Faber-Castell accelerates transformation

The global “ONE Faber-Castell” strategy to be implemented more quickly than previously planned / Efficiency and synergy measures effected at global production sites / Austrian production plant to close in 2026

Stein, October 10, 2025. In the past 2024/25 fiscal year, Faber-Castell achieved slight currency-adjusted* sales growth of +0.3% despite difficult economic conditions. However, negative exchange rate developments caused group sales to decline by -2.7% to EUR 601.8 million. Profitability is below the previous year's level in the mid-single-digit percent range. The current challenging political and economic conditions, exacerbated by US tariff policy and global consumer restraint, continue to weigh on Group sales in the current fiscal year 25/26.

Against this backdrop, the “ONE Faber-Castell” corporate strategy, which was successfully launched three years ago and focuses on a series of growth initiatives and efficiency measures, is now being adapted in parts to the changed external conditions and rolled out at a faster pace. “The implementation of our global strategy has been highly successful. However, facing the increasingly dynamic and volatile global economic situation, it must be accompanied by a tighter schedule and further cost-cutting measures,” said CEO Stefan Leitz, commenting on the decision. With this step, Faber-Castell is looking ahead and laying the foundation for consolidating its global market position and achieving its long-term goals in a sustainable manner.

CEO Stefan Leitz sees the company's competitive advantages not only in brand awareness and quality, but also in its geographically diversified positioning. “As a global company, we must leverage our group strength even better in order to ensure competitiveness.” This means reevaluating the role of global production and distribution facilities, establishing global centres of excellence, and consolidating locations where necessary. “We are in the process of conducting a detailed analysis of all plants and branches and implementing the optimal scenario for each based on our long-term sales and profitability targets.”

First concrete measures affect Austrian branch plant in Engelhartszell

As part of the strategic “Global Production Footprint” project, one of the first measures to accelerate strategy implementation will be the closure of the Engelhartszell site in Upper Austria in summer 2026. The plant specializes in the production of “Textliner” highlighters. However, demand in this market has recently declined sharply. The 41 workers and employees affected will be offered fair prospects through training measures or socially acceptable arrangements. The production facilities are to be relocated to the Faber-Castell site in Lima (Peru). Delivery capability for customers will remain guaranteed throughout.

Creativity as a growth driver / Cosmetics as another strong pillar

CEO Stefan Leitz emphasizes the company's future prospects: “Despite the current challenges facing the industry, we see a wide range of growth opportunities with our global Faber-Castell brand: creativity remains anchored in our brand values and plays an important role in people's lives, especially in a time of rapid technological change driven by AI,” says Leitz. “Our goal is and remains to be the lifelong companion for artistic and imaginative creativity for a broad target group – from children and teens to professional artists.”

The cosmetics division Faber-Castell Cosmetics is also to be further expanded under new management as a high-revenue and profitable business segment. The experienced industry expert and top manager Dr. Franco Lucá has been appointed as Managing Director and took up his position on October 1, 2025.

*assuming stable exchange rates

Press contact:

Faber-Castell AG
Press Department
press-office@faber-castell.de