Festo: Optimistic Start for 100th Anniversary Year
April 1, 2025
Solid 2024 financial results despite a difficult environment
The Festo Group achieved a positive result in the financial year 2024, on par with the previous year, as announced by the Chairman of the Management Board, Thomas Böck, at a press conference held during the Hannover Messe. The innovation leader significantly expanded its portfolio in electric and pneumatic automation, particularly in the areas of control technology and digital solutions, software and AI. The company will continue to invest heavily in innovations in the future. This enables Festo, as a partner in motion, to offer integrated and seamless drive technologies from a single source –– complemented by a comprehensive range of technical training and education solutions.
Financial year 2024/2025
The Festo Group recorded a solid financial year 2024 in a difficult environment, with a positive result at the previous year’s level. Sales fell slightly to 3.45 billion euros (down 5.5% compared to the previous year’s 3.65 billion euros).
Uncertainty in the global economy curbed higher investments by customers in machine and plant engineering in almost all industries and regions, particularly in Asia and Europe. The electronics industry, a strong growth engine for the global economy and for Festo, did not yet show the expected turnaround in 2024. The USA, South America and India developed positively, as did the technical education sector with the Didactic division.
“We are pleased with our business result and will continue to invest heavily into our future,” said Thomas Böck, Chairman of the Management Board of Festo.
Festo invested 8.8% (previous year 7.7%) of its turnover in research and development last year – putting the company above the industry average. The innovation leader significantly expanded its portfolio in electric and pneumatic automation, particularly in the areas of control technology and digital solutions, software and AI.
“Innovation has been in our DNA for 100 years. Our innovative strength is the decisive factor in our success. Last year, we again significantly increased our R&D rate,” said Thomas Böck.
The number of employees remained at the previous year’s level of around 20,600 – 8,200 (previous year: 8,400) were employed in Germany and around 12,400 (previous year: 12,200) abroad.
“We kept the number of employees stable during the downturn and continue to hire new apprentices and skilled workers – especially in forward-looking areas such as digitalization, software and AI,” emphasized Böck.
Festo is strongly positioned in all regions to develop innovative solutions for customers fast and flexibly on site. To this end, the company is further expanding its global development, production and logistics locations, as well as its supply chain. In doing so, Festo is focusing on increasing regionalization “local for local” – also to shorten transport routes and value chains, making them more resilient and minimizing emissions.
“Alongside China, India as well as North and South America are gaining in importance to us as growth markets. However, we also want to continue to be strong for our customers in Europe. This determines our further international orientation. Today, more than ever, it is important to be able to act decentrally in all regions of the world,” said Thomas Böck.
The growth prospects for the automation market are good. Festo intends to continue growing in existing and new sectors such as the Semiconductor Industry, Life Sciences, Electromobility/Batteries and Hydrogen.
“We are an automation partner for many industries. That is why we are looking with slight optimism into the current financial year. We are well positioned to continue growing as soon as the global economy recovers. We also expect a good result for 2025 in a challenging environment,” said Böck.
The long-term perspectives for the automation market are encouraging: automation will play an increasingly important role in the industrial transformation of existing and new industries.
Festo is entering the next century with the claim “Automation for a world in motion”, offering seamless automation as best partner for the customers’ motion requirements.
“We can offer pneumatic and electric drive technology with seamless connectivity – including software and AI solutions. That’s what makes Festo unique. With automation and technical education, we can grow and make our customers productive and successful, while contributing to a sustainable future for us all – now and in 100 years,” added Böck.
Festo at a glance
Festo, one of the world’s leading suppliers of automation technology and technical education, is deploying its products and services to meet the challenges of digitization and smart production. Founded in 1925, the family-owned company based in Esslingen, Germany supports a wide range of needs for advanced solutions in factory and process automation. In Canada, Festo has been supporting Canadian industry for 50 years, continuously elevating the state of manufacturing in this country with innovative products, optimized motion control solutions and unrivalled support.
Globally, some 300,000 customers put their trust in the company’s pneumatic and electric drive products and technology. In addition, Festo Didactic provides state-of-the-art training equipment and educational programs for industrial companies and educational institutions – about 56,000 customers worldwide. The Festo Group registered sales of €3.45 billion in the 2024 financial year and is represented worldwide at 250 locations with about 20,600 employees. About 8.8% of its annual turnover is invested in research and development.
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The year was 1975. Newly created Festo Canada joined an industrial eco-system feeling the stirrings of accelerating technological change, a transformation that would become known as Industry 3.0. PLCs, articulated robots, computer numerical control systems were beginning to proliferate. The first US patent for Ethernet was filed that year. (That was also the year Festo launched the world’s first standard pneumatic cylinder series).
So much more was to follow, leading up to Industry 4.0 as we are experiencing today – digitalization, the Industrial internet of Things, cloud computing – and beyond, as industry begins widespread adoption of artificial intelligence and machine learning, with a growing emphasis on sustainability.
