The Bosch Group posted solid results for the first half of 2026, amidst a business environment that remains challenging. The technology and services supplier increased its sales by 3.6 percent to 46.4 billion euros (H1 2025: 44.8 billion euros). The HVAC business recently acquired from Johnson Controls and Hitachi contributed approximately 2 billion euros to sales growth. Operating EBIT (earnings before interest and taxes) stood at 2.2 billion euros (H1 2025: 2.3 billion euros). The operating EBIT margin was 4.6 percent of sales, compared to 5.1 percent in the previous year. The result was primarily impacted by one-off factors in the Mobility business sector. Despite numerous economic and geopolitical uncertainties, Bosch reaffirms its sales and earnings forecast for the full year.
“With solid sales growth in the first half of the year, we are on the home stretch toward achieving our 2026 targets, but we still need a strong finish,” said Markus Forschner, CFO and Deputy Chairman of the Board of Management of Robert Bosch GmbH, during the presentation of the half-year results. Forschner added that “this is precisely why the company is firmly continuing with the structural adjustments and cost-cutting measures already initiated, in order to maintain significant upfront investments in emerging technologies and capitalize on growth opportunities.”
Outlook for the second half of 2026: competitiveness and a strengthened presence
The global economy is demonstrating remarkable overall resilience in 2026. At the same time, Bosch anticipates that the economic outlook will remain characterized by uncertainty, which will continue to delay investment decisions in many markets and lead to intense competitive pressure. In the key automotive sector, Bosch forecasts a further decline in global production of passenger cars and light commercial vehicles in 2026, while heavy commercial vehicle production is expected to see slight growth. “Bosch is rigorously pursuing its growth strategy despite global uncertainties and is capitalizing on opportunities offered by new technologies, business areas, and emerging markets,” explained Forschner. “For this reason, the focus for the second half of the year will remain on increasing competitiveness and ensuring the company maintains a strong presence. The primary objective remains the further reduction of costs and complexity.” Despite the challenging environment, the company reaffirms its forecasts: for the 2026 fiscal year, Bosch continues to project sales growth in the range of 2 to 5 percent, with an expected operational EBIT margin of 4 to 6 percent.
Analysis of the first half of 2026: performance by business sector
Sales performance across business sectors presents a mixed picture, although all sectors contributed positively to the results. The Mobility business sector generated sales of €27.8 billion, down 0.5 percent year-on-year. Adjusted for exchange rate effects, this represents a 2.3 percent increase. Stagnating automotive production impacted the profit margin, as did exceptional special effects. The latter were primarily driven by asset impairment charges in production units, totaling 270 million euros, as the global expansion of electromobility lags behind earlier expectations. The operating EBIT margin stood at 4.7 percent (H1 2025: 5.8 percent). Sales in the Industrial Technology business sector rose by 6.8 percent (9.2 percent adjusted for exchange rate effects) to 3.4 billion euros, reflecting a recovery in orders. The EBIT margin was 2.5 percent (H1 2025: 4.5 percent). Intensifying competition from Chinese suppliers was felt in the Consumer Goods business sector, where sales fell by 2.9 percent year-on-year to 9.6 billion euros. Adjusted for exchange rate effects, sales remained unchanged. The operating EBIT margin was 4.4 percent (H1 2025: 5.1 percent). The Building Technology and Energy business sector recorded significant sales growth of 45.9 percent, reaching 5.4 billion euros, driven by an acquisition within the Home Comfort division. Approximately 2 billion euros of this figure is attributable to the acquisition. The sale of significant parts of the Building Technologies product business resulted in a revenue decline of approximately 450 million euros. Adjusted for exchange rate effects, sales growth was 52.0 percent. The operating EBIT margin was 7.3 percent (H1 2025: 0.8 percent).
Regional performance
Global economic growth slowed in the first half of 2026 amidst considerable geopolitical tensions. The conflicts in the Middle East and Ukraine, in particular, impacted the global market environment. Exchange rate effects dampened sales performance across all regions. In Europe, sales rose by 1.4 percent to 22.4 billion euros; adjusted for exchange rate effects, they recorded a 2.2 percent increase. In the Americas, sales reached 9.4 billion euros—an increase of 5.7 percent, or 12.2 percent after adjusting for exchange rates. In Asia-Pacific, revenue grew by 5.9 percent to 14.6 billion euros; adjusted for exchange rate effects, growth stood at 10.4 percent. The acquisition within the Bosch Home Comfort division was a key factor in the positive performance in the Americas and Asia-Pacific.
Headcount development
At the end of the first half of 2026, the Bosch Group employed 406,225 people, 6,549 fewer than on December 31, 2025 (412,774). The reduction in headcount affected all business sectors but had a disproportionately large impact on the Mobility sector. From a regional perspective, the sharpest decline in employee numbers was recorded in Europe. In Germany, Bosch employed 118,932 people at the mid-year point (December 31, 2025: 122,968), representing a decrease of 4,036 employees.
Strong financial position, liquidity, and substantial R&D spending
The Bosch Group maintains a solid financial position, although liquidity—based on the consolidated statement of cash flows—was lower year-on-year, standing at €9.0 billion (H1 2025: €11.2 billion). The equity ratio remained high at 41.3 percent (December 31, 2025: 41.5 percent; the prior-year figure was adjusted following the final consolidation of the Home Comfort division acquisition). Reflecting improved capital efficiency, the investment ratio stood at 2.5 percent (H1 2025: 3.8 percent), while capital expenditure totaled €1.2 billion (H1 2025: €1.7 billion). The research and development spending ratio was 8.0 percent (H1 2025: 8.7 percent). As of June 30, 2026, free cash flow (FCF) stood at -€969 million, an improvement compared to the same period last year (-€2.7 billion); this interim free cash flow trend is typical for many companies. The main drivers were the seasonality of capital expenditure on property, plant, and equipment and the resulting increase in year-end liabilities, which led to disproportionately high payments in the first quarter. By the end of the year, Bosch expects positive free cash flow of at least 1 percent of sales.
