EBM-Papst set to recover following revenue decline - EBM-Papst Set for Sales Resurgence
In a strategic move to reposition and foster future growth, EBM-Papst, the fan specialist from Mulfingen, Hohenlohe district, has taken decisive steps. After experiencing a 13.1% revenue decline in the past fiscal year, amounting to approximately 2.1 billion euros, the company has announced the sale of its Industrial Drive Technology (IDT) division to Siemens AG.
The divestiture of the IDT division, which includes intelligent, integrated mechatronic drive systems used in areas like mobile robots and autonomous transport vehicles, is a key part of EBM-Papst’s growth strategy. By selling the division, EBM-Papst is focusing more on its core competencies in fan technology while unlocking new growth potential for the sold division under Siemens.
Siemens has integrated the acquired portfolio into its existing automation solutions, leveraging its global sales network to open new international markets and innovation opportunities. This collaboration is expected to bring enhanced flexibility, productivity, and energy-efficient solutions to smart factories and digital production processes, aligning well with sustainability goals.
CFO Harald Klaiber anticipates growth in the upper single-digit percentage range for the current fiscal year. The company expects some momentum in revenue for the current fiscal year, particularly in the core areas. Klaiber attributes the recent revenue challenges to a long-term strategic realignment.
EBM-Papst's ambition is to nearly double the revenue of its core business to 3.4 billion euros by 2030. To achieve this, the company is phasing out business areas such as automotive technology and household appliances, focusing instead on its core business in air and heating technology.
The CEO of EBM-Papst, Klaus Geißdörfer, announced these growth plans, which involve streamlining the business by divesting the IDT division to Siemens. This strategic move is expected to be a vital step for successful international growth and resilience for EBM-Papst. The company's revenue dip is attributed to this long-term strategic realignment.
The sale of the IDT division to Siemens enables both companies to specialize and expand in their respective fields. EBM-Papst expects this move to stabilize and grow its core fan business while leveraging partnerships to drive overall innovation and market presence.
References: [1] EBM-Papst Press Release, March 2024 [2] Siemens Press Release, July 2025 [3] Industry News, Various Publications, 2024-2025
Community policy could include measures to support the growth of the business sectors affected by the sale, such as providing funding or incentives for vocational training in the manufacturing industry, particularly in the areas of fan technology and automation solutions. The finance department may need to allocate resources for this community policy, ensuring the business remains competitive and financially stable.
The successful growth of EBM-Papst's core business, air and heating technology, could lead to an increased demand for skilled labor in these vocational fields. Vocational training programs could be established or expanded to meet this demand, fostering a steady supply of skilled workers and contributing to the long-term success of both EBM-Papst and the broader business community.
