Decision in May

Why firefighting equipment supplier faces major upheaval

Rosenbauer, the Upper Austrian firefighting equipment supplier, is facing a landmark decision at its next Annual General Meeting. A capital increase could decisively shift the ownership structure after more than 150 years.

Rosenbauer's latest balance sheet figures are pointing upwards again; after losses, the Group is profitable again and revenues have broken through the one billion euro mark. Nevertheless, the firefighting equipment supplier is facing a major upheaval this year.

In mid-May, the Annual General Meeting will vote on a capital increase. This will fundamentally change the ownership structure. Rosenbauer Beteiligungsverwaltung is currently a 51% shareholder. However, if the family does not participate in the capital increase and buys no or hardly any additional shares, its stake will fall below 50% for the first time since the company was founded over 150 years ago, which will reduce its power in the company.

CEO Sebastian Wolf is currently examining with the rest of the Management Board what the capital increase will look like in concrete terms.(Bild: Harald Dostal)

It is virtually certain that no fresh capital will come from the family. Although individual family members could also buy additional shares, it will hardly be possible to hold the majority. This would "dilute" the shares. The placement of a hybrid bond already failed last year because the family did not have the capital strength. The Group must therefore look for other investors. According to Wolf, numerous talks are currently underway.

Over 20 shareholders in family holdings
According to the company register, the investment management company has over 20 shareholders, with Reinhild Hawelka holding the largest share at around 23 percent, making her one of the richest Austrians. The second largest shareholder is Alexander Pietsch, who is also the managing director. He is the cousin of Dieter Siegel, the last CEO from the family.

Siegel was surprisingly replaced in the summer of 2022 by Sebastian Wolf, the first CEO without a family connection to Rosenbauer. Because equity was so low and revenues and earnings were below expectations, he had to make concessions to banks. In addition to the capital increase, this also means that no dividend will be paid this year.

There were also recent personnel changes. Chief Technology Officer Daniel Tomaschko left, and restructuring manager Thomas Biringer took over on an interim basis. Wolf is aiming for an EBIT margin of 5 percent again this year, with turnover set to climb to EUR 1.2 billion.

Despite the global crises, the market environment is developing positively, the order books are full and at a record level. Analysts rate the share, which recently fell sharply, as a buy. Future markets are the Middle East and America, and growth is also expected in e-mobility. In order to fully focus on global expansion, however, no stone is to be left unturned in Leonding, Upper Austria.