Report of the Executive Board

This report marks the start of a new chapter: For the first time we are publishing an Integrated Corporate Report, combining the Annual and Sustainability Reports that we have previously published. Our goal, however, remains unchanged. We will continue to inform you transparently about the business performance and economic situation of the family-owned STIHL Group and provide insights into our sustainability activities.

The 2025 fiscal year challenged us and once again demonstrated how demanding our environment is. After a promising upswing in the first half of the year, we faced strong headwinds in the second half – primarily due to import tariffs in the USA and the weak US dollar. Nevertheless, we have remained on a growth course: With total revenue of approximately 5.5 billion euros, 2.8 percent above the previous year, we were able to record positive overall business development. Adjusted for exchange rates, the increase in revenue is almost 6 percent. The main driver of this was the strong gasoline-powered product business.

At the same time, we have set an important direction for the future. With the commissioning of our first battery plant in Oradea, Romania, we have reached a milestone in the Group’s transformation toward battery technology. This eighth plant within our international manufacturing network strengthens our position in the battery segment, meets the growing demand in the European market, and reinforces our ambition to achieve dual technology leadership.

In the new fiscal year, we will continue to pursue our key strategic goals with determination: We will ensure our organization remains consistently aligned with market and customer needs, strengthen our financial independence, and ensure sustainable growth as well as long-term competitiveness. Moreover, we are further advancing our sustainability efforts across all three dimensions – ecology, economy, and social issues.

In 2026, it´s all about our anniversary: STIHL is looking back on 100 years of history. What began in 1926 as a one-man operation founded by Andreas Stihl has evolved into a global organization with more than 20,000 employees Group-wide. Courage and a willingness to embrace change have always been the foundation for our success – and will continue to be so in the future. We want to shape this transformation with foresight, without forgetting our roots. This requires employees who focus on our strategic goals with passion, courage, and innovative strength; people who work together across divisions and across the globe to achieve great things together.

I would like to thank all of you. With your dedication, we have been able to turn a challenging 2025 into a successful one. I would also like to thank the Stihl family for their trust in the management and their support for our strategies and measures. And thank you to the entire Executive Board and employee representatives for their good and constructive cooperation. I look forward to continuing this journey together.