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1. Company Snapshot

1.a. Company Description

WashTec AG provides solutions for car wash in Europe, North America, and the Asia Pacific.The company offers various roll-over, self-service, and commercial vehicle wash equipment, as well as associated peripheral devices.It also provides wash tunnel systems; water reclaim systems; equipment maintenance; service projects and upgrades; spare parts; and digital solutions, as well as car wash chemicals under the Auwa brand.


In addition, the company offers car wash management services; and financial services, such as financing and leasing solutions.It serves petroleum companies, convenience stores, individual filling stations, and filling station operator chains; and car wash operators, automobile repair shops, supermarket chains, road freight companies, and public transport operators.WashTec AG was founded in 1885 and is headquartered in Augsburg, Germany.

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1.b. Last Insights on WSU

WashTec AG's recent performance has been positively driven by strong revenue growth and strategic advancements. The company's Q3 2025 earnings call highlighted a 7.2% revenue increase and 17.4% EBIT growth, fueled by efficiency programs and digital innovations. Additionally, a recent analysis suggests the stock may be undervalued, with a fair value estimate of €57.97, implying potential upside. Institutional shareholders' significant ownership and control may also contribute to stability. The company's focus on digital innovations and efficiency programs is likely driving growth.

1.c. Company Highlights

2. WashTec's Strong Q3 Earnings: A Reflection of Operational Excellence

WashTec reported a robust Q3 with revenues reaching EUR 126 million and an EBIT margin of 11.8%. For the nine months, revenues were EUR 358 million, up 7.2% year-on-year, while EBIT grew 17.4% to EUR 32 million. The EBIT margin improved to 9.0%, and earnings per share (EPS) came in at EUR 0.56, beating estimates of EUR 0.54. The company's free cash flow rose by 11.2% to EUR 28 million, demonstrating its ability to generate cash from operations. The strong financial performance was driven by growth across all business lines, with equipment revenue growing 13.7% in Q3, and service revenue increasing by 7.5%.

Publication Date: Nov -30

📋 Highlights
  • Strong Revenue and EBIT Growth: Revenues reached EUR 358 million (+7.2% YoY), with EBIT surging 17.4% to EUR 32 million and EBIT margin improving to 9.0%.
  • Midterm Targets Confirmed: Aims for free cash flow of EUR 40-50 million, 5% average revenue growth, and ROCE over 28% by 2025.
  • Consumables Drive Growth: Consumables revenue grew 11% to EUR 53.7 million, outpacing equipment (+13.7%) and service (+7.5%) in Q3.
  • Regional Disparities: Europe and other regions showed resilience with strong EBIT margin (11.8%), while North America faced headwinds despite equipment sales growth.
  • Strategic Digitalization and Efficiency: Launched SmartCare Connect and digital products, with 13,000 connected units enhancing service efficiency and partnerships like Prag (30 stations digitalized) demonstrating market traction.

Business Line Performance

The company's consumables segment delivered the strongest growth, up 11% to EUR 53.7 million. Geographically, Europe showed resilient growth, driven by higher revenue, better production load, and efficiency programs, while North America faced headwinds. The European margin is strong, and the company is confident in achieving its full-year guidance, with a strong performance expected in Europe and weaker results in North America.

Guidance and Outlook

WashTec confirmed its guidance for 2025, expecting mid-single-digit revenue growth and a disproportionate EBIT increase. The full-year free cash flow is expected to be in the range of EUR 35-45 million. The company is targeting an EBIT ratio of 12-14% in 2027, driven by revenue growth and bottom-line improvements. Analysts estimate next year's revenue growth at 5.2%, indicating a stable outlook for the company.

Valuation and Returns

With a P/E Ratio of 19.38 and an ROE of 40.02%, WashTec's valuation appears reasonable, considering its strong profitability. The company's ROIC is 21.69%, indicating efficient use of capital. The dividend yield is 5.24%, providing a decent return for income investors. The EV/EBITDA ratio is 11.58, suggesting that the company's enterprise value is reasonable relative to its EBITDA.

Operational Highlights

The company has made significant progress in its digitalization efforts, with 13,000 connected units driving efficiency in its service business. A partnership with Prag, owner of over 100 petrol stations, has been successful, demonstrating the acceptance of WashTec's digital initiatives by customers. The company is also focusing on executing efficiency programs, with most benefits expected in 2027.

3. NewsRoom

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Is WashTec AG (ETR:WSU) Trading At A 23% Discount?

Nov -27

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WashTec AG (WBO:WSU) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

Nov -11

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WashTec AG's (ETR:WSU) Stock Is Going Strong: Have Financials A Role To Play?

Oct -06

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WashTec AG (ETR:WSU) is largely controlled by institutional shareholders who own 53% of the company

Sep -22

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Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

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Assessing Acciona (BME:ANA)'s Valuation After Recent Subtle Moves

Sep -09

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Deutsche Bank (XTRA:DBK): Assessing Valuation After a Period of Quiet Share Price Momentum

Sep -09

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Is Vaisala (HLSE:VAIAS) Undervalued? A Fresh Look at Its Current Valuation

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.70%)

6. Segments

Equipment and Service

Expected Growth: 5%

WashTec AG's Equipment and Service segment growth is driven by increasing demand for eco-friendly car wash solutions, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on digitalization and automation of car wash operations, as well as its commitment to providing high-quality services, contribute to its growth.

Chemicals

Expected Growth: 3%

WashTec AG's Chemicals segment growth is driven by increasing demand for eco-friendly car wash solutions, expansion into emerging markets, and strategic partnerships with key industry players. Additionally, the company's focus on R&D has led to the development of innovative and sustainable products, further boosting growth.

Other

Expected Growth: 2%

WashTec AG's 'Other' segment growth is driven by increasing demand for digital services, expansion into new markets, and strategic partnerships. Additionally, investments in innovation and technology have improved operational efficiency, leading to higher margins and profitability.

7. Detailed Products

Car Wash Systems

WashTec AG provides a range of car wash systems, including tunnel washes, gantry washes, and self-serve washes, designed to meet the specific needs of car wash operators.

Bus and Truck Wash Systems

WashTec AG offers specialized wash systems for buses and trucks, designed to handle the unique size and cleaning requirements of these larger vehicles.

Train Wash Systems

WashTec AG provides customized train wash systems, designed to efficiently and effectively clean trains of various sizes and configurations.

Wash Water Treatment Systems

WashTec AG offers advanced wash water treatment systems, designed to recycle and reuse wash water, reducing water consumption and environmental impact.

Chemicals and Detergents

WashTec AG provides a range of high-quality chemicals and detergents, specifically designed for use in car washes, bus and truck washes, and train washes.

Service and Maintenance

WashTec AG offers comprehensive service and maintenance programs, designed to ensure optimal performance and extend the lifespan of wash systems.

8. WashTec AG's Porter Forces

Forces Ranking

Threat Of Substitutes

WashTec AG operates in the car wash industry, where substitutes are limited. However, there is a growing trend towards waterless car washes, which could pose a threat to the company's business.

Bargaining Power Of Customers

WashTec AG's customers are primarily car wash operators, who have limited bargaining power due to the company's strong market position and high-quality products.

Bargaining Power Of Suppliers

WashTec AG relies on a few key suppliers for its equipment and components. While the company has some bargaining power, suppliers also have some leverage due to the specialized nature of the products.

Threat Of New Entrants

The car wash industry has high barriers to entry, including significant capital expenditures and regulatory hurdles. This limits the threat of new entrants to WashTec AG's business.

Intensity Of Rivalry

The car wash industry is highly competitive, with several established players competing for market share. WashTec AG faces intense rivalry from companies such as Kärcher and Istobal.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.39%
Debt Cost 8.33%
Equity Weight 64.61%
Equity Cost 8.33%
WACC 8.33%
Leverage 54.78%

11. Quality Control: WashTec AG passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Jensen-Group

A-Score: 6.1/10

Value: 7.0

Growth: 5.3

Quality: 7.0

Yield: 1.2

Momentum: 9.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Scanfil

A-Score: 6.0/10

Value: 5.4

Growth: 6.8

Quality: 6.7

Yield: 4.4

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
WashTec

A-Score: 5.9/10

Value: 4.1

Growth: 5.0

Quality: 5.7

Yield: 8.1

Momentum: 5.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
JOST Werke

A-Score: 5.6/10

Value: 6.2

Growth: 6.0

Quality: 3.2

Yield: 5.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Bodycote

A-Score: 4.8/10

Value: 4.6

Growth: 2.8

Quality: 4.3

Yield: 5.6

Momentum: 6.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Gévelot

A-Score: 4.6/10

Value: 7.2

Growth: 2.7

Quality: 4.6

Yield: 3.8

Momentum: 1.5

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

46.1$

Current Price

46.1$

Potential

-0.00%

Expected Cash-Flows