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  • Dietmar Heinrich and Dr. Jochen Weyrauch

Business model / Strategy

The Dürr Group is one of the world’s leading mechanical and plant engineering firms. We combine economic efficiency and environmental sustainability in industry and craftsmanship. Our solutions enable the safe and resource-efficient production of goods that billions of people use every day.

Business Model

Our core competence is the engineering of efficient production technology with a high degree of automation. We offer our customers a full range of options from individual machines to turnkey manufacturing systems. In this context, our offering in digital networking and control of production systems is becoming increasingly important.

Our technologies and services help our customers achieve efficient and sustainable production by focusing on the following primary factors:

  • Digitalization, automation and technological innovation
  • development of material-efficient, energy-saving, and low-emission products
  • planning, engineering, and order processing know-how
  • a comprehensive range of services for the entire life cycle of our products
  • global presence, proximity to customers in all market regions

We operate in niche markets, in each of which we are among the largest suppliers or the market leader. In 2024, 68% of sales from continued operations came from mechanical engineering and 32% from plant engineering. In mechanical engineering, we aim for EBIT margins of 10% or more; in plant engineering, the target margin is over at least 6%. In terms of return on capital employed (ROCE), the mid-cycle target is 25% or more. In principle, our business model allows us to achieve high operating and free cash flows. Our mid-cycle target is for free cash flow to amount to at least 80% of earnings after taxes.

Strategy

Our corporate strategy is oriented to both profitability and growth. It aims to act on opportunities in established core business as well as in new or high-growth business areas. In established business, the focus is on expanding market leadership and profitability. We call the new business areas “growth business”. They are characterized by high growth potential and access to new markets and customers.

  • Established Business
    Established business entails painting and final assembly technology for the automotive industry, balancing and tooling technology, as well as furniture production technology. We hold leading global market positions in these areas and expect them to generate moderate to medium sales growth between now and 2030. The main priority in established business is to secure profitability at the mid-cycle target level or – in the case of the woodworking and tooling business – to return to the mid-cycle target level. This will be achieved by targeted division-specific and Group-wide initiatives to strengthen earnings resilience, for example, through the margin-oriented value-before-volume strategy in automotive business, the expansion of service business, efficiency programs and increased localization in best-cost countries.
  • Growth Business
    Growth business consists of three business areas (Construction Elements Solutions, Production Automation Systems, Battery Production) with potential for strong, above-average sales growth. Aggregated sales from growth business reached roughly €710 million in 2024. By expanding our activities, we are aiming to increase this to a total of €1.6 to €1.8 billion by 2030. In this way, the three growth business areas are to make the greatest contribution to the growth in Group sales to more than €6 billion.

Target Key Figures

Our strategy includes several KPI targets that extend until 2030:

  • 5 to 6% sales growth: Sales are to grow by an average of 5% to 6% per year between 2023 and 2030, reaching more than €6 billion in 2030.
     
  • High profitability: The EBIT margin before extraordinary effects is to widen to at least 8%. This is a mid-cycle target, achievement of which is predicated on normal market conditions free of any major dislocations.
     
  • Attractive return on capital: We are aiming for an ROCE of at least 25%. This is also a mid-cycle target.
     
  • Good cashflows: We are aiming for a cash conversion rate of at least 80% (free cash flow is at least 80% of earnings after tax).
     
  • Solid balance sheet: The ratio of net financial liabilities to EBITDA should not exceed 2.0.
     
  • Increased share of service business: With its higher margins, service business is to consistently contribute at least 30% to Group sales.

Strategic portfolio management

We engage in portfolio management based on the guiding principle of “Sustainable Automation”. In this way, we are strengthening our strategic focus on sustainability and automation as growth drivers and structuring the Group in such a way that we can permanently achieve our margin target of at least 8%.

Our portfolio management features two dimensions: On the one hand, we are optimizing our core business (Automotive and Woodworking divisions) so that they can achieve their respective margin targets in the best possible way. On the other hand, we are engaging in acquisitions and disposals to build up new business areas within our strategic focus and to sell businesses that are outside our focus.

Synergies and skills

The three divisions Automotive, Industrial Automation, and Woodworking are active in largely different markets but share key skills. In addition, they are exploiting synergistic potential under the umbrella of the Dürr Group.

As a mechanical and plant engineering company, we offer our customers end-to-end technological solutions. We serve our customers on a long-term basis and in partnership projects. This calls for overarching core competences, strengths, and prerequisites that we develop as part of the strategy and that all divisions share:

  • Innovation and engineering expertise for the development of leading-edge technological products (mechanics, electrical, software/AI)
  • Project management expertise for the reliable management of large, often multi-year contracts
  • Service expertise to provide optimum support, to modernize our installed base, and to generate above-average contributions to earnings
  • Localization: Efficient locations in all major markets, partly local product development
  • Customer expertise: Detailed knowledge of our customers’ production processes
  • Teams and corporate culture: Highly qualified employees, encouragement of self-initiative, entrepreneurial approach, and commitment.
Dr. Jochen Weyrauch (CEO of Dürr AG)
Dr. Jochen Weyrauch
CEO of Dürr AG

We are committed to sustainable and highly automated production processes. In this way, we support the users of our technologies in tackling two of the most important challenges of our time. Firstly, our customers need to decarbonize their factories to reduce their ecological footprint and meet ambitious emission targets. Secondly, an increasing number of products can only be manufactured using fully automated processes – to comply with top quality standards, achieve high production volumes, reduce costs, and counteract labor shortages. Both sustainability and automation in production are at the core of our strategic focus. We support this with targeted investments, innovative strength, first-class project execution, and 20,000 employees who know their fields of business better than anyone else. This is how we create value – for our customers, shareholders, employees, and society.