusted for exchange rate effects, this figure was 3% higher than the previous year. In this way, Bosch is once again growing in the consumer goods business, for the first time since the fall in demand at the end of the coronavirus pandemic. Turnover in the Energy and Construction Technology business area amounted to €7.5 billion, a decrease of 3 percent, both in nominal terms and after adjusting for exchange rate effects. This was mainly due to pessimism in the European heating market.
Business evolution in 2024
In addition to changes in the market, the economic situation affected to a greater or lesser extent the regional evolution of sales revenues. "The economic situation particularly affected our European business," Forschner explained. Sales revenue in Europe amounted to €44.5 billion, representing a year-on-year decrease of 5 percent in nominal terms and after adjusting for exchange rate effects. Developments in North America and China meant that sales revenue growth in the Americas and Asia Pacific was also moderate. In North America, sales revenue grew by 5% to €16 billion. Sales revenue in South America amounted to €1.8 billion. This represents a nominal increase of 6%, or 12% adjusted for the exchange rate. In Asia Pacific, sales revenue grew to €28.1 billion. Nominal growth was 1 per cent, or 3 per cent after adjusting for exchange rate effects.
As of December 31, 2024, the Bosch Group had 417,900 employees worldwide, which is almost 3% less than the previous year (-11,500). In Europe and Asia, important regional changes took place. Also in Germany, the workforce fell by around 3% (-4,400), to just over 129,800 employees.
Outlook for 2025
The Bosch Group also anticipates a very demanding environment for the current year. "Globally, we expect growth to remain subdued," Forschner says. "We don't expect the global economy to rebound before 2026." In the current situation, Bosch assumes that the economy will grow by only 2.5% in 2025. To implement its growth strategy, the company remains focused on its financial goals. "Even in the face of persistently adverse conditions, we want to continue to improve our sales and results in fiscal 2025," says Forschner. In his opinion, only profitable growth will allow the company to continue its solid and significant development. Consequently, Bosch aims to reach its margin target of 7% by 2026. The aim is to further increase competitiveness at all levels, from attractive products and acceptable costs to structures suitable for a future-proof portfolio. "Sensible savings and targeted investments ensure that we have the necessary room for manoeuvre," says Forschner, but warns that it will not be easy. Such a plan will require a great deal of effort and does not exclude painful decisions.
