STIHL: Site Loyalty Costs 175 Million
7 Min. read time
In 2025, STIHL invested around 175 million euros in its German headquarters-over half of the group’s total investments. At the same time, the Waiblingen-based company opened its first battery plant in Romania while tightening budgets at its German sites. Those searching for a contradiction here are missing the real lesson: this is what loyalty to a location looks like in 2026.
Key Takeaways
- 175 million for headquarters: Of the group’s 335.7 million euros in investments in 2025, more than half flowed into Germany. Revenue climbed to 5.48 billion euros.
- Contracts over promises: At the end of 2025, STIHL extended its employment and site security agreement for its headquarters until the end of 2027. That’s the real commitment-not the press release.
- Romania supports, not replaces: The new 125 million euro battery plant in Oradea drives the shift to battery power. Core production remains at the German headquarters.
- The honest flip side: The headquarters workforce shrank from 6,064 to 5,831. Today, loyalty to a location is measured by investment and contracts-not just headcount.
Related:Clearing the investment backlog / Preparing your business for succession
What STIHL really decided in 2025
The numbers from the annual report are clear. The STIHL Group grew its revenue to 5.48 billion euros in 2025, up from 5.33 billion the previous year. Its German headquarters-with eight sites-contributed 1.85 billion euros, a noticeable jump from 1.63 billion. The engine is running smoothly, even at the high-cost home base.
What matters is where the capital goes. Of the group’s 335.7 million euros in investments, around 175 million-more than half-went to the German headquarters, funding engine production and new facilities. A company betting its future abroad would allocate funds differently. STIHL invests where the value is already created.
Today, loyalty to a location is proven by contracts
Talk is cheap when it comes to commitments to a location-until it’s backed by action. At the end of 2025, STIHL delivered real proof by extending its employment and site security agreement for its headquarters by two years, through the end of 2027. For mid-sized business leaders, this is what counts: a binding contract with employees, not a marketing statement.
There’s an honest flip side to this. By the end of 2025, the headquarters employed 5,831 people, down from 6,064 a year earlier. Globally, the workforce grew to 20,246, while the home base saw a slight decline. STIHL is also running a cost-cutting program that will continue at least until the end of 2026. In 2026, loyalty to a location means investment and security agreements alongside a tighter cost structure. Those focusing only on headcount are missing the point.
Why the Romanian Plant Supports the Headquarters
The group’s first production site outside its established locations is in Oradea. A 125 million Euro investment, construction began in March 2024, inauguration set for October 2025-built in under 18 months. The factory will exclusively produce battery packs and battery-powered equipment, with a planned capacity of one million battery packs by 2026 and significantly more by 2028.
This is STIHL’s response to the battery transformation reshaping its market. The new capacity in Romania doesn’t compete with core production in Germany; it complements it by addressing a growing product segment. That’s the art of the strategy: building new volumes where they make economic sense without undermining the headquarters. An overseas plant only becomes a problem when it replaces the home base instead of relieving it.
What Mid-Sized Companies Can Learn
The STIHL case serves as a blueprint because it highlights the classic dilemma facing German mid-sized businesses: high location costs, technological change, and the simultaneous need to preserve jobs and expertise in the country. STIHL demonstrates that both goals can be achieved-if the sequence is right.
Three key takeaways apply across the board. First: If you want to retain your location, visibly invest in your core competencies instead of just managing costs. Second: A site security agreement builds trust with the workforce that no speech can replace. Third: Expanding capacity abroad is justified if it supports a growth segment and strengthens the home base. For executives facing similar strategic decisions, this offers a practical template.
Frequently Asked Questions
How much did STIHL invest in Germany in 2025?
Of the group’s total investment of 335.7 million Euros, around 175 million Euros-more than half-flowed into the German headquarters, including engine production and operational facilities. Revenue at the headquarters rose to 1.85 billion Euros.
Is STIHL cutting jobs in Germany?
The headquarters workforce declined slightly in 2025, from 6,064 to 5,831 employees, alongside a cost-reduction program running until at least the end of 2026. Globally, the workforce grew to 20,246. Meanwhile, an extended site security agreement safeguards the headquarters until the end of 2027.
Why is STIHL building a plant in Romania?
The Oradea plant exclusively produces battery packs and battery-powered equipment, addressing the market’s battery transformation. It complements, rather than replaces, core production in Germany by targeting a growth segment.
What is an employment and site security agreement?
Such an agreement legally commits a company and its workforce to securing a site and its jobs for a defined period. STIHL extended this for its headquarters until the end of 2027 in late 2025.
Can the STIHL model be applied to smaller businesses?
While the scale differs, the approach doesn’t. Visible investment in core competencies, binding agreements with the workforce, and targeted capacity expansion in the right segment work for mid-sized companies too-signaling a serious commitment to their location.
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