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DAX Companies Report 8.1% Profit Decline and 32,000 Job Cuts in Q1 2025

Germany's largest firms face profit slumps, with automakers hit hardest, while defense sector thrives and full tariff impacts loom.

Overview

  • Operating profits for DAX-listed companies fell by 8.1% to €44.8 billion in Q1 2025, despite a 3.3% rise in overall revenue.
  • Approximately 32,000 jobs were cut across 27 DAX companies, marking a 1% reduction in their workforce over the past year.
  • Automakers experienced a 42% profit collapse and a 2.5% revenue drop, while defense firms Rheinmetall and MTU Aero Engines saw revenue surges of 46% and 28%, respectively.
  • Insurance giants Munich Re and Hannover Rück faced significant losses due to wildfire claims from Los Angeles earlier this year.
  • The full impact of newly imposed U.S. tariffs is not yet reflected in financial results but is expected to become evident in the second half of 2025.