HEIDELBERG Achieves Targets Amid FY 2024-25 Challenges
German press maker Heidelberger Druckmaschinen AG (HEIDELBERG) held its own in a difficult market environment in financial year 2024-25, achieving the targets it had set itself. According to preliminary calculations, the adjusted EBITDA margin remained stable at 7.1%, bringing the financial year to a successful close. The slightly lower sales volume compared to the previous year, rising wage costs, and expenses incurred for drupa 2024 were successfully offset by the cost-cutting and efficiency measures initiated. In the fourth quarter alone, the adjusted EBITDA margin doubled to around 10% compared to the previous year. At around €2.28 billion, sales were slightly below the previous year’s level (€2.395 billion). After a weak first quarter due to a reluctance to buy in the run-up to drupa, sales increased quarter by quarter in the financial year and closed with a particularly strong fourth quarter. At around €50 million, free cash flow was once again clearly positive (previous year: €56 million), which did not include any special items in the reporting year, such as from the sale of non-operating assets.
“We were able to achieve our financial year targets in a difficult economic environment and uncertain geopolitical conditions,” says HEIDELBERG CEO Jürgen Otto. “With a clearly positive free cash flow for the second year in a row, we have confirmed our financially solid development. The measures initiated to reduce personnel costs will help us to further strengthen our profitability in the new financial year.” The adjusted EBITDA margin is expected to improve further to around 8% in the next financial year 2025-26.
Rising Orders Lay Good Start to FY 2025-26
HEIDELBERG closed the past financial year with a high order intake. At over €600 million, incoming orders in the fourth quarter were up on the previous quarters of the financial year. The global and diversified positioning of the company has also allowed HEIDELBERG to benefit from the different growth dynamics in individual regions. The significant increase in incoming orders in the EMEA region in the fourth quarter deserves special mention, while the Americas showed a slight improvement at a still subdued level. After several previous quarters of strong growth, the Asia-Pacific region was below the previous year’s level, mainly due to the reluctance to invest ahead of the China Print trade fair.
Both core business areas saw more orders, with strong development in sheetfed printing and the packaging segment accounting for higher growth. Preliminary order intake for the whole year totalled around €2.430 billion, around 6% higher than the previous year’s figure of €2.288 billion. Overall, the improvement can be seen across both segments, with packaging solutions accounting for around 52% of orders for the year as a whole. Compared to the previous year, order intake in this strategically important segment recorded absolute growth of around 7%.
“Our global presence in over 170 countries around the world is paying off, especially in economically uncertain times,” says Dr. David Schmedding, Chief Technology & Sales Officer at HEIDELBERG. “Thanks to the rising order situation, we expect a better start to the new financial year compared to the previous year. The China Print trade fair in May should provide further impetus for orders. We are also keeping a close eye on the development of customs duties worldwide. However, there is no comparable manufacturer in the USA in our core business. In the global market environment, our competitors are likely to be affected by the US tariffs to the same extent, meaning that we will continue to maintain our leading position. Overall, we are therefore confident about the new financial year.”
Additional Orders Expected from China Print
As China is one of HEIDELBERG’s top three markets in terms of sales, its participation in this year’s China Print – the largest trade fair in the Chinese printing industry – is of great significance. Held from 15-19 May in Beijing, the event expects over 1,00,000 visitors, including groups of overseas customers.
The HEIDELBERG booth will showcase the latest innovations aimed at increasing efficiency and productivity, integrated hybrid production with offset and digital printing, developing new business opportunities, and digital transformation. The company intends to gradually expand its business and portfolio to offer customers integrated end-to-end solutions for the entire production process through automation, robotics, and software. As a system provider, the aim is to tap into the huge potential in the growing packaging segment.
In China, the annual printing volume in the packaging sector is growing by around 4%. HEIDELBERG is thus, also creating competitive advantages for its customers in China and intends to grow further in this market segment.
