As a global technology leader, ebm‑papst continues to navigate economic and geopolitical challenges with a focused strategy of renewal, setting new standards for the future of fans and motors. “For the past three years, we have been driving this realignment with full force, because we see opportunities in the markets of tomorrow and are determined to seize them,” explained CEO Dr. Klaus Geißdörfer at the annual press conference in Mulfingen.

According to Dr. Geißdörfer, ebm‑papst has moved beyond the downturn and has been recording stable global order intake since April. Demand has risen sharply in the industrial air technology sector, particularly for cooling systems used in data centers. The Hohenlohe-based company is now expecting growth this year, especially in its core segments of air and heating technology.

“Sales for the 2024/25 fiscal year (April 1 to March 31) totaled 2.098 billion euros, representing a 13.1 percent decrease compared to the previous year,” explained CFO Harald Klaiber at the annual press conference. He noted that a clear focus on the core business is reflected in the development across business areas. “Industrial air technology, the segment that made ebm‑papst great, now accounts for more than 75 percent of total sales once again,” Klaiber emphasized. Sales in this segment declined by 8.2 percent due to economic factors. The heating technology segment was more severely impacted, experiencing a 27 percent decline due to market uncertainty caused by the German Building Energy Act.

Ambitious Growth Targets

With its consistent focus on intelligent and sustainable air technology solutions, a strong global presence in key markets, and a simultaneous strategic exit from the automotive, household appliances, and industrial drive technology sectors, ebm‑papst is pursuing ambitious growth plans. “By 2030, we aim to nearly double the sales of our core business to 3.4 billion euros,” announced Dr. Geißdörfer.

The strategic phase-out of the automotive technology (passenger cars) and household appliances (commoditized product area) segments, including the deliberate decision to stop generating new business in these areas, significantly impacted overall sales. Combined with the industrial drive technology segment, which has since been transferred to Siemens, revenue in these areas declined by nearly 19 percent to around 275 million euros.

From a regional perspective, the German market was especially affected by the discontinuation of these business areas, with revenue falling 24 percent to 376.4 million euros. Outside of Germany, revenue declined by 10.3 percent compared to the previous year, totaling 1,721.2 million euros.

Financial Solidity as the Basis for Transformation

This transformation is also reflected in personnel development. Following a period of continuous growth, ebm‑papst has adjusted its workforce structure in response to changing market conditions and strategic realignment. “In challenging times, we are deliberately focusing on our core workforce,” emphasized CFO Harald Klaiber. While the number of temporary workers has been reduced, the company is simultaneously investing in upskilling its core employees, particularly in forward-looking areas such as artificial intelligence and digitalization.

Despite the decline in sales during the 2024/25 fiscal year, ebm‑papst views its financial position as solid. The current figures reflect the realities of the challenging market environment, Klaiber explained.

On Track with ESG Expansion

In line with the technological transformation, ebm‑papst is also continuing to drive forward its ESG goals. “Sustainability is not just a buzzword at ebm‑papst; it is firmly rooted in our corporate culture. It is important to us to take a holistic view of sustainability,” emphasized Harald Klaiber, who is also responsible for ESG.

Countercyclical Investments in Global Presence

Despite the economic challenges, particularly over the past fiscal year, ebm‑papst remains focused on forward-looking investments in international expansion and technological innovation. Following an exceptionally high investment volume of around 190 million euros in fiscal year 2023/24, the company has returned to a sustainable level of 120.8 million euros and plans to increase total investments this year to 140 million euros.

“Around 100 million euros is being invested specifically to expand our global presence,” explained CEO Dr. Klaus Geißdörfer. The family-owned company is allocating 36 million euros for a new plant in India, 30 million euros to expand production in China, and another 30 million euros to its site in Romania. Geopolitical tensions, especially recent economic policy changes in the U.S., reinforce the importance of the “local-for-local” strategy the company adopted in 2017.

In Mulfingen, 30 million euros have also been invested in the new E-Drive Solution Labs, demonstrating a clear commitment to the company’s home base and marking another important step in the development of intelligent technology solutions. Geißdörfer also noted that ebm‑papst invested a record 140 million euros in research and development last year, with an R&D ratio significantly exceeding 5 percent. “This clearly shows that we do not face adverse conditions passively, but instead work with determination to future-proof our company and, in doing so, contribute to Germany’s economic strength,” he said.

AI Revolution Drives Demand for Efficient Cooling

One of ebm‑papst’s key growth markets is data center cooling. “The rapid advancement of artificial intelligence is driving a significant increase in energy demand. Data centers already consume around two percent of global electricity production, and that number is rising,” explained CTO Prof. Dr.-Ing. Tomas Smetana. If, as projected by the International Energy Agency (IEA), electricity consumption doubles by 2030, the potential for energy savings becomes substantial. “Up to 30 percent of a data center’s energy is used for cooling, and we can reduce that by up to 50 percent,” said Smetana. “Without efficient cooling, the development of AI will come to a halt.”

Digital Ecosystem NEXAIRA Revolutionizes Air Technology

With the introduction of the NEXAIRA digital ecosystem—unveiled at ISH 2025, the leading international trade fair for sanitation, heating, air conditioning, and intelligent living—ebm‑papst is taking a major step forward. The company’s fans already capture operating data in real time and adjust performance accordingly. The NEXAIRA system builds on this by enabling features like filter contamination detection without additional sensors and automatic vibration monitoring, enhancing operational reliability. It also enables demand-based operation, delivering double-digit percentage energy savings. “This fundamentally changes how we plan and think about ventilation systems,” said Prof. Dr. Smetana. “It helps us save up to 50 percent on energy even in existing systems. Our physical product solutions, combined with the NEXAIRA ecosystem, create a true symbiosis for energy efficiency.”

Future: High-speed Compressors

To support these growth targets, ebm‑papst is also developing high-speed turbo compressors, currently in the sampling and testing phase. These innovations are expected to be deployed globally in various refrigeration circuits, including air conditioning systems and heat pumps, within a few years. The compressors are extremely quiet, weigh just one-fifth of conventional models, are oil-free, and require significantly less space and coolant.

Innovation Park Artificial Intelligence (IPAI) in Heilbronn

In Heilbronn, ebm‑papst is among the first active partners at the Innovation Park Artificial Intelligence (IPAI). “Our AI specialists have found an ideal environment at the IPAI to collaborate with other companies and research institutions on future-focused solutions,” said CEO Dr. Klaus Geißdörfer. By the end of 2024, the company had already trained more than 1,200 employees in AI skills, well ahead of the requirements set by the European AI Act. Thanks to this early investment, ebm‑papst has already streamlined many processes. Dr. Geißdörfer anticipates that AI could boost productivity in certain areas by up to 40 percent.

ebm‑papst Has the Power to Transform

With the same perseverance that led to the success of EC technology, Dr. Geißdörfer and his team—together with support from the company’s three shareholder families—are now leading the transformation of the ebm‑papst Group. “We take a long-term view and implement changes that deliver sustainable impact. As a family-owned company, we have the strength to make this transformation a reality,” Dr. Geißdörfer said.