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Jungheinrich: The Quiet Giant of Warehouse Automation
I. Introduction & Episode Roadmap
The year is 2011, and inside a cramped warehouse somewhere in Europe, something remarkable happens. A small pedestrian pallet truck—nothing more than a workhorse designed for moving goods a few meters at a time—begins operating on lithium-ion power. No fanfare, no press conference filled with venture capitalists. Just an unassuming yellow machine humming quietly between racks of goods, its operator blissfully unaware that they're piloting a technological bet that would reshape an entire industry.
In 2011, Jungheinrich was the world's first industrial truck manufacturer to launch a series-produced truck with a lithium-ion battery. What seemed like a modest technical improvement was, in reality, a strategic gamble that would prove transformative. While competitors hedged their bets on traditional lead-acid batteries and internal combustion engines, this Hamburg-based company went all-in on electric.
As of December 31, 2024, the company operates with over 20,000 employees worldwide and generates revenue in the billions of euros. This expansion has positioned it as a major player, ranking as the second-largest in Europe and third globally in the material handling equipment, warehousing, and material flow engineering sectors.
The numbers alone are impressive, but they don't capture the strategic discipline that made them possible. From those humble beginnings employing just 30 staff and achieving a first year turnover of DM 2.5m (ÂŁ1m), the Group, with its headquarters remaining in Hamburg, has developed to become the number 1 supplier of warehousing technology in Europe.
The central question that defines this story: How did a Hamburg workshop founded in post-war Germany become the world's third-largest intralogistics company—while remaining family-controlled for over 70 years?
The answer lies at the intersection of German Mittelstand excellence, a prophetic bet on electrification, a disciplined automation pivot, and the art of patient, generational growth. This is a company that proves you don't need Silicon Valley venture backing or aggressive M&A roll-ups to build a global industrial champion. Sometimes, the winning strategy is simply being right about the future and having the patience to wait for the world to catch up.
II. Post-War Germany & The Founding Vision
Picture Hamburg in 1953. The city still bears scars from the devastating firebombing of Operation Gomorrah a decade earlier. The rubble has been cleared, but the rebuilding continues. Amid this reconstruction, a 53-year-old engineer sees opportunity where others see devastation.
On 20 October 1899, company founder Friedrich Jungheinrich was born in East London, South Africa. In 1908, Friedrich Jungheinrich's father, Hermann Jungheinrich, founded the import and export company H. Jungheinrich & Co. in Hamburg on 3 December.
The Jungheinrich story doesn't begin in 1953—it traces back to the turn of the century. Friedrich's parents, Hermann Richard Jungheinrich (1864–1947) and Frieda, née Großkopf (1873–1948), both originally came from Thuringia. The family had built a respectable trading business in Hamburg, the gateway to German commerce and the nation's largest port.
Young Friedrich was no ordinary businessman's son. In February 1919, Jungheinrich began engineering studies at the Technical University of Hannover and completed an internship at Nagel & Kaemp AG in Hamburg the same year. In January 1921 he transferred to TU Munich. A year later he continued his studies at the Technical University of Berlin-Charlottenburg and completed an internship at the Gasmotorenfabrik Deutz. In Berlin he also passed the diploma examination and in 1925 received his doctorate in engineering with a thesis on logistical problems in the German petroleum industry.
This engineering pedigree would prove essential. Friedrich wasn't just a businessman—he was a technically sophisticated industrialist who understood both the mechanics of material handling and the logistics challenges his customers faced.
Hermann Jungheinrich died on 9 October 1947. The company, which employed five people at this time, was inherited in equal shares by Friedrich Jungheinrich and his brother Otto. In 1948, in-house production of hand trucks and pallet trucks began in Barmbek. On 22 October, Friedrich Jungheinrich registered "Ameise" as a brand name with the patent office.
The "Ameise"—German for "Ant"—would become iconic. The name captured perfectly what these machines were meant to do: carry loads many times their own weight, work tirelessly, and operate in tight spaces. It was a stroke of marketing genius that still resonates today.
In contrast to the USA, the new efficiencies offered by materials handling techniques were only adopted by European industry after the Second World War. A prime mover behind this development was Dr-Ing. Friedrich Jungheinrich who established a small workshop in northern Germany in 1953 to explore the potential benefits offered by modern handling innovations.
Founded on August 7, 1953, in Hamburg, Germany, by Dr. Friedrich Jungheinrich, the company began as H. Jungheinrich & Co. Maschinenfabrik. The vision was clear: to revolutionize internal material flow with robust and innovative solutions, a mission that gained traction during the post-war economic boom. A significant early achievement was the introduction of the 'Ameise 55' in 1953, the company's first electric four-wheel forklift, which marked a pivotal step towards more environmentally friendly and efficient material transport.
What's remarkable is that from day one, Jungheinrich bet on electric. This wasn't the obvious choice. Internal combustion engines dominated the global forklift market; electric seemed like a niche technology. But Friedrich Jungheinrich understood something his competitors didn't: for indoor warehouse work, electric offered advantages that would compound over time—no emissions, quieter operation, and eventually lower operating costs.
In the 1950s and 1960s, Hamburg and the Federal Republic of Germany experience the so-called "economic miracle". The export business becomes an important source of revenue for our company, and the first foreign companies are gradually founded. Jungheinrich sets the course for becoming a global corporation.
The Wirtschaftswunder—Germany's economic miracle—provided the perfect backdrop. As factories expanded and consumer goods flowed through newly built warehouses, the demand for efficient material handling exploded. Jungheinrich was positioned at the right place, at the right time, with the right products.
For investors, the founding years establish a crucial pattern: technical excellence combined with strategic foresight. Friedrich Jungheinrich wasn't building a forklift company—he was building an intralogistics company before that term even existed. The discipline to focus on electric power when competitors chose the easier path of internal combustion would echo through seven decades of strategic decisions.
III. Early Innovation & European Expansion (1953-1968)
Three years after founding the company, Friedrich Jungheinrich unveiled an innovation that would define the industry's trajectory for decades to come.
Jungheinrich has always led the field in electric warehouse trucks, setting new standards in internal logistics with a wide range of innovative developments. Principal amongst these was the launch in 1956 of the first reach truck with its retractable mast, a major step forward in increasing space utilisation in palletised warehouses.
The Retrak® reach truck was a masterpiece of mechanical engineering. By allowing the mast to retract, Jungheinrich's engineers solved a fundamental problem: how to operate powerful lifting equipment in narrow warehouse aisles. The solution seems obvious in retrospect—but in 1956, it represented a breakthrough that competitors struggled to match.
The first foreign branch was opened in Austria in 1956. With the Retrak proving popular domestically, Friedrich Jungheinrich wasted no time expanding beyond Germany's borders. Austria was the logical first step—similar language, similar business culture, and immediate access to Alpine transit routes connecting Northern Europe to the Mediterranean.
Key technological advancements include the introduction of the 'Teletrak,' the first automatically controlled and inductively guided forklift, in 1962, and the 'ETX' high-bay and narrow-aisle stacker in 1968.
The Teletrak deserves special attention. In 1962—decades before "automation" became a technology industry buzzword—Jungheinrich was already building autonomous guided vehicles. The Teletrak used inductive guidance to navigate warehouse floors without human operators, an astonishing achievement for its era.
In Britain, Jungheinrich UK Ltd's history goes back to 1963, initially registered as Jungheinrich (GB) Ltd. By the early 1960s, Jungheinrich had transformed from a regional German manufacturer into a pan-European player. France, Italy, Sweden, the Netherlands—one by one, sales offices opened across the continent.
A site in Friedrichsgabe in today's Norderstedt was acquired in 1966 and production was gradually relocated from Hamburg to this site until 1984. The move to Norderstedt signaled manufacturing ambitions that exceeded the Hamburg facility's capacity. This wasn't incremental growth—it was a transformation into a major industrial operation.
Then came tragedy.
On 28 January, our company founder Dr. Friedrich Jungheinrich dies at the age of 68. He leaves behind a healthy and prosperous company.
Friedrich Jungheinrich died before the market launch of the high-bay stacker, which he had developed himself. The company Jungheinrich he left behind had 1,239 employees with sales revenue of 75 million Mark one year after his death.
Friedrich Jungheinrich never saw his final innovation reach customers. The high-bay stacker—the ETX that would revolutionize how warehouses utilized vertical space—was introduced the same year he died. It's a poignant reminder that founders often plant seeds whose full harvest they never witness.
But what's most remarkable is what happened next: nothing dramatic. No boardroom coup, no fire sale, no outside buyers circling. After the death of our company founder, we remain an independent family business under the shareholder families Lange and Wolf.
These were the families of Friedrich's two adopted daughters—his wife Ilse's children from her first marriage. The founder had no biological heirs, but he'd structured the ownership so the company would remain in family hands. This governance decision, made sometime before 1968, would prove to be one of the most consequential in the company's history.
The early expansion years established Jungheinrich's competitive DNA: relentless product innovation, disciplined geographic expansion, and vertical integration of key technologies. By developing their own electric motors in-house and pioneering reach truck designs, the company built capabilities that couldn't be easily replicated by competitors simply buying components on the open market.
IV. The Family Legacy & Going Public (1968-1990)
The two decades following Friedrich Jungheinrich's death tested whether his company could survive the transition from founder-led enterprise to professionally managed family business. The answer came slowly, through patient capital allocation and operational discipline rather than dramatic headlines.
The Lange and Wolf families—descendants of Friedrich's stepdaughters—faced a classic governance challenge: how to preserve family control while accessing the capital and talent needed for continued growth. Their solution was elegant in its simplicity: split the company into two classes of shares, with voting rights reserved for the family.
The new plant in LĂĽneburg was built in 1989. Manufacturing expansion continued throughout the 1970s and 1980s. The Norderstedt facility expanded, LĂĽneburg came online, and production capacity grew to match Europe's insatiable demand for warehouse equipment.
For the first time, our company achieves a turnover of over one billion DM and employs 5,330 people. By 1987, Jungheinrich had crossed the billion Deutsche Mark threshold—a milestone that would have seemed impossible to the 30-person workshop of 1953. The company had grown more than 400-fold in revenue while maintaining its focus on electric warehouse equipment.
The 1980s brought a critical strategic expansion: internal combustion engine forklifts. The product range for Germany and Austria is completed with IC engine-powered forklift trucks. This wasn't a betrayal of Friedrich Jungheinrich's electric vision—it was a pragmatic acknowledgment that some applications, particularly outdoor work, still demanded combustion power. By 1983, Jungheinrich offered a complete product line.
Then came the decision that would shape the company's access to capital for decades: going public.
In 1990, the domestic companies merged and subsequently traded as a joint stock company, which went public with preference shares and was listed for the first time on 30 August 1990. The ordinary shares, and thus the entrepreneurial control, still remain with the families of the two daughters of the company founder.
The dual-class share structure deserves careful analysis because it represents a quintessentially German approach to public markets. Ownership is predominantly held by the descendants of founder Dr. Friedrich Jungheinrich through the families Lange and Wolf, who control 52.9% of the shares via 54 million ordinary shares managed by LJH-Holding GmbH and WJH-Holding GmbH. The remaining 47.1% consists of 48 million preferred shares in free float, publicly traded on the Frankfurt Stock Exchange, providing liquidity without a single external controlling entity beyond the family hold.
This structure offers the best of both worlds: liquidity for investors who want exposure to the intralogistics sector, while preserving family control over strategic decisions. The preferred shares carry a slightly higher dividend—a sweetener for accepting non-voting status—but no say in major corporate actions.
Of the total number of Jungheinrich AG shares (102 million), the public float is 47% (48 million no-par-value preferred shares). The 54 million ordinary shares that are not listed are held equally by the families of the two daughters of founder Dr Friedrich Jungheinrich. The preferred shares require the payment of a regular dividend.
Critics might argue this structure disadvantages public shareholders. The shares appear to me to be trading at less than 50 cents on the Euro, in other words well under their intrinsic value, but the very conservative management has a playbook from which they are not prepared to deviate and so share repurchases are off the menu. The conservative capital allocation—dividends over buybacks, organic growth over leveraged acquisitions—reflects the priorities of long-term family owners rather than quarterly-focused institutional investors.
But this conservatism has also produced remarkable consistency. The company currently has 102m shares outstanding, a number that has remained unchanged since 2005. No dilution, no equity raises, no stock-based compensation creating creeping dilution. What public shareholders buy is what they own.
The 1990 IPO marked Jungheinrich's transition from a large private company to a publicly traded Mittelstand champion. It wasn't a Silicon Valley-style liquidity event designed to make founders rich—the families kept their shares. It was a strategic decision to access capital markets while preserving the decision-making autonomy that had served the company well for four decades.
V. Post-Reunification Expansion & The Steinbock Acquisition (1990s)
The fall of the Berlin Wall in 1989 transformed Europe's economic geography overnight. For a Hamburg-based company accustomed to doing business primarily in Western Europe, the sudden accessibility of Eastern European markets represented both opportunity and challenge.
The first Eastern European branches were established in the Czech Republic and Hungary in 1991. Jungheinrich moved quickly. Within two years of German reunification, the company had planted flags in the two most promising Central European economies. These weren't tentative experiments—they were commitments to markets that would prove essential for future growth.
But the defining moment of the decade came in 1994, with an acquisition that would transform Jungheinrich from a warehouse equipment specialist into a full-line forklift manufacturer.
In 1994, Jungheinrich acquired the Steinbock und Boss Group. The production facilities in France, Great Britain and Spain were closed and production was relocated to Germany.
To understand why this deal mattered, you need to understand what Steinbock represented. When Jungheinrich was founded in Hamburg in 1953, production had already been underway for three decades at a location that would later become one of the Group's most important sites. One hundred years ago, at the turn of the year 1922/23, Maschinenfabrik München-Moosburg and Sähmaschinenfabrik Moosburg merged to form Steinbock. The ten-man company initially focused on agricultural machinery. But just a few years later, the focus shifted to so-called aids for soil transport. By the 1930s, Steinbock now employed well over a hundred people and was already producing solutions for loading and unloading processes.
After the Second World War, the development of forklifts was driven forward. The prototype of the first German electric forklift truck had already been constructed in Moosburg in 1943, but was not produced due to the war.
The historical irony is delicious: Steinbock had actually built Germany's first electric forklift prototype before Jungheinrich even existed. The acquisition reunited two parallel streams of German forklift innovation under one corporate roof.
Subsequent growth both organically and by acquisition—principally the purchase of Steinbock and Boss in 1994 with their emphasis on ic-engine forklifts—saw the Group's portfolio increase. The Boss Group, based in Britain, added internal combustion expertise that complemented Jungheinrich's electric focus. Suddenly, Jungheinrich could offer customers any forklift configuration they needed.
From a forklift pioneer, the company developed into one of the leading European manufacturers with a broad portfolio. Standards such as truck endurance tests on the company's own fully automated circular test track and the receipt of ISO 9000 certification as the first forklift truck manufacturer in Germany were trend-setting. With the takeover by Jungheinrich in 1994, this expertise flowed into the Group and thus created the best conditions for optimally positioning itself in the industry worldwide. The Bavarian production site in Moosburg thus became a nucleus for Jungheinrich's success today.
But here's where Jungheinrich's discipline showed itself. Rather than maintaining a portfolio of brands to serve different market segments—a common acquisition integration strategy—management made a bold choice: consolidation.
In 2002, the Group brands MIC, Steinbock and Boss were abandoned and since then, trucks have only been sold under the Jungheinrich brand name.
Eight years after the acquisition, all legacy brands disappeared. MIC (a French hand pallet truck manufacturer also acquired in the 1990s), Steinbock, Boss—all became Jungheinrich. This wasn't corporate vanity; it was strategic clarity. Every forklift leaving the factory bore the same name, backed by the same service network, supported by the same technology platform.
The geographic implications were equally significant. The production facilities in France, Great Britain and Spain were closed and production was relocated to Germany. Critics might call this German nationalism; supporters would call it manufacturing discipline. By concentrating production in Germany—primarily at Norderstedt, Moosburg, and Lüneburg—Jungheinrich gained quality control, reduced logistics complexity, and leveraged German engineering expertise.
The 1990s also saw important product innovations. With the "Retrak ETV 14", we develop the first reach truck for wheelchair users. The sales and technology divisions are organizationally separated, establishing a brand-independent production network.
For investors, the Steinbock acquisition illustrates Jungheinrich's approach to M&A: acquire to strengthen capabilities, not to grow for growth's sake. The deal added IC engine expertise and manufacturing capacity at a reasonable price. Then management did the hard work of integration, consolidating brands and rationalizing production over eight years. No quick flip, no financial engineering—just patient execution of a strategic vision.
VI. The Electric Bet & Lithium-Ion Revolution (2005-2020)
If the 1994 Steinbock acquisition represented tactical excellence, the lithium-ion bet that unfolded between 2005 and 2020 represented strategic prescience of the highest order.
"As a pioneer of electromobility in the warehouse, we were the first manufacturer to rely on efficient lithium-ion technology and thus changed our industry for good," explains Jungheinrich Board Member for Sales Christian Erlach.
This wasn't a gradual evolution—it was a deliberate, company-defining wager. While Toyota, KION, and other competitors maintained diversified portfolios spanning diesel, LPG, and various battery technologies, Jungheinrich went all-in on electric with lithium-ion as the enabling technology.
In 2011 Jungheinrich was the first manufacturer to present a lithium-ion vehicle ready for mass production.
The EJE 112i pedestrian pallet truck doesn't look revolutionary—it's a simple machine for moving pallets short distances. But its lithium-ion power system represented a fundamental shift in forklift economics. Users benefit economically and ecologically from fast recharging times, zero maintenance and a long battery life, as the option of short interim charging times increases the availability of electric stackers. This makes possible permanent fleet operation of up to 24 hours, seven days a week without requiring a battery change. Even after an interim charging time of just 40 minutes the high-performance energy cells with 360 Ah take on 50 percent of their capacity.
Consider the operational implications. Traditional lead-acid batteries required dedicated charging rooms, regular watering, and expensive battery swapping systems for multi-shift operations. By eliminating the need to change the battery, the fleet operator is relieved not only of the expense of buying a second battery, but also of the cost of battery changing equipment, special charging stations and the time required to perform the battery change.
Li-ion batteries last 3x longer than conventional technologies. The total cost of ownership advantages compound over time: fewer battery replacements, lower electricity consumption, reduced maintenance labor, and eliminated infrastructure costs for specialized charging areas.
But Jungheinrich didn't just adopt lithium-ion—they developed the full technology stack in-house. A key differentiator is Jungheinrich's in-house development of trucks, batteries, and chargers. This integrated approach ensures all components are engineered to work together, supporting energy management, operating times, and faster charging. With full control over the production process, Jungheinrich aims to guarantee consistent quality, fewer breakdowns, and the ability to adapt solutions to customer needs.
This vertical integration decision mirrors the company's 1956 choice to develop electric motors internally. By controlling the battery, charger, and vehicle as an integrated system, Jungheinrich created switching costs that competitors couldn't easily match. A customer couldn't simply buy a third-party lithium-ion battery and drop it into a Jungheinrich truck—the whole system was designed to work together.
Jungheinrich delivered its 100,000th truck with a lithium-ion battery. The ETV 216i reach truck was delivered along with 15 identical trucks to the Amazon warehouse in Leipzig, where some 140 other Jungheinrich electric trucks are already in use.
By 2022, the 100,000th lithium-ion truck milestone demonstrated market acceptance of the technology. And the customer? Amazon—one of the world's most demanding logistics operators, famous for squeezing every efficiency gain from their warehouse operations.
The environmental angle strengthened over time. Compared to a diesel truck of the same performance class, an electric truck with a lithium-ion battery emits less than half the CO2 during its entire lifetime, including its manufacture. By using electricity from renewable energy sources, the COâ‚‚ emissions of the vehicles in operation can be reduced by up to 90 percent. Lithium-ion technology thus makes a decisive contribution to making intralogistics more sustainable.
In 2018, Jungheinrich introduced the ETV 216i, the world's first reach truck with an integrated lithium-ion battery concept. The ETV 216i represented the ultimate expression of the lithium-ion strategy: not a truck retrofitted with a lithium-ion battery, but a reach truck designed from the ground up around lithium-ion's unique characteristics. Shorter, lighter, with better weight distribution—the battery became an architectural advantage rather than just a power source.
While the lithium-ion revolution unfolded, manufacturing footprint expanded globally. In 2009, Jungheinrich started the production of battery-powered low-platform trucks at its new plant in Landsberg in Saxony-Anhalt. The Landsberg facility brought production to former East Germany, leveraging lower labor costs and regional development incentives.
In 2013, a plant for warehouse and system trucks was inaugurated in Moosburg an der Isar, the new central warehouse for spare parts in Kaltenkirchen and the new plant for industrial trucks for the Asia-Pacific region in Qingpu. The Qingpu facility near Shanghai addressed the Asian market directly, avoiding import tariffs and providing local service capabilities.
For investors, the lithium-ion bet illustrates several key dynamics. First, technology leadership can translate into sustainable competitive advantage when combined with vertical integration. Second, environmental trends can create first-mover advantages—Jungheinrich was positioned for ESG-driven purchasing decisions years before they became mainstream. Third, the patience to develop a technology over a decade (from initial development around 2002 to the 2011 commercial launch) requires a long-term ownership structure that doesn't punish near-term R&D investment.
VII. The Automation Pivot & Strategy 2025+ (2015-Present)
By 2015, Jungheinrich faced a strategic inflection point. The lithium-ion bet was paying off, but the intralogistics industry was evolving beyond simple vehicle sales. E-commerce giants demanded fully automated warehouses. Labor shortages drove customers toward robotics. And competitors were racing to acquire automation capabilities.
At the end of 2015, the company also took over the Munich-based MIAS Group, which specializes in mechanical engineering in warehouse logistics. On 1 July 2015 Jungheinrich also expanded the Board of Management to include the Logistics Systems Division under Klaus-Dieter Rosenbach.
The MIAS acquisition signaled a fundamental strategic shift. The acquisition of MIAS Group by Jungheinrich AG was completed on October 1, 2015. Following the approval by the German Federal Cartel Office and the Austrian competition authorities, Jungheinrich expands its leading position as a provider of logistics systems.
Munich-headquartered MIAS Group is an intralogistics equipment manufacturer in the field of warehousing and transportation technology. It is world market leader in telescopic tables for pallets and specializes in stacker crane and load handling technology products. In fiscal 2014, the group generated revenue of some 40 million euros with more than 300 employees.
At €40 million in revenue, MIAS wasn't a transformational acquisition by financial metrics. But it brought critical capabilities: automated storage and retrieval systems (ASRS), stacker cranes, and the engineering expertise to design fully automated warehouses. The acquisition is a further building block in the resolute implementation of the Jungheinrich Group's growth strategy and a major step en route to enlarging the global footprint of the strongly expanding logistics systems business. By acquiring the MIAS Group, Jungheinrich is enlarging its technology portfolio in the field of automated warehouse solutions.
The timing proved prescient. Amazon's relentless warehouse automation—remember, they acquired Kiva Systems in 2012 for $775 million—was reshaping customer expectations. Every logistics operator, from third-party warehouses to retailers, began asking: how do we automate?
Automation, digitalisation and energy systems as key growth areas. Expansion of global presence with focus on Europe, China and North America. Optimisation and digitalisation of internal processes to increase efficiency. Anchoring sustainability as a foundation for all Group activities. Over the coming years, Jungheinrich will focus on increasing profitability, efficiency and sustainability.
Strategy 2025+, announced in late 2020, codified the automation pivot as official corporate strategy. On the basis of its 2025+ strategy, Jungheinrich is aiming for revenue of over €5 billion for the 2025 financial year. Jungheinrich has earmarked a sum in the mid- to high three-digit million euro range for targeted acquisitions and strategic partnerships. Organic revenue is expected to exceed €4.6 billion, based on an annual growth rate of at least 5 per cent.
The US market represented the biggest geographic gap. For decades, Jungheinrich had operated in North America through a partnership with Mitsubishi Logisnext rather than direct sales. This changed dramatically in 2023.
With the acquisition, Jungheinrich creates a strategic platform for future growth in the field of warehouse automation in the USA. By acquiring the Storage Solutions Group, Jungheinrich creates a strategic platform for future growth in the field of warehouse automation in the USA and thus takes an important step towards implementing its Strategy 2025+.
Jungheinrich has signed a share purchase agreement with Merit Capital Partners, MFG Partners and the management of Storage Solutions for the acquisition of 100% of the share capital in Storage Solutions. The total consideration agreed under the share purchase agreement consists of a purchase price of approximately USD 375 million.
Storage Solutions, headquartered in Westfield, Indiana, is a U.S. warehouse design, automation, and integration company with 170 employees and 45 years of experience in delivering turnkey, best-fit solutions to customers. Based on a technology-agnostic business model, the company has achieved a strong position in the attractive U.S. warehousing market.
At $375 million, Storage Solutions represented Jungheinrich's largest acquisition ever. But more importantly, it wasn't a forklift company—it was a systems integrator. Storage Solutions designs warehouses, installs automation equipment (from any manufacturer), and provides ongoing support. This positioned Jungheinrich to sell complete solutions rather than just vehicles.
Thanks to the acquisition of the Storage Solutions Group, we were able to significantly expand our presence in North America in 2023 and reported revenue of over 1 billion euros outside of Europe for the first time.
The robotics piece came together in August 2023. With the acquisition of Magazino, one of the largest development teams for mobile robots in Europe joins Jungheinrich. This will enable the intralogistics pioneer to expand its expertise in the field of mobile robots and software.
Founded in 2014, Magazino employs around 130 people and has one of the largest mobile robotics development teams in Europe. The company offers a powerful technology platform that enables logistics robots to also operate in a mixed human-machine environment. As a result, robots are able to intelligently navigate in the warehouse as well as selectively pick up and transport needed objects.
Magazino wasn't Jungheinrich's first robotics investment—The company has already started to dip its toes into the mobile robot world with its acquisition of autonomous mobile robot (AMR) provider arculus in November 2021. But the full Magazino acquisition (Jungheinrich had built up a 21.7% stake since 2020) brought software capabilities that would prove essential for orchestrating mixed human-robot warehouse operations.
In May 2025, management unveiled Strategy 2030+, setting even more ambitious targets. Targeting revenues of 10 billion euros and an EBIT ROS of 10 per cent on an organic basis by 2030. Strategic initiatives in the areas of global expansion, automation, portfolio extension and transformation. With Strategy 2030+, the company is aiming to build on its deep roots and great potential to transform into an even stronger global partner for its customers.
We expand in the focus regions of North America and APAC. We develop North America as our core market equal to Europe. We are a leading market player (Top 3) for material handling in the APAC region.
The ambition is striking: double revenue to €10 billion while expanding EBIT margins from roughly 8% to 10%. This requires both geographic expansion and a shift toward higher-margin automation solutions.
In addition, the acquisition of Invar is another step in the implementation of Jungheinrich's Strategy 2030+, which envisions targeted investments in automation solutions and the expansion of the North American business.
For investors, the automation pivot raises important questions. The forklift business has predictable unit economics and recurring service revenue. Automation projects are lumpier, more competitive, and require different sales capabilities. Can a company built on German manufacturing excellence succeed in software-intensive robotics? The acquisitions provide capabilities, but integration risk remains real.
VIII. Current State of the Business (2024-2025)
Despite a challenging economic environment, Jungheinrich AG reported an overall robust business performance in 2024. The Group's incoming orders, which comprise the business fields new business, short-term rental and used equipment, as well as after-sales services, came to 5,311 million euros, slightly above the previous year's figure (5,238 million euros). The decline in new business due to the difficult market environment was offset by growth in after-sales services. Group revenue amounted to 5,392 million euros, 2.8 per cent less than in the previous year (5,546 million euros).
The 2024 results tell a story of resilience amid headwinds. The development of Group revenue reflected the weakness of the German and North American markets in particular. Europe's industrial recession—Germany recorded two consecutive years of GDP contraction—hit Jungheinrich's core market hard.
"In light of the challenging market environment over the past financial year, we are satisfied with Jungheinrich's business development. In 2024, the global economy was dominated by political instability, geopolitical tensions and escalating trade conflicts. The export-oriented German economy, our domestic market, recorded the second recession in a row. We were only able to maintain EBIT return on sales at the prior-year level due to the measures we initiated at an early stage and consistently implemented to safeguard earnings," explains Dr Lars Brzoska, Chairman of the Board of Management of Jungheinrich AG.
Profitability remained stable despite revenue pressure. Incoming orders: 5,311 million euros. Revenue: 5,392 million euros. EBIT: 434 million euros. EBIT ROS: 8.1 per cent.
A significant aspect of the measures to safeguard earnings was Jungheinrich's restraint in its personnel policy, which was reflected in 2024 in a decline in the number of employees worldwide. Vacant positions were not immediately filled. As of 31 December 2024, the Jungheinrich Group had 20,922 (previous year: 21,117) employees (measured in full-time equivalents). This corresponds to a reduction of 195 employees, primarily in Germany. Of the total number employed, 41 per cent worked in Germany and 59 per cent abroad as at the balance sheet date.
The workforce reduction—modest by any standard—illustrates the disciplined approach to cost management that has characterized Jungheinrich throughout its history.
For 2025, management provided cautious guidance. In light of a persistently weak European economy and difficult market conditions, Jungheinrich expects incoming orders between 5.5 billion euros and 6.1 billion euros in 2025. Against the backdrop of the current interest rates and exchange rate ratios, the company anticipates Group revenue within the range of 5.4 billion euros and 6.0 billion euros in the current financial year.
Jungheinrich estimates that EBIT will amount to between 430 million euros and 500 million euros. Higher personnel costs for 2025 based on the latest collective wage agreements have also been taken into account. The company anticipates an EBIT return on sales of between 7.8 per cent and 8.6 per cent in the current financial year.
However, 2025 brought unexpected challenges. The Board of Management of Jungheinrich AG has adopted a comprehensive transformation programme, which was approved by the Supervisory Board on July 17, 2025. The programme includes personnel and location-related measures aimed at strengthening the Jungheinrich's global competitiveness. Key areas of focus include optimising production, management, and administrative structures. The programme is expected to deliver sustainable cost savings of around €100 million in the medium term. In connection with its implementation, one-off expenses of around €90 million are expected in the 2025 financial year.
In the first half of 2025, Jungheinrich AG recorded a subdued business performance overall in what remains a challenging market environment. Incoming orders for all business fields – new business, short-term rental and used equipment, as well as after-sales services – amounted to 2,743 million euros at the end of the reporting period. Orders on hand in new business amounted to 1,510 million euros as of 30 June 2025 and was thus slightly lower than the previous year's level. At 2,656 million euros, Group revenue was marginally higher than in the previous year. New business and after-sales service made a particularly strong contribution. At 210.5 million euros, EBIT in the reporting period fell 1.9 per cent on the previous year.
The transformation program represents a significant departure from Jungheinrich's historically steady growth. We are seeing a significant intensification of international competition with increasing pressure on prices in new business. Against this backdrop, we recorded a generally subdued business performance over the past six months and, considering the outlook for the second half of the year, we have recently had to make a significant downward adjustment to our forecast for 2025. The transformation programme that we announced recently, which includes personnel and location-related measures, sets us on a strategic course to strengthen our long-term global competitiveness.
For investors, the 2025 transformation program raises both concerns and opportunities. The €90 million one-time cost signals management recognition that structural changes are needed. The €100 million targeted savings, if achieved, would meaningfully improve margins. But the price competition mentioned in management commentary suggests the lithium-ion advantage may be narrowing as competitors catch up.
IX. Porter's Five Forces Analysis
Threat of New Entrants: LOW-MODERATE
The global forklift market is a consolidated market with the presence of some major market players, such as Toyota Industries Corporation, KION Group AG, Jungheinrich AG, Mitsubishi Logisnext Co., Ltd., and Crown Equipment Corporation. These players hold approximately 55–60% of the market share and have a well-established global presence, supply chain, and strong product portfolio.
Building a forklift business from scratch requires massive capital investment in manufacturing facilities, dealer/service networks, and R&D. Jungheinrich's in-house battery and motor production creates additional barriers that pure assembly competitors cannot easily replicate.
However, Chinese competitors present growing challenges. Chinese challengers Hangcha and Anhui Heli deliver competitive pricing and increasingly sophisticated electric offerings, expanding overseas via distributorships in Europe, MENA, and South America. The threat isn't from startups—it's from well-funded Asian manufacturers moving upmarket.
Bargaining Power of Suppliers: MODERATE
The company has energy expertise that is unique in the industry with over one million battery-powered trucks in use and especially energy-efficient lithium-ion technology solutions.
Jungheinrich's vertical integration in batteries and chargers significantly reduces supplier power for these critical components. However, semiconductors, specialized motors, and raw materials for lithium-ion cells remain exposed to global supply chain dynamics. The 2021-2023 chip shortage demonstrated this vulnerability.
Bargaining Power of Buyers: MODERATE
Large enterprise customers—Amazon, major retailers, automotive manufacturers—possess significant negotiating leverage. But Jungheinrich creates stickiness through several mechanisms:
The European rental fleet comprises around 38,100 rental forklifts with 600 vehicle variants with load-capacities ranging from 1 to 42 tons and lifting-heights of up to 17 meters.
The rental business creates ongoing relationships rather than one-time transactions. Service contracts, fleet management software, and integrated automation solutions further increase switching costs. Once a warehouse runs on Jungheinrich's warehouse management system, changing vendors becomes operationally complex.
Threat of Substitutes: LOW
The market is expected to grow due to growth in the e-commerce industry, rising demand for efficient material handling equipment, and stringent emission norms for industrial vehicles.
No viable substitute exists for forklifts and warehouse automation in modern logistics. Automated guided vehicles complement rather than replace traditional equipment. The structural shift toward e-commerce, with its demand for rapid order fulfillment, intensifies rather than diminishes the need for material handling solutions.
Industry Rivalry: HIGH
Toyota Industries Corporation (TICO) once again tops our list at No. 1. The company, which includes the Toyota and Raymond brands, saw its 2023 lift truck-related revenue come in at $16.32 billion.
At No. 2, KION Group's 2023 revenue for its Industrial Trucks and Services business reached $9.35 billion, converted from Euros (€8.479 billion).
Global leadership remains with Toyota Industries Corporation, KION Group AG, and Jungheinrich AG, which collectively hold roughly 53% of 2024. Toyota's 28% slice underscores its broad product span from pallet jacks to fuel-cell heavy trucks and its dense dealer network on five continents.
Jungheinrich is roughly one-third Toyota's size and about 60% of KION's scale. Competition for major contracts is intense, particularly as all major players expand automation offerings.
X. Hamilton's 7 Powers Analysis
Scale Economies: MODERATE
Jungheinrich concentrates production in Germany, prioritizing quality control over cost minimization. Jungheinrich AG opened a new manufacturing facility in the Czech Republic to meet the increasing demand for material handling equipment. The Chomutov facility addresses some cost concerns, but overall, Jungheinrich accepts higher manufacturing costs than Asian competitors in exchange for German engineering quality.
Network Economies: LOW
Limited direct network effects exist in the forklift business. However, the installed base of over one million electric trucks creates an ecosystem advantage: service technicians trained on Jungheinrich equipment, spare parts inventory positioned across Europe, and customers familiar with the operating interface.
Counter-Positioning: HIGH
This is Jungheinrich's most significant strategic power. In 2011, Jungheinrich was the world's first industrial truck manufacturer to launch a series-produced truck with a lithium-ion battery. Since then, lithium-ion technology has become the fastest-growing battery technology for industrial trucks.
The early commitment to electric and lithium-ion created a positioning that larger competitors couldn't easily match. Toyota and KION maintained diversified portfolios serving customers who wanted IC engines—a rational choice given historical demand patterns. But this diversification prevented them from matching Jungheinrich's all-in commitment to electric technology.
Switching Costs: HIGH
Jungheinrich AG offers both manual warehouse systems with the Warehouse Management System (WMS), radio data transmission services and radio data transmission equipment as well as fully automated warehouse systems with storage and retrieval machines. In addition, the company offers warehouse logistics services.
When Jungheinrich supplies forklifts, WMS software, automated storage systems, and ongoing service, the customer becomes deeply embedded in the Jungheinrich ecosystem. Switching vendors requires retraining operators, replacing software, and potentially reconfiguring warehouse layouts.
Branding: MODERATE-HIGH
Jungheinrich has been awarded the EcoVadis Platinum sustainability certificate for the fourth year in a row, consolidating its position among the top 1 per cent of the world's most sustainable companies.
With its win at the German Sustainability Award, Jungheinrich receives one of Europe's most significant honours for corporate responsibility. Following its nomination as a finalist, Jungheinrich has been named the winner of the German Sustainability Award for Companies in the Lifting and Conveying Technology category. Europe's largest accolade for ecological and social engagement recognises Jungheinrich's leading role in driving sustainable transformation.
In an era of ESG-driven purchasing, Jungheinrich's sustainability credentials create meaningful differentiation, particularly with European customers subject to emissions regulations and corporate sustainability mandates.
Cornered Resource: MODERATE
As a pioneer in li-ion technology, we have been developing this technology intensively for almost ten years, to provide you with greater performance for your warehouse. As the leading system supplier in intralogistics with our own in-house research and development as well as production facilities, we are able to provide batteries, charging units, vehicles and consulting services that are perfectly synchronized with each other.
The integrated development of batteries, chargers, and vehicles creates proprietary know-how that competitors cannot easily replicate. However, battery technology is advancing rapidly across industries, and Jungheinrich's lead may narrow as automotive-derived lithium-ion solutions become available.
Process Power: HIGH
From those humble beginnings employing just 30 staff and achieving a first year turnover of DM 2.5m, the Group has developed to become the number 1 supplier of warehousing technology in Europe.
Seven decades of accumulated manufacturing expertise, direct sales relationships, and service network development cannot be quickly replicated. The decision to maintain direct sales—rather than dealer networks—creates customer intimacy that competitors using independent dealers struggle to match.
XI. Competitive Benchmarking & Bear vs. Bull Case
The Competitive Landscape
In 2021, the global lift truck market was dominated by several key suppliers, with Toyota Industries Corporation leading the market with a substantial 28.44% share. Kion Group followed as the second-largest supplier, holding 13.78% of the market. Jungheinrich captured a 9.22% share, making it a significant player in the industry. Mitsubishi Logisnext held a 7.78% market share.
The gap between Jungheinrich and the leaders remains substantial. Toyota's nearly 30% share reflects decades of global presence and manufacturing scale advantages. KION, through its Linde, Still, and Dematic brands, combines European forklift strength with systems integration capabilities.
KION and Jungheinrich AG differentiate through integrated automation, robotics, and fleet-management software suites.
The battleground has shifted from pure forklift sales to integrated warehouse solutions. Here, Jungheinrich's acquisitions—Storage Solutions, Magazino, MIAS—position it competitively. But KION's Dematic subsidiary represents a formidable automation competitor with longer track record in large-scale systems.
The Bull Case
Electrification Tailwinds: The transition from IC engines to electric accelerates, driven by emissions regulations and total cost of ownership advantages. Electric forklifts led with 69.20% of forklift trucks market share in 2024, whereas hydrogen fuel-cell forklifts are expanding at a 10.60% CAGR through 2030. Jungheinrich's decade-long lithium-ion lead positions it to capture share as the market shifts.
Automation Growth: The company expects key market drivers to remain favorable even in times of geopolitical volatility: The demand for material handling solutions is anticipated to continue to increase, in particular in the area of warehouse automation which is estimated to grow by 8 per cent on average over the next five years. If automation grows at 8% annually while traditional equipment grows slower, Jungheinrich's pivot toward systems integration could drive premium growth.
North American Expansion: Storage Solutions provides a beachhead in the world's largest economy. The acquisition significantly strengthens Jungheinrich's global presence, particularly in the rapidly growing U.S. market. Storage Solutions' market coverage provides Jungheinrich with access to key logistics hubs in the U.S. and the opportunity to expand into Canada and Mexico.
Family Ownership Stability: The dual-class structure ensures long-term strategic thinking. Management can invest through cycles without activist pressure for short-term optimization.
The Bear Case
Margin Pressure: We are seeing a significant intensification of international competition with increasing pressure on prices in new business. As Chinese manufacturers improve quality and competitors catch up on lithium-ion, Jungheinrich's technology premium may erode.
European Exposure: With roughly 80% of revenue from Europe, Jungheinrich remains heavily exposed to the continent's economic cycles. Germany's industrial recession disproportionately affects the company.
Scale Disadvantage vs. Toyota: At roughly one-third Toyota's size, Jungheinrich cannot match the Japanese giant's R&D spending or manufacturing scale. In a technology race—whether hydrogen fuel cells or advanced automation—Toyota's resources provide structural advantages.
Integration Risk: Multiple acquisitions (Storage Solutions, Magazino, MIAS) require successful integration. The transformation program announced in 2025 suggests management recognizes operational inefficiencies that need addressing.
Key Metrics to Watch
For investors tracking Jungheinrich's ongoing performance, three KPIs deserve particular attention:
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Lithium-Ion Equipment Ratio: The percentage of new trucks sold with lithium-ion batteries versus traditional lead-acid. Management targeted over 70% by 2025. This metric measures both market acceptance of Jungheinrich's technology bet and the company's ability to maintain pricing premiums in a growing category.
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Non-European Revenue Share: Currently around 20%, with a target to increase significantly under Strategy 2030+. Progress here indicates successful geographic diversification away from the mature European market.
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EBIT Return on Sales: Currently around 8%, with a 10% target for 2030. This margin metric captures the success of automation expansion (higher margins) versus pressure from commodity forklift competition (lower margins).
Conclusion: The Quiet Compounder
Jungheinrich represents something increasingly rare in global capital markets: a family-controlled industrial company executing a multi-decade technology transition with discipline and patience.
The electric bet that began with Friedrich Jungheinrich in 1953 evolved into the lithium-ion revolution of 2011. The automation pivot of 2015 continues through today's robotics and systems integration push. At each inflection point, management made bold technological bets while maintaining operational conservatism—investing heavily in R&D and capabilities while avoiding the leverage and aggressive M&A that characterizes many industrial rollups.
"Our entire team at Jungheinrich is focused on passionately empowering our customers so that they can keep their promises to their clients. Based on this compelling proposition, we have already expanded our strong position in recent years. We now intend to generate significant further growth on a global scale with Strategy 2030+. In a competitive market, we want to and must grow even faster and become more profitable."
The €10 billion revenue target for 2030 represents roughly doubling the business from 2024 levels—ambitious but not impossible given tailwinds from electrification and automation. Whether Jungheinrich achieves these targets will depend on successful North American expansion, integration of recent acquisitions, and continued technology leadership as competitors close the lithium-ion gap.
What won't change is the fundamental ownership structure. The Lange and Wolf families' control ensures strategic continuity regardless of quarterly earnings volatility. For patient capital seeking exposure to industrial automation and electrification trends, Jungheinrich offers something the market often undervalues: the ability to think in decades rather than quarters.
In a world obsessed with disruption, Jungheinrich demonstrates that disciplined execution of a long-term vision can compound quietly into industry leadership. The ant keeps carrying loads many times its weight, one warehouse at a time.
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