Market environment and business development
The reorganization of Automotive Components largely shaped the development of the Metal Forming Division in the 2025/26 business year. The market for Tubes & Sections lost momentum over the course of the reporting period, whereas Precision Strip recorded a recovery, and the growth trajectory at Warehouse and Rack Solutions was also successfully maintained.
The Automotive Components business unit was characterized by a persistently challenging market environment in the 2025/26 business year. Automotive production in Europe remained below expectations throughout the reporting period and was further burdened by extended production shutdowns at OEMs during the summer months and the holiday season. In North America, the tariffs that were implemented led to noticeable uncertainty in the market. In China, competitive pressure among automakers increased significantly. Against this challenging backdrop, the reorganization project launched in the previous year was consistently implemented as planned, which contributed significantly to stabilizing earnings. As one of many measures, production at the Birkenfeld site was discontinued at the end of the third quarter of 2025/26, and further synergy potential was realized across the operating units.
Tubes & Sections performed well at the start of the 2025/26 business year, although demand weakened continuously beginning in the summer. In the UK, the downward trend in the construction industry continued, and economic confidence in continental Europe also declined noticeably at the start of the reporting period. Consequently, some customer investment projects were postponed. Unaffected by this, demand for specialty profiles for commercial vehicles and buses remained largely satisfactory. In North America, U.S. tariff policies led to significant caution on the part of customers during the 2025/26 business year. Brazil and China also recorded a decline in market activity during the reporting period.
Despite ongoing market uncertainty, the Precision Strip business unit performed well in the 2025/26 business year. Successful product innovations, active development of new markets, and the implementation of measures to enhance the competitiveness and resilience of the business model were the key drivers of this positive performance. On the market side as well, following a prolonged period of challenging conditions in Europe, demand picked up during the business year. The Chinese market continued its robust momentum, although competitive pressure increased in the second half of the 2025/26 business year. In North America, the tariffs that were implemented led to higher product prices and, consequently, to a volatile market environment with short-term ordering behavior on the part of customers.
The Warehouse & Rack Solutions business unit continued its positive trend throughout the 2025/26 business year and remained one of the division’s key growth drivers. Demand for automated warehouse systems was high in both Europe and North America, reflecting the growing importance of modern logistics and automation concepts.