Germany's 40 largest publicly traded corporations recorded their poorest revenue and profit figures in four years, according to a comprehensive analysis released Friday by consulting firm EY. The findings reveal mounting challenges for Europe's largest economy as its flagship companies struggle with declining international demand and shrinking profit margins.
Total revenue across all companies in the German stock index (DAX) fell 0.6 percent in 2025, while profits dropped four percent compared to the previous year, EY reported. The final three months of the year proved particularly challenging, with revenue declining 3.3 percent and profits plummeting 14 percent during the fourth quarter alone.
Regional performance varied dramatically throughout 2025. North American revenues experienced a "strong decline," falling four percent across DAX companies. Asian markets presented an even steeper challenge, with revenues contracting nine percent in the region. These declines offset gains elsewhere, as European operations managed to generate a three percent revenue increase.
Not all corporations faced crisis conditions in 2025. "53 percent of the companies recorded a revenue increase compared to the previous year, with four companies increasing revenues by more than ten percent," EY noted in its analysis.
Profit development proved equally uneven across industries. The financial sector, encompassing banks, financial service providers, and insurance companies, collectively achieved a record profit of 46.4 billion euros. Meanwhile, profits at all other companies declined 11 percent overall.
Workforce numbers mirrored the broader downturn. Total employment across DAX corporations shrank nearly one percent to 3.95 million workers worldwide, the consulting firm reported. This translates to approximately 32,000 positions eliminated globally compared to the previous year. EY compiled its analysis by evaluating business and quarterly reports from companies currently listed in the German stock index.
"Overall, the balance sheet for the past year is extremely modest," stated Henrik Ahlers, CEO of EY. "Revenue and profit are at multi-year lows, profit margins are shrinking and currently there is little indication of an imminent turnaround." Ahlers emphasized that the weak results from DAX corporations "reflect the state of the German economy" and demonstrate "the major challenges facing the location."
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