Management Board Report

Dear customers, partners, employees, and readers¹

The 2025 fiscal year was a year of special events, important strategic decisions, and groundbreaking developments for the Zeppelin Group. In a continuing challenging economic environment, we succeeded in further developing the Group in a targeted manner, advancing key future topics, and focusing even more strongly on customer orientation, efficiency, and operational excellence.

With consolidated revenue of around 4.4 billion euros and earnings before taxes of 135 million euros, this development is also reflected in the key financial figures. Despite economic and geopolitical uncertainties, a market environment that remains unfavorable in some areas, and general cost increases across the strategic business units, the Group as a whole remains largely robust. At the same time, targeted investments were made in organization, infrastructure, and digitalization in order to strengthen the foundation for sustainable growth and position the Group for the future.

Strategic realignment of the Group

Against this backdrop, the Zeppelin Group consistently pursued its strategic realignment in 2025. The aim is to support customers worldwide even more efficiently, in a more integrated and effective manner, while at the same time laying the foundation for sustainable growth within the Group. The focus was particularly on further developing the organizational structure, pooling expertise, and strengthening Group-wide cooperation.

A key milestone was the successful merger with the companies of PEPP Group B.V. in June 2025. This acquisition enabled Zeppelin to expand its international presence in a targeted manner and tap into additional service and market potential in the business with Caterpillar products, mainly in the Netherlands and Norway. At the same time, structures were further developed to leverage synergies and simplify processes.

As part of this process, the Strategic Business Units (SBUs) were also restructured. The previous SBUs Baumaschinen Deutschland & Österreich und Baumaschinen International were merged to form the new SBU Construction Industry & Mining. This reduced the total number of SBUs from five to four. This consolidation creates clear responsibilities, strengthens customer focus, and supports a consistent focus on efficiency.

A year of special highlights

In addition to its operational business, 2025 was also marked by special highlights for the Zeppelin Group that impressively demonstrated our performance, our partnerships, and our proximity to customers.

bauma 2025 developed into the most successful trade fair in the company's history. The joint appearance with Caterpillar generated a high international response, an exceptionally strong visitor turnout, and a very high order intake. The trade fair was a powerful signal for growth and efficiency in machine technology – for Zeppelin as well as for the entire industry.

At the same time, the Zeppelin Group celebrated its 75th anniversary. Since its entry in the commercial register in 1950, Zeppelin has developed from a German industrial company into an internationally active sales, service, and engineering group. The close and long-standing partnership with Caterpillar, the global market leader for construction and mining equipment, which celebrated its 100th anniversary in 2025, is exemplary for trust, continuity, and shared values. This partnership remains a key success factor for our customers and for the sustainable development of the Group.

Construction Industry & Mining

The newly tailored SBU Construction Industry & Mining benefited significantly from a strong bauma year in 2025. The trade fair was a key driver for customer dialogue and business deals, while also strengthening market positioning, targeted outreach to relevant target groups, and the further development of market development in key customer segments.

At the same time, it became clear that customers increasingly expect solutions that combine productivity, digitalization, and sustainability. Zeppelin has consistently addressed this demand by integrating machine technology, service, and digital applications even more closely in order to provide customers with reliable support throughout the entire life cycle of their machines. To this end, networked machines, assistance systems, and data-based services for condition monitoring, maintenance planning, and application optimization were further expanded.

The merger of the previously separate SBUs has sharpened market development, simplified processes, and laid the foundation for further growth, including through even closer cooperation across national borders. In addition, the area of responsibility was expanded to include additional regions, including the Netherlands and Norway.

The expansion of location-independent services shows that operational excellence is not just an aspiration, but a reality: with over 2,000 remote assignments in 2025, response times were shortened, downtime reduced, and customer productivity measurably increased. At the same time, Zeppelin has set an important milestone with the construction of a new central spare parts warehouse in Cologne, which will make spare parts supply even faster, more efficient, and partially automated in the future, thereby permanently strengthening service quality.

A cautious economic recovery in the construction equipment markets is expected for 2026, also supported by planned infrastructure investments. High raw material prices are encouraging investment in mining. At the same time, the environment remains characterized by uncertainties, such as geopolitical crises and trade conflicts, as well as generally high volatility. Against this backdrop, the focus will be on further strengthening operational performance and consistently focusing on customer needs: Efficiency gains, high service availability, and the expansion of digital services remain key levers for creating additional value and strengthening and expanding customer relationships in the long term – both in Germany and in international markets.

Rental

With over 195 locations in eight countries, the SBU Rental is one of the largest equipment rental organizations in Europe. In Germany, the SBU is one of the leading construction-related service providers. The 2025 fiscal year was marked by a continuing challenging market environment, but at the same time there were initial signs of economic stabilization. A particular highlight was the appearance at bauma 2025. The Zeppelin Rental Dome, an immersive experience space, attracted around 10,000 visitors and provided a platform for intensive customer discussions. Overall, the trade fair was an extraordinarily successful event for Rental, with a record number of orders received.

One focus was on sustainability and efficiency. A scientifically supported case study demonstrated for the first time the CO₂ savings effect of alternating traffic management. At the same time, the range of machines and solutions with alternative drive systems was further expanded. Investments in infrastructure, including the relocation and expansion of a competence center, also strengthened the operational conditions. In the area of digitalization, additional sales channels and communication offerings were established in order to reach customers and partners in an even more targeted manner.

Zeppelin Rental expects a moderate recovery in several European markets in 2026. The focus is on efficient processes and continuous improvement of the customer journey in order to provide reliable and cost-effective support to customers.

Power Systems

The 2025 fiscal year was marked by a challenging geopolitical and economic environment for the Power Systems SBU.

The service segment remained in high demand across all segments and made a significant contribution to the company's success. Positive developments were particularly evident in the markets of Denmark, the Czech Republic, and Ukraine, as well as in the business with emergency power systems for data centers and in the large heat pump segment. The position in the OEM business was further strengthened in some markets.

The focus was on customer requirements for availability, operational reliability, and efficiency. These were specifically supported by high-performance service offerings, digital solutions, and close cooperation across national borders. At the same time, the international presence was further expanded: Additional markets were opened up with the newly added areas in the Netherlands and Norway, as well as activities in France, Belgium, and Nigeria.

Despite ongoing uncertainties, Power Systems provided targeted technological impetus and strengthened its position in key areas of application. One focus was on the implementation of new energy and drive solutions. In the field of hybrid energy supply in particular, the successful transition from development to practical application was achieved, including a fuel cell and battery system power generator for construction sites, which was used in the field for the first time. This further expanded the company's expertise in the field of alternative drive technologies.

For 2026, Power Systems is focusing on stability, efficiency, and selected growth areas. Strategic priorities remain, among others, marine and offshore, emergency power and backup power solutions to secure the power supply of data centers, aftermarket, and applications in critical infrastructure. The further integration of the companies of PEPP Group B.V. will be used to further strengthen international performance and customer proximity.

Plant Engineering

The SBU Plant Engineering continued to be affected by challenging market conditions in 2025. In the core industries of chemicals, plastics, and food, investment appetite in Europe remained subdued, while positive momentum was seen in China and India.

The focus was on efficiency, cost control, and reliable project management. Efficiency programs implemented had an impact, even though increased material and energy costs continued to weigh on margins. The resilience of supply chains was strengthened by expanding the global supplier base, including in India.

At the same time, investments were made in the further development of the organization, processes, and collaboration. The globalization of the business, the harmonization of processes, and the expansion of digital capabilities created important prerequisites for greater customer focus and long-term competitiveness.

A cautious market recovery is expected for 2026. The strategic focus is on profitable growth through the expansion of the technology and services business, successful project implementation, and sustainable plant solutions in the areas of recycling, energy efficiency, and CO₂ reduction. The goal remains to ensure stable profitability and further strengthen the company's international positioning.

CSR

Sustainability is an integral part of the Zeppelin Group's corporate strategy and business decisions. It helps to ensure long-term stability, address risks at an early stage, and develop viable solutions for the future together with customers.

In fiscal year 2025, the focus was on integrating sustainable approaches even more strongly into the operating business. This included the targeted expansion of low-emission and electric solutions in the rental business, the extension of machine life cycles through professional reconditioning, and the first practical applications of alternative energy technologies. At the same time, further steps were taken to reduce the company's own ecological footprint – for example, through the further expansion of electromobility, renewable energy sources, and the consistent implementation of the modernization strategy for the sites toward CO2-neutral operation.

In order to effectively manage sustainability, the Group has also further improved its databases. The systematic and digital recording of energy and emission figures creates transparency, increases comparability, and enables measures to be specifically evaluated and controlled. The quality of this approach has also been confirmed externally, including through very good ratings from EcoVadis.

Sustainability thus remains an essential part of the Zeppelin Group's strategic development – with the clear aim of balancing economic performance, responsibility, and future viability.

HR topics

Our employees are a key success factor for the further development of the Zeppelin Group. To strengthen commitment and retention, the Group-wide Z VOICE Pulse Checks were introduced in 2025 to regularly gauge sentiment and identify areas where action is needed. The high level of participation underscores the importance of this dialogue.

At the same time, the Group made targeted investments in leadership, talent development, and employer attractiveness. Development programs, international talent formats, and structured onboarding offerings support the further development of the organization. These measures were supplemented by initiatives to promote an appreciative corporate culture, including in the areas of health, diversity, and work-life balance. With its new employer promise "Passion for Solutions. Go ahead. With Zeppelin.", Zeppelin also provided visible impetus in employer branding. External awards as an attractive employer confirm this course.

Finances

Creditreform Rating AG has assigned Zeppelin GmbH an overall rating of BBB+ with a stable outlook in an independent corporate issuer rating. In the previous year, the rating was A-. Creditreform cites the decline in financial figures compared to the previous year and the acquisition-related increase in debt in the current fiscal year as the main reasons for the adjusted assessment. With the acquisition of PEPP Group B.V. in June 2025, Zeppelin has significantly improved its market position and set the course for further growth. The integration of these companies will result in increased costs in the short term but will strengthen the Group's strategic positioning in the medium and long term.

Transformation

With the acquisition of PEPP Group B.V. – the largest acquisition in the Group's history — Zeppelin has taken a key strategic step toward growth and further strengthened its role as an international player. From a position of strength, Zeppelin is now positioning itself for the future and driving forward a transformation program to realize its full potential as a global, scalable player. An enhanced organizational structure and harmonized processes, data, and systems consistently put the customer at the center of attention. In this way, Zeppelin is creating the conditions to fully realize its potential – as a reliable solution provider for customers, as an attractive employer, in partnership with Caterpillar, and as an investment in the long-term success of the entire Zeppelin Group.

Outlook

After a challenging 2025, we are looking ahead. 2026 will continue to be marked by economic and geopolitical uncertainties. At the same time, the markets in which the Zeppelin Group operates are showing predominantly positive trends. Technological developments and the strategic realignment of the Group are opening up additional opportunities. Consistent customer focus and the utilization of Group-wide synergies will be crucial for continued success.

A key focus will be on the further integration of the companies that joined the Group in 2025. The Post-Merger-Integration (PMI) will be completed in 2026 in order to further harmonize structures, processes, and cooperation and to sustainably increase joint performance in the interests of our customers. The acquisition made in 2025 will thus make an important contribution to additional growth. The aim is to consistently realize synergies and further simplify operational processes.

At the same time, the Zeppelin Group will continue to strengthen and sharpen the Zeppelin brand internationally. The focus will be on a clear, uniform market presence and an even stronger focus on customer needs. Growth, efficiency, and operational excellence form the basis for offering customers reliable long-term solutions and further expanding existing partnerships. In doing so, the Group is continuing to align its strategic orientation in close coordination with Caterpillar's Strategy 2030 in order to leverage joint potential in the market, products, and services in a targeted manner and secure long-term competitiveness.

For me personally, 2025 marks my first full reporting year as CEO of the Zeppelin Group since I started in October 2024. During this time, my attachment to Zeppelin has continued to grow. Together with the entire management team, it is my goal to further develop this strong brand, make its values visible, and position Zeppelin for a sustainable future.

Consistent cost discipline, effective measures to secure earnings, and a willingness to collaborate across the Group and leverage global synergies will remain crucial to our success in the coming fiscal year.

On behalf of the entire management team, I would like to thank our customers and partners for their trust and close cooperation, especially in what continues to be a challenging environment. They are the benchmark for our actions and the driving force behind our continuous development. Our special thanks go to all employees of the Zeppelin Group. With their commitment, expertise, and strong focus on solutions, they have shaped the year 2025 and demonstrated what Zeppelin stands for. Their dedication, solidarity, and determination are the foundations of our success. I would also like to thank the employee representatives and the supervisory board members for their constructive dialogue, trust, and support on our shared journey. We would also like to thank Caterpillar for more than 70 years of trust-based partnership and for the close cooperation that contributes significantly to our success.

Matthias Benz
Chairman of the Management Board of Zeppelin GmbH / CEO

¹For reasons of better readability, the use of masculine and feminine forms of language has been dispensed with. All personal references are to be understood as gender neutral.