HomeIndices AnalysisIncrease in operating margin expected for HEIDELBERG in fiscal year 2025/26, prioritizing economic efficiency

Increase in operating margin expected for HEIDELBERG in fiscal year 2025/26, prioritizing economic efficiency

Heidelberger Druckmaschinen AG (HEIDELBERG), a leading technology company in the mechanical engineering industry, has announced its successful achievement of financial targets for the 2024/25 fiscal year. The company was able to maintain its sales and adjusted EBITDA margin from the previous year, with a significantly positive free cash flow of €51 million. This strong performance was supported by the positive impact of increased orders from the recent China Print trade show, providing a solid foundation for the start of the 2025/26 fiscal year.

With a global market position and a portfolio expansion in strategic growth markets, HEIDELBERG is expecting a slight increase in sales to around €2,350 million and an adjusted operating margin of up to 8 percent in the new financial year. The company sees potential for growth in various areas, including packaging and digital printing, software and lifecycle products. HEIDELBERG is also anticipating a boost from the Asia/Pacific region, with strong incoming orders from the recent China Print trade show.

CEO of HEIDELBERG, Jürgen Otto, commented on the company’s performance, stating, “Significant strategic and operational improvements have paved the way for further profitable growth. Our measures will make a substantial contribution to the expected increase in sales. Enhanced efficiency and performance will further boost our profitability. Encouragingly, the capital market is also increasingly acknowledging our focus on economic efficiency and liquidity.”

Despite a difficult market environment, HEIDELBERG was able to meet its targets for the 2024/25 fiscal year. The company’s adjusted EBITDA margin remained stable at 7.1 percent, with sales reaching €2,280 million. The company’s free cash flow was also significantly positive at €51 million. The positive momentum from the China Print trade show, along with a strong global and diversified setup, contributed to a high level of incoming orders and a corresponding increase in the order backlog.

Looking ahead to the 2025/26 fiscal year, HEIDELBERG is optimistic about its performance, with an expected sales increase to around €2,350 million and an adjusted EBITDA margin of up to 8 percent. The company has recently implemented a new segment structure, which will focus on product-oriented management and taking responsibility for results.

CEO of HEIDELBERG, Jürgen Otto, stated his confidence in the company’s future success, saying, “Thanks to the improving order situation and the positive momentum from the China Print trade show, we are expecting a better start to the new financial year than we had the previous year. Our new portfolio of very large format presses for packaging reaffirms our approach of gradually further expanding our portfolio in growth segments.”

Heidelberger Druckmaschinen AG has been in business for 175 years and is known for its innovation, quality, and reliability in mechanical engineering. With a global presence in 170 countries, a strong team of 9,500 employees, and a focus on growth and expansion into new markets, the company is well-positioned for continued success in the future.

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