German conglomerates record a third consecutive year of profit decline
Germany’s largest conglomerates continue to experience an economic downturn: in 2025, profits of companies in the DAX index fell by 4%, according to consulting firm EY. This marks the third consecutive year of declining revenue for these companies.
The automotive sector was hit the hardest, with BMW, Mercedes, and Volkswagen reporting a combined profit drop of approximately 31% compared to the previous year. Experts highlight that German industry is losing ground in key markets, especially in China, where increased competition and lower sales have taken their toll. Revenues in Asia decreased by 9%, in North America by 4%, while growth persists only in Europe.
The railway giant Deutsche Bahn closed 2025 with a loss of €2.3 billion, €500 million more than the previous year. The main cause is outdated infrastructure causing train delays and reducing income. Train punctuality was only 60% in 2025.
Once symbols of Germany’s industrial strength, these conglomerates now face challenges from global competition and internal issues that adversely affect their financial health.
Given these trends, achieving stabilization will require significant investments in modernization and efforts to explore new markets to restore competitiveness.
