SHERIDAN, WYOMING – Feb. 15, 2025, Heidelberger Druckmaschinen AG (HEIDELBERG) has announced its financial results for the first nine months and the third quarter of its 2024/2025 financial year (ending December 31, 2024), reporting figures in line with expectations and a significant improvement in key operating results during Q3. The company highlighted a strong order backlog, positioning it for a robust final quarter and confirming its full-year forecast.
Q3 Performance Highlights: Improved Profitability and Order Intake
HEIDELBERG saw a marked improvement in its adjusted EBITDA margin for Q3, reaching 9.2 percent (compared to 5.7 percent in the same quarter of the previous year). This improvement was attributed to high capacity utilization and intensified cost-cutting measures. Sales for Q3 reached €594 million, matching the previous year's figure. Notably, incoming orders for Q3 increased by 8.3 percent to €550 million, outperforming the broader mechanical and plant engineering sector. The EMEA region (+16 percent) and the Packaging Solutions segment (+15 percent) were the primary drivers of this growth.
"We have succeeded in continuously improving our sales and operating result quarter by quarter in a difficult economic environment. Thanks to our high order backlog, we can confirm that we will achieve our targets for the year," said Jürgen Otto, CEO of HEIDELBERG. "And we will drive down costs further still in the coming year by implementing our plan for the future and boosting efficiency. This cost discipline will have a positive effect on our profitability, which should improve further in the next financial year."
Financial Details and Cash Flow
While the adjusted EBITDA after nine months stood at €86 million (down from €135 million in the previous year, adjusted), the adjusted EBITDA for Q3 increased to €55 million (up from €34 million year-over-year). The adjusted EBITDA margin improved to 9.2 percent. However, net provisions of €29 million for planned labor cost reduction measures impacted the Q3 EBITDA, resulting in a total of €26 million (down from €34 million). This led to a net loss after taxes of €-7 million in Q3 and €-42 million after nine months.
Free cash flow after nine months was €-97 million, but Q3 saw a significant improvement, reaching a positive €4 million. “Our successful management of net working capital played a key role in achieving a positive free cash flow despite high inventories due to the order situation,” said HEIDELBERG CFO Tania von der Goltz. “The big improvements we are expecting in the results for the final quarter and the reduction of inventories by the end of the financial year will have a positive impact on the free cash flow,” she added.
Packaging Segment Drives Growth
The Packaging segment continues to be a major growth driver for HEIDELBERG. Incoming orders in this segment increased by approximately 11 percent to €959 million for the first three quarters and by 15 percent in Q3. The company's positioning as a systems integrator and total solution provider is resonating with customers seeking sustainable and high-quality packaging solutions. “Packaging printing is the current growth sector for the printing industry, including HEIDELBERG. In particular, the product innovation around the Boardmaster for high-volume packaging printing meets customer needs,” said David Schmedding, Chief Technology & Sales Officer at HEIDELBERG. “We are looking to successively expand our business and our portfolio in this market by using automation, robotics, and software to offer our customers integrated end-to-end solutions for the entire manufacturing process,” he explained. In the Print segment, nine-month incoming orders rose by 4.4% to €858 million.
Growth Strategy Targets Over €300 Million in Sales Potential
HEIDELBERG is actively pursuing growth opportunities in its core market, encompassing packaging and digital printing, software, and lifecycle services. The company's collaboration with Canon on digital presses is expected to significantly boost future sales of digital print solutions. HEIDELBERG also aims to expand its portfolio in green technologies, including high-precision plant engineering, automotive, charging infrastructure and software, and new hydrogen technologies. A prototype hydrogen electrolyzer is slated for completion in the summer and will be showcased for in-house application. The overarching goal is to collaborate with customers, application and technology partners, and suppliers to develop a market-ready system for industrial-scale hydrogen production. HEIDELBERG is targeting Amperfied to be the top systems supplier for EV charging solutions.
Through these strategic initiatives, HEIDELBERG anticipates overall growth potential exceeding €300 million by the 2028/2029 financial year, combined with enhanced performance and efficiency.
Full-Year Forecast Confirmed and Future Outlook
HEIDELBERG confirms its forecast for the 2024/2025 financial year, expecting sales to match the previous year's level (€2,395 million) and the adjusted EBITDA margin to remain at the previous year's level (7.2 percent). The company's strong order backlog and continued focus on margins and costs provide a solid foundation for achieving these targets. Furthermore, the implementation of its future plan and efficiency improvements are projected to positively impact profitability, with the adjusted EBITDA margin expected to rise to up to around 8 percent in the 2025/2026 financial year.
About HEIDELBERG Heidelberger Druckmaschinen AG (HEIDELBERG) has been a major provider of solutions for the print media industry for 175 years.
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