Profits of Germany’s 100 Largest Corporations Experience a 15% Decline in 2025
Revenue for Volkswagen, BMW, and Mercedes-Benz Declines by 2% Year-Over-Year
The ongoing sluggish growth of the German economy has posed significant challenges for major corporations listed on the German Stock Exchange this year, as reported by the consulting firm Ernst & Young (EY).
According to the report, shared with the German Press Agency (dpa), earnings before interest and taxes (EBIT) for Germany's 100 largest companies, ranked by total revenue, decreased by 15% compared to the previous year, amounting to €102 billion ($120 billion).
In contrast, the revenues of these corporations modestly increased by 0.6%, reaching approximately €1.55 trillion when adjusted for inflation. Profits for nearly half of these enterprises were lower than those reported for the previous year.
Economic Slowdown and Geopolitical Impacts
EY expert Jan Bruhrlecker remarked, "The year 2025 proved to be another challenging period for the German economy."
He further noted that the economy is experiencing a slowdown, exacerbated by geopolitical conflicts and US trade policies that have fostered an environment of investment hesitancy. Additionally, the growing footprint of Chinese companies in the global market has intensified competition and heightened cost pressures.
Challenges for German Industrial Firms
"The year 2025 was particularly arduous for German industrial firms, especially those with a heavy reliance on exports," explained Bruhrlecker.
In light of these conditions, numerous large companies are exhibiting a tendency to curtail hiring, predominantly reducing positions in administrative functions.
Impact of Artificial Intelligence on the Labor Market
"We are also witnessing the ramifications of the increasing adoption of artificial intelligence," the economist added. "The labor market is likely to remain strained, particularly for young professionals."
Sector-Specific Impacts in 2025
The challenges were particularly pronounced within the automotive sector, which is critical to the German economy, where the revenues of Volkswagen, BMW, and Mercedes-Benz experienced a 2% year-on-year decline, totaling approximately €437.2 billion.
Chemical firms were significantly impacted as well, with profits plummeting by 71%, while the IT and healthcare sectors demonstrated relative resilience. Notably, telecom giant Deutsche Telekom emerged as the most profitable enterprise in Germany, with its operating profit increasing by 9% to €19.4 billion in the first nine months of this year.
