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Supplier Bosch sticks to outlook despite slow auto production
Weaker-than-expected EV demand weighs on profitability
(Bosch Group)
Key Takeaways:
- Robert Bosch reaffirmed its 2026 outlook after first-half revenue rose 3.6% to $53 billion, helped by its recently acquired heating and cooling business.
- Bosch's automotive division weighed on results as weaker vehicle production and slower-than-expected EV adoption narrowed the company's operating margin to 4.6%.
- Bosch maintained forecasts for 2% to 5% sales growth and a 4% to 6% operating margin after cutting more than 6,500 jobs.
Robert Bosch GmbH reaffirmed its full-year outlook after first-half sales rose, even as stagnating automotive production and weaker-than-expected electric-vehicle demand weighed on profitability.
Revenue increased by 3.6% to 46.4 billion euros ($53 billion) in the first six months of the year, lifted by its recently acquired heating and cooling business, according to a Bosch statement Sept. 23. The German engineering firm kept its 2026 forecasts for sales growth and operating margin.
READ MORE: Bosch CEO Stefan Hartung steps down
Bosch’s automotive weakness reflects a broader squeeze on the global auto industry. Carmakers are cutting production and investment as demand softens, China’s domestic brands intensify competition and the shift to EVs proves slower and more expensive than many suppliers had planned for.
Volkswagen AG, Europe’s biggest carmaker and a major Bosch customer, last week slashed its profit forecast after a sharp contraction in China and said faster-than-expected growth of EV sales in Europe is holding back profitability.
Battery-powered models generally have lower margins than comparable combustion-engine vehicles, meaning the quicker shift in the sales mix is diluting earnings even as EV demand strengthens.
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Bosch’s Mobility division, which manufacturers auto parts, was the main drag in the first half, with sales slipping and the unit’s margin dwindling. Bosch took 270 million euros of impairments on production equipment because the EV rollout is lagging expectations.
The company said its overall operating margin narrowed to 4.6% from 5.1% in the six months through June. Its full-year outlook includes sales growth in a range of 2% to 5% and an operating margin of 4% to 6%. It cut more than 6,500 jobs in the first half, including about 4,000 in Germany.
