Dear Shareholders and Business Partners,

In the 2025 financial year, global political tensions and global trade barriers continued to shape the general conditions for our company. Nevertheless, we seized the opportunities that resulted from our global presence and diverse product portfolio and turned them into successful customer projects. It fills us with great pride that we were able to further improve KSB’s performance and make 2025 another record financial year in the company’s history.

Global situation

The outcome of the presidential elections in the USA marked the start of unprecedented upheavals in international trade relations. The unpredictable timing of customs tariffs and rate volatility led to great uncertainty and investment reticence. This was accompanied by the depreciation of the US dollar, which had a negative impact not only on trading decisions, but also on the earnings of companies reported in euros.

The atrocities of the wars in Ukraine and the Middle East shocked us profoundly. In 2025, the struggle for peace led to ruptures in long-established alliances. Geopolitical power shifts and an uncertain Europe posed major challenges for global corporations.

In response to these developments, KSB leveraged its strengths and pulled together even closer as a team.

Global positioning

One hundred years ago, KSB founded its first subsidiary abroad in Italy. This milestone was followed by the establishment of many more companies – a process of internationalisation that provided a strong foundation for the Group’s success today. In 2021, the new organisational structure introduced through Climb 21 ensured that a market-oriented approach is firmly anchored in our corporate structure. Since then, three Segments – including the Pump Segment, which covers six Markets – have been working closely together with nine Regions in a matrix organisation across national borders, enabling us to be close to our customers while continuously developing new business areas.

KSB’s global presence comprises a close-knit network of sales, production and service. Today, 37 production plants located worldwide ensure short delivery times.

In times of growing trade barriers, a regional focus and local value creation are real strengths. The first section of this Annual Report is therefore dedicated to these aspects.

Sales and after-sales

Customer centricity as a driver of growth was and is an important part of our corporate focus. We intend to further expand sales of our pumps and valves by implementing a range of measures, focusing on the standard business as well as the important OEM business. This is because original equipment manufacturers who integrate pumps into their own systems and then sell them on have special requirements.

In many countries, distributors are an important sales channel for standard products. Expanding our distributor network is therefore a high priority, as is an attractive product range to support their sales activities.

Once a pump is in operation, KSB SupremeServ offers an extensive portfolio of services, for example system maintenance and monitoring. Quality-assured original spare parts from KSB are used for these services. This key business area for customer satisfaction remains an important strategic lever, which we also focused on systematically in 2025.

The aim is for KSB SupremeServ to grow further by expanding its activities in all Market Areas and Regions. This will be supported by faster order processing times and spare parts manufacturing as well as through the continuous professional development of all service experts in our ten KSB SupremeServ academies.

Software transformation

One of the largest projects in the company’s recent history is the global software migration to SAP S/4HANA, with which we are also harmonising and standardising our core processes. Over the course of the financial year, around 1,000 employees were involved in preparing for the global roll-out, which is scheduled to take place at the beginning of 2027.

Capital Market Day

In September, KSB welcomed around 40 investors and analysts to the second Capital Market Day in Frankenthal. Valuable insights were provided by international managers from the Market Areas, Regions and KSB SupremeServ. Investor confidence was also reflected in the share price. In the financial year, it broke through the EUR 1,000 barrier for the first time. This is another achievement that we can look back on with pride.

Investments

KSB once again increased its investment volume to stabilise the growth it has generated in recent years and create further value for shareholders. At around 180 million euros, the 2025 investment budget was one of the highest in the company’s history.

Outlook

In view of the global political upheavals, we expect the general conditions to remain difficult in the new financial year, for example due to armed conflicts, trade barriers, economic downturns and negative currency translation effects.

Our success story over the last few years shows that KSB is resiliently positioned thanks to its business focus areas, product portfolio and organisational structure. Declines in certain areas can be compensated with growth in others. We will continue to consistently pursue our strategy of achieving a double-digit return on sales by 2030. In this way, we will once again generate substantial value for our shareholders, employees and business partners in the 2026 financial year.