For decades, we have been developing and manufacturing electromagnetic drive components, sensors, solenoid valves, electric motors, and electronic modules for customers in the mobility and industrial sectors. We are currently realigning our business through a consistent local-for-local strategy, standardized development platforms, and a group-wide common-parts strategy. This transformation is delivering positive results. At midyear 2026, both revenue and earnings were slightly above plan.
Picture: CFO Hubertus Stroetmann, CEO Volker Gross und COO Patrick Boos (v.l.n.r.)
or decades, the ETO GRUPPE has been one of those specialized suppliers whose products usually operate behind the scenes. Electromagnets and actuators perform switching, positioning, and locking functions; solenoid valves control the flow of fluids and gases; sensors detect conditions and movements; and electric motors ensure precise motion, for example in cooling circuits. The company develops and manufactures these components and subsystems for applications in the automotive industry as well as numerous other industrial sectors.
A key element of our realignment is our local-for-local strategy. Development and production are being aligned more closely with the respective sales markets and customers. In doing so, the ETO GRUPPE aims to shorten transportation routes and supply chains, respond more quickly to regional requirements, and strengthen its production structures further, particularly in the United States and China.
At the same time, we are increasingly relying on modular development platforms and a common-parts strategy. Wherever possible, new customer-specific solutions are developed using standardized technologies, components, and platforms. This shortens development times, reduces the number of variants and overall complexity, and creates economies of scale in purchasing and production. In this way, customized solutions and standardization are combined.
The ETO GRUPPE demonstrates how a medium-sized automotive supplier can adapt to changing markets: not by withdrawing from the automotive business, but through a stronger technological focus, greater standardization, and an international production structure that is closely aligned with local markets. At the same time, we are continuing to expand our business in applications beyond the traditional automotive market.
Stabilization Is Also Reflected in the Figures
The positive development is also evident in the company’s financial performance. According to CEO Volker Gross, revenue and earnings were above plan at midyear 2026. The company expects this trend to continue throughout the full year. “However, further development remains subject to uncertainty. In particular, geopolitical developments, trade conflicts, and the difficult-to-predict performance of key sales markets may affect our results,” said Volker Gross. For the first half of 2027, Volker Gross expects further improvements in terms of revenue, earnings, cash flow, and equity. By then, the company also expects the realignment phase to be largely completed.
Clear Focus on Mobility and Industry
The current transformation follows two economically challenging years. In 2025, the ETO GRUPPE recorded a net loss in the mid-double-digit million-euro range. In addition to weak conditions in automotive markets, one-off effects related to the realignment also impacted results. Since then, the ETO GRUPPE has streamlined its portfolio and realigned its organizational structures.
Today, the focus is on the company’s core technological competencies in mobility and industry and on their systematic further development. With this clear strategic direction and its international footprint, the ETO GRUPPE believes it is well positioned to develop new applications and enter new markets.