Finance
Bosch warns of rising cost pressure in 2026, delays margin target
Published by Global Banking & Finance Review®
Posted on January 30, 2026
2 min readLast updated: January 30, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 30, 2026
2 min readLast updated: January 30, 2026
Bosch delays its 7% margin target to 2027 due to rising cost pressures and global tariffs, despite a slight sales increase in 2025.
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.
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 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".
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 )
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.
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.
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.
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.
Explore more articles in the Finance category
