Encouraging first half of financial year 2025/2026 for HEIDELBERG thanks to much improved profitability
- Written by Media Outreach
- Sales after six months around 8 percent higher than equivalent period of previous year
- Adjusted operating result (EBITDA) double the previous year's figure
- Plan for the future on track – personnel and efficiency measures starting to have an impact
- HEIDELBERG maintaining strong market position worldwide
- Full-year forecast confirmed despite difficult economic climate
At Labelexpo in Barcelona, digital innovations for the growth market of label printing, such as the new Gallus Five, proved a particular draw for customers.
The adjusted operating result (EBITDA) was double the previous year's figure. It increased to € 63 million (equivalent period of previous year: € 31 million), which corresponds to an EBITDA margin of 6.4 percent (equivalent period of previous year: 3.4 percent). Strict cost discipline and the measures set out in the plan for the future have had a positive impact. For example, production costs and total working costs improved compared with the corresponding period of the previous year. Cost-cutting resulting from the plan for the future, especially on the basis of contractual agreements, will continue to have a positive effect in subsequent quarters and years. Incoming orders after six months remained stable at € 1,116 million, following the previous financial year's strong first half-year due to drupa (equivalent period of previous year: € 1,273 million). The incoming orders figure for the second quarter was € 551 million (previous year: € 571 million). The US government's complex tariff regulations led to some orders being postponed, but the company's success at the Labelexpo industry trade show in September sent out a strong message. With orders running into the double-digit million-euro range, HEIDELBERG is underlining the strategic importance and growth potential of its label printing business. HEIDELBERG maintaining strong market position worldwide "HEIDELBERG is holding up better than the competition in a very challenging market environment and is once again demonstrating that our strategy is working and bearing fruit. The positive developments in our core segments confirm we are headed in the right direction. The significant improvement in our profitability is particularly encouraging – a clear sign that our measures are proving effective," says CEO Jürgen Otto. The free cash flow after six months was € -63 million. Although still negative, as expected, it was much improved compared with the first half of the previous financial year (€ -102 million). Achieving break-even, the net result after taxes after six months was far better than in the previous year (€ -35 million). The result for the second quarter was positive, at € 11 million (equivalent quarter of previous year: € 7 million). In the Print & Packaging Equipment segment, half-year sales rose to € 463 million (previous year's figure: € 395 million). In the reporting period, the Digital Solutions & Lifecycle segment achieved sales of € 493 million (previous year's figure: € 491 million). An order from a customer in China for ten Jetfire 50 digital printing systems and several digital Gallus label machines was particularly encouraging. Further orders for the Gallus One digital label printing system were also placed at the Labelexpo trade show. Sales after six months in the Technology Solutions segment totaled € 29 million (previous year's figure: € 29 million). The partnership with VINCORION Advanced Systems GmbH in the defense sector, which was announced in the spring, is going according to plan. Adjusted EBITDA improved in all the segments. "Our strategy is working, with packaging and label printing driving our core business," says Dr. David Schmedding, Chief Technology & Sales Officer at HEIDELBERG. "At Labelexpo in Barcelona, our digital innovations for the growth market of label...