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The Zeppelin Group successfully concludes the fiscal year 2023 despite geopolitical and economic challenges


Friedrichshafen / Garching near Munich, March 28, 2024. The Zeppelin Group successfully closed the 2023 fiscal year with a revenue of 3.9 billion euros (2022: 3.8 billion euros), an EBITDA of 482 million euros (previous year: 437 million euros), and earnings before taxes of 154 million euros (previous year: 135 million euros). The Zeppelin Group anticipates a growing investment restraint in 2024 but sees opportunities in energy transition, rental services, and sustainable drive systems.

·    Group sales: 3.9 billion euros (+3%)

·    EBITDA: 482 million euros (+10%)

·    Group earnings before taxes on income and earnings 153.8 million euros (+14%)

·    Number of employees: 10,361 (-1.9%) (average number of employees over the year, including apprentices)

"Despite global, geopolitical and economic uncertainties, which led to a reluctance to invest and purchase across almost all of our business segments, Zeppelin was able to increase its revenue compared to the previous year. In addition to the improved delivery capability of our manufacturer partner Caterpillar and the high order backlog to be processed, the great commitment and impressive loyalty of our employees were decisive for this good result," says Peter Gerstmann, Chairman of the Management Board of the Zeppelin Group.

Christian Dummler, Managing Director and CFO of the Zeppelin Group, emphasizes: "In 2023, we once again demonstrated our high level of resilience through the strategic orientation of the company. Even under increasingly challenging conditions, we were able to develop Zeppelin positively and successfully. The reaffirmed "A-" rating with a "stable outlook" from Creditreform Rating AG confirms the high creditworthiness and very low default risk. Special recognition was given to the fact that the Zeppelin Group was able to increase its sales and keep its operating result stable, although the effects of Russia's war against Ukraine had a noticeable negative impact on sales and earnings in 2022."

"The Zeppelin Group can look back on a very successful fiscal year. This success is based on the constructive, responsible, and trustworthy cooperation between the management board, 

supervisory board, and employees. Investments in infrastructure, technology, and inorganic growth at a consistently high level secure the future viability of Zeppelin," says Andreas Brand, Chairman of the Supervisory Board of the Zeppelin Group.

Development of Strategic Business Units

Despite decreasing order intakes over the course of the year, the business unit Construction Equipment Central Europe can look back on a year with high revenue growth due to the high order backlog. Due to political uncertainty and persistently high interest rates, as well as high price dynamics in construction, the demand for new construction machinery has decreased despite the necessary investments in infrastructure for energy, digitalization, maintenance, and transportation routes. The companies in the Scandinavian areas were also able to slightly increase their revenue performance, but they were not unaffected by the flattening construction economy.

Following the complete withdrawal from the construction and mining business in Russia, the Strategic Business Unit Construction Equipment Eurasia continues to fulfill existing obligations towards non-sanctioned customers in the agricultural sector. In Ukraine, Zeppelin continued its business activities despite adverse circumstances. In Uzbekistan and Armenia, the market for construction and mining machinery continued to develop positively.

In 2023, Zeppelin also grew inorganically. With the acquisition of the rental organization CP ApS in Denmark, Zeppelin further expanded its commitment to temporary rental solutions in Scandinavia and was able to significantly strengthen its market position in Denmark.

With a consistently high order intake for engine overhauls and repairs, growing new business for large heat pumps and emergency power systems, and the international marine yacht service, the business unit Power Systems increased both order intake and revenue and results compared to the previous year.

The markets of the business unit Plant Engineering have developed stably. Drivers of high demand were recycling solutions in the plastics and tires sector, as well as mixing solutions in battery processing.

Realignment of the Strategic Business Units Construction Equipment

In the middle of the year, Zeppelin responded to the new market conditions and customer expectations with the restructuring of the Strategic Business Units Construction Equipment.

The war of aggression by Russia against Ukraine and the subsequent withdrawal from Russia changed the requirements in the respective regions and necessitated a restructuring. The previous units Construction Equipment Central Europe, Nordics, and Eurasia were consolidated into the business unit Construction Equipment Germany / Austria and the business unit Construction Equipment International.

Outlook for Fiscal Year 2024

Matthias Benz will join the Mana Board of the Zeppelin Group on July 1, 2024, and will succeed Peter Gerstmann as Chairman of the Management Board on October 1, 2024. Peter Gerstmann has been Chairman of the Management Board of the Zeppelin Group since 2010 and has been with the company for 24 years. He announced early on that he would like to hand over this responsibility. He will be available to advise and support until the end of the year.

The Zeppelin Group expects a challenging economic environment in 2024 due to the tense geopolitical situation and the resulting investment reluctance of international customers. The development of the market in Germany is significantly influenced by a still difficult situation in the construction industry, which expects a strong decline in sales and rentals of construction machinery and equipment. In contrast, there are growth opportunities in comprehensive solutions in rentals, in energy / heat generation, standby power supply systems, as well as a strong positioning within the future markets of recycling and battery mass processing, and pioneering technologies in assistance systems, machine control, and digital service solutions.

Caption: The Management Board of the Zeppelin Group (from left to right):

Peter Gerstmann, Alexandra Mebus, Christian Dummler, Fred Cordes

© Zeppelin GmbH

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