Ziehl-Abegg reports revenue decline in 2024, anticipates growth in 2025

KUNZELSAU, Germany, 28 March 2025: The year 2024 for German manufacturer, Ziehl-Abegg posed major challenges, but the company said the outlook is bright. By the end of the year, the company said, it recorded a noticeable uptick in incoming orders.

Making the announcement through a Press Release, the company said a key driver behind the momentum is the construction of new data centres – most notably in the United States but also in Asia. The positive development is also reflected in staffing: Since the start of the year, more than 200 temporary workers have been added in Germany alone, the company said.

Ziehl-Abegg reported revenues of EUR 893 million (USD 965 million) for 2024, a drop of roughly seven per cent compared to the previous year, EUR 955 million in 2023 (USD 1 billion). Ziehl-Abegg said the downturn was particularly pronounced in Germany, where revenues declined by over 20%. Other European markets also fell short of expectations, the company said. In contrast, business in the Americas (North and South America) saw strong growth, and Asia posted a modest increase, the company added.

Joachim Ley, CEO, Ziehl-Abegg, said, “Growth in the Americas and Asia, unfortunately, wasn’t enough to offset the downturn in Europe.”

Ziehl-Abegg said the air technology division once again generated the lion’s share of revenue (90%), while drive technology contributed 10%. Despite market headwinds, there were no layoffs; reduced capacity was managed through temporary staffing and short-time work, the company said. In total, the company’s headcount increased from 5,000 to 5,300 employees, Ziehl-Abegg said. This growth occurred outside Germany, while staffing levels at the company’s three German locations remained steady at 2,800, the company added.

In addition to shifting market dynamics, Ziehl-Abegg said, 2024 was also marked by major investments. In August, Ziehl-Abegg said, it opened a new plant in the United States – the largest single investment in company history at EUR 100 million. Earlier in the year, a new production facility began operations in Vietnam, Ziehl-Abegg said.

And in late 2023, the company said, it completed another plant in Poland, initially intended to meet growing demand for heat pump fans – a boom that has yet to materialise. Ley said, “Long transport routes drive up costs and make little sense ecologically.” These investments underscore Ziehl-Abegg’s long-term growth strategy, but they also call for strict cost discipline – despite strong order books, the company said.

Ziehl-Abegg said the demand for energy-efficient solutions in data centres is booming and that operators in the United States and Asia are increasingly turning to Ziehl-Abegg’s high-performance fans to boost energy efficiency in their facilities. Ziehl-Abegg said this trend is fuelling optimism for 2025.

As is tradition, Ziehl-Abegg said, it does not publish profit figures – but one thing is clear: 2024 was economically unsatisfactory. That makes the strong start to 2025 all the more important. Ley said, “The company is globally positioned for growth – we’ve done our homework.”

[Editor’s Note: Currency conversions in the article are as per March 28 2025]