Finance
Bosch warns of rising cost pressure in 2026, delays margin target
Published by Global Banking and Finance Review
Posted on January 30, 2026
2 min readLast updated: January 30, 2026
Quick Summary
Bosch delays its 7% margin target to 2027 due to rising cost pressures and global tariffs, despite a slight sales increase in 2025.
Bosch Anticipates Increased Cost Challenges, Delays Margin Goals to 2027
Bosch's Financial Outlook and Challenges
FRANKFURT, Jan 30 (Reuters) - Bosch, the world's largest car parts supplier, on Friday warned of another tough year in 2026 and postponed a 7% margin target as it expects no let-up in cost and competitive pressure in a sector hit by tariffs worldwide.
Impact of Job Cuts on Margins
Bosch last year announced a further 13,000 job cuts, or around 3% of its total workforce, to protect margins and ensure it remains competitive in light of import tariffs and price declines that have hurt its business.
CEO's Insights on Industry Competition
CEO Stefan Hartung told Reuters last year that 2026 would be tough, warning the automotive industry would "remain a highly competitive sector where there will be a fight over every cent".
Sales Performance and Margin Decline
As a result, the company said it now expected to begin achieving its 7% profit margin in 2027 at the earliest, having previously forecast to hit it this year.
"There are many indications of a slight slowdown in global economic growth," Bosch finance chief Markus Forschner said in a statement. "Competitive and price pressure are likely to increase further and the increased tariffs will have their full impact for the first time."
In 2025, sales rose 0.8% to 91 billion euros, while the operating margin fell to 1.9% from 3.5%, the company said as it released preliminary results for the past year.
(Reporting by Christoph Steitz; Editing by Kirsten Donovan )
Key Takeaways
- •Bosch delays 7% margin target to 2027 due to cost pressures.
- •13,000 job cuts announced to protect margins.
- •CEO warns of intense competition in the automotive sector.
- •Sales rose slightly in 2025, but margins declined.
- •Global tariffs and economic slowdown impact Bosch's outlook.
Frequently Asked Questions about Bosch warns of rising cost pressure in 2026, delays margin target
1What is a profit margin?
A profit margin is a financial metric that shows the percentage of revenue that exceeds the costs of goods sold. It indicates how efficiently a company is managing its expenses relative to its sales.
2What are job cuts?
Job cuts refer to the reduction of a company's workforce, often due to financial pressures, restructuring, or the need to improve profitability. This can involve layoffs or voluntary separations.
3What is corporate strategy?
Corporate strategy is a comprehensive plan that outlines how a company will achieve its goals and objectives. It includes decisions about resource allocation, market positioning, and competitive advantages.
4What is the automotive industry?
The automotive industry encompasses all companies and activities involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It includes automakers, suppliers, and service providers.
