Markets

Global markets continue to be under tension due to geopolitical turbulence, economic uncertainty, and changing regulatory demands. For the STIHL Group that means flexibility, innovation, and strategic vision are more crucial than ever. Despite these challenging conditions, the Group has been able to maintain its market position and seize new opportunities in the year under review.

As in previous years, the market environment in 2025 was also characterized by numerous global challenges. Alongside geopolitical tensions and political uncertainties, the family-owned STIHL business was also put to the test by inflation rates, the climate crisis, and complex supply chains and trade conflicts. Furthermore, changes in tariffs, export licenses, and sustainability requirements made international business more difficult.

Nevertheless, the STIHL Group recorded overall positive business development in the year under review. There was an encouraging development of unit sales and revenue, and we were able to strengthen our market position in several regions. Further details can be found in the Report of the Executive Board.

Pressures increased further in the second half of the year, with rising costs due to trade barriers, volatile currencies, and tighter export controls posing additional challenges. These developments emphasize the importance of proactive risk management. We responded with measures to strengthen supply chains, tap into new growth regions, and stabilize particularly affected markets.

More resilient supply chains with AI

The STIHL Group is increasingly making use of proactive, data-driven risk management and artificial intelligence (AI) to make supply chains even more resilient. The aim is to identify potential risks early – by analyzing large amounts of data from diverse sources such as news feeds, trade data, business information services, regulations, tariff rates, and manufacturing locations.

In the future, it will be easier to automatically identify patterns and potential for change. This means that findings that are still largely processed manually today will be handled in a more data-driven and automated manner, enabling efficient and well-evidenced situation assessments and improving the design and management of supply chains.

We aim to use AI to support targeted human decision-making so that our employees’ daily work is more efficient and therefore more economical.

Africa campaign and Adria expansion

Africa is a key part of STIHL’s long-term strategy. To further leverage the growth potential within the continent, two marketing companies were established at the end of 2023, in Morocco (Casablanca) and Cameroon (Douala); these were officially opened at the beginning of the reporting year. Their presence will contribute to better utilization of the promising markets in North and Central Africa and support the Group to optimally serve their different needs. The two new companies mean that the STIHL Group now serves all five African regions.

STIHL Adria is also pursuing a clear expansion strategy. As well as existing activities in Serbia, Montenegro, and North Macedonia, it is focusing on entering additional markets such as Albania. There are plans to build up local sales and service networks and strengthen the brand presence. Personnel capacities will also be expanded, and internal processes in areas such as HR, marketing, and logistics will be optimized. The aim is to ensure sustainable growth and consistent standards.