Profits of Germany's Top 100 Companies Plunge by 15% Amid Sector Struggles in 2025

Germany's top 100 companies have experienced a significant profit decline in 2025, marking the third consecutive year of reduced earnings. According to an EY study cited by both n-tv and Tagesschau, the earnings before interest and taxes (EBIT) of these companies dropped by 15% to €102 billion in the first nine months of the year. While total revenue slightly increased by 0.6% to approximately €1.55 trillion, this growth failed to keep pace with inflation, signaling minimal real economic gains.

The automotive sector was particularly hard hit, suffering a 46% drop in operational profits. Leading companies such as Volkswagen, BMW, and Mercedes-Benz faced acute challenges, although Volkswagen remains Germany's largest employer with roughly 633,000 employees. The chemical industry also experienced a severe downturn, with profits plummeting by 71%. Conversely, the technology sector thrived, nearly doubling its profits, and healthcare companies reported a 40% increase.

Employment also reflected the economic downturn, with about 17,500 jobs lost in 2025 alone, adding to an estimated 100,000 job reductions since 2023. 39 companies reported declines in their workforce, bringing total employment down by 0.4% to around 4.24 million. Many firms are limiting hiring, especially for administrative roles, often leveraging artificial intelligence to streamline operations.

EY expert Jan Brorhilker attributed the profit declines to weak economic conditions, ongoing geopolitical tensions, and heightened competition from China impacting Germany's export-driven industries. Despite the difficult environment, Brorhilker conveyed cautious optimism about potential recovery avenues. He noted that strategic shifts, particularly in the automotive industry with new electric vehicle models, and government investment initiatives could foster future growth. The technology and healthcare sectors are expected to remain growth drivers moving forward.

In summary, Germany's leading companies face a challenging economic landscape in 2025, marked by significant profit contractions and employment reductions across traditional industries. However, emerging sectors and strategic adjustments offer hope for stabilization and growth in the near future.