Switzerland · Delayed Price · Currency is CHF Rieter Holding AG Earnings Call Transcripts
Fiscal Year 2025
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2025 saw a 20% sales decline and near-breakeven EBIT amid market weakness, but strategic progress included the Barmag acquisition and strong growth in China. 2026 is expected to be a transition year, with sales of CHF 1.3–1.5 billion and EBIT margin of 0–3% as synergies and restructuring benefits phase in.
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Order intake and sales declined year-over-year due to postponed investments and weak demand, but Q3 2025 showed improvement. The Barmag acquisition is on track with financing secured, though leverage will rise. Full-year 2025 sales guidance was lowered, and a negative net result is expected.
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H1 2025 saw a 20% sales decline and near break-even EBIT amid tariff-driven order delays and market uncertainty. After-sales grew 25%, and guidance for 2025 sales was lowered to CHF 750–800 million, with a focus on cost control and operational leverage as the Oerlikon Barmag AG acquisition progresses.
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The acquisition creates a global leader in textile machinery, combining strengths in natural and man-made fibers and expanding into high-growth markets. The CHF 850 million deal is fully financed and supported by major shareholders, with conservative synergy estimates and a soft integration approach. Closing is targeted for Q4 2025.
Fiscal Year 2024
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Order intake surged 34% year-over-year, but sales fell 39% amid a slow market recovery. EBIT margin held at 3.3% due to cost discipline, with a positive outlook for after-sales and automation. 2025 guidance anticipates flat sales and a 0-4% EBIT margin.
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Strategy centers on sustainability, automation, and expanding After Sales and Components to balance cyclicality and boost profitability. Financial targets include a 50/50 business mix, 4%-8% EBIT margin in mid-cycle, and >10% return on operating assets, with cost reductions and selective M&A supporting growth.
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Order intake rose 24% year-over-year, but sales fell 44% due to prior weak demand. Cost savings from the Next Level program supported a positive EBIT margin of 2.1%. Full-year sales are guided at CHF 900 million-1 billion, with margin improvement expected as volumes recover.