Overview
- An EY review shows EBIT at the 100 largest German companies fell 15% to about €102 billion in January–September, with revenue up just 0.6% to €1.55 trillion, below inflation.
- Automakers and chemicals suffered the steepest declines, with operating profits down roughly 46% and 71% respectively, while IT profits nearly doubled and health care rose about 40%.
- Employment at the top firms dropped by around 17,500 in the first nine months, bringing cumulative losses since 2023 to roughly 100,000 jobs.
- An IW survey of 46 associations reports 22 expect workforce reductions in 2026, only nine foresee hiring, and investment plans remain subdued.
- Outlook bright spots include sectors tied to defense spending such as aerospace and shipbuilding and parts of services, though competitiveness pressures persist.