Car wash as a source of revenue: How WashTec combines the business models of Dover and Ecolab

Dover Corporation as a benchmark: The power of installed equipment

A look at Dover Corporation shows why hardware is the necessary foundation for any service business. With its vehicle wash solutions division, the US conglomerate has proven that it holds the key to the market, which also owns large-scale equipment. Whoever places the hardware in the gas station or car wash controls access to the customer. This is precisely where WashTec's historical strength lies: with more than 40,000 systems installed worldwide, the Augsburg-based company has the densest network in industry and thus direct access to operators. But unlike pure hardware conglomerates, where revenue often ends with the delivery of the machine, WashTec is increasingly using its installed base as a door opener to even more business. The machine is no longer the end product, but the platform on which higher-margin services are built.

The Ecolab effect: Why chemicals and services drive corporate value

Ecolab's business model shows how to extract maximum value from this platform. The US specialist in water, hygiene, and infection control is traditionally valued at high premiums on the stock market. The reason is the quality of its revenue: Ecolab sells not only one-off solutions, but essential consumables and services that are needed on a daily basis. These recurring revenues make the business crisis-resistant and predictable. WashTec consistently adapts this logic to the car wash business. With its own chemical division, AUWA, and innovative water treatment systems, the Company makes itself indispensable for ongoing operations. A car wash operator may be able to postpone the purchase of a new system for a year in difficult economic times, but they cannot stop ordering chemicals or performing maintenance without jeopardizing their business. This Ecolab effect provides WashTec with a steadily growing base of revenue that is largely independent of the cyclical investment decisions of gas station chains.

WashTec: The total technology optimizer

However, the real appeal of WashTec shares lies in the combination of scaling, as with Dover, and the continuity of Ecolab, and digitalization. Today, the Company is increasingly positioning itself as a "performance partner" for its customers. In an environment characterized by skilled labor shortages and rising cost pressure, operators are no longer looking for hardware alone - they are looking for solutions that measurably improve profitability. Digital tools such as "SmartCare" enable WashTec to remotely monitor machines, reduce downtime, and deliver real-time optimization recommendations. This is not only a tangible advantage in daily practice, but also a selling point for gas stations, which are increasingly operated by untrained staff. Remote diagnostics and support significantly reduce operational risk and service costs.

With the "EasyCarWash" app, WashTec also connects directly with end customers and enables flat-rate models similar to those offered by Netflix. WashTec is thus transforming itself from a seller of car wash systems to the architect of a profitable ecosystem in which hardware, chemicals, and software work together to maximize customer returns. For investors, this means that WashTec could close the valuation gap between a traditional cyclical machine manufacturer and a modern technology service provider. While the market is still relatively focused on the equipment business, the share of recurring revenue from services and chemical sales is growing steadily. Investors who understand that WashTec combines Dover's economies of scale with Ecolab's customer loyalty will see that the current phase represents a strategic shift toward higher profitability and reduced cyclicality.

WashTec offers growth and dividends

This realignment should also benefit the share price. In the current year, the share has already generated an attractive return of just under 20%. Measured by its market capitalization of around EUR 630 million, WashTec, which generates earnings per share of EUR 2.60, still has room for growth. Given its innovative business model, the Company offers upside potential and also boasts a dividend yield of more than 5%. In the German small-cap engineering sector, WashTec has a lot to offer that makes it attractive to investors.