At Heidelberg, key figures for the first nine months of financial year 2024-2025 (April 1 to December 31, 2024) and the third quarter (October 1 to December 31, 2024) were in line with the expected developments communicated by the company. Especially in terms of the key operating results, the third quarter of the current financial year brought significant improvements compared with the first half-year and also with the equivalent quarter of the previous year.

The adjusted EBITDA margin for the third quarter was 9.2% (equivalent quarter of previous year: 5.7%), with high capacity utilization and intensified cost-cutting measures having a particularly positive impact. Sales to date during financial year 2024-2025 have increased from quarter to quarter. The figure of €594 million for the third quarter matched the equivalent quarter of the previous year (€594 million). In the third quarter, incoming orders were up by some 8.3% at €550 million (equivalent quarter of previous year: €508 million). This is much better than the current developments in the mechanical and plant engineering sector as a whole. The biggest contributions were made by the EMEA region (+16%) and the Packaging Solutions segment (+15%). The high order backlog of €903 million paves the way for a very strong final quarter. 

“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” states Jürgen Otto, CEO, 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.” 

Based on strong order levels, the company anticipates a clear increase in sales in the fourth quarter of the current financial year, in particular. Adjusted EBITDA after nine months amounted to €86 million (adjusted figure for equivalent period of previous year: €135 million), and the adjusted EBITDA margin was 5.7% (equivalent period of previous year: 8.0%). The main reasons for this were the low sales volume in the first quarter and the associated high losses. Adjusted EBITDA for the third quarter of the current financial year increased to €55 million, compared with €34 million in the equivalent quarter of the previous year. The adjusted EBITDA margin improved significantly, from 5.7% to 9.2%.

The free cash flow after nine months was, as anticipated, €-97 million (equivalent period of previous year: €-54 million). In the third quarter, it improved significantly compared with the previous year, creeping into positive figures at €4 million (equivalent quarter of previous year: €-26 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,” says Tania von der Goltz, CFO, Heidelberg. “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.”

Packaging segment remains a growth driver

Incoming orders in the Packaging segment increased significantly – by around 11% to €959 million for the first three quarters and by some 15% in the third quarter. In terms of mega trends, the packaging market is first and foremost seeing a growing demand for packaging that is both sustainable and of a high quality. This is where the positioning of Heidelberg as a systems integrator and total solution provider is having a positive impact, helping to further expand the company’s very strong position in the packaging market.

“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,” says David Schmedding, CTO and sales officer, 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.”

In the Print segment, incoming orders for the nine-month period increased by 4.4% to €858 million. 

Growth strategy promises sales potential

To expand its market position, Heidelberg is increasingly tapping into growth potential in its core market – from packaging and digital printing to software and lifecycle business. The first digital presses from the cooperation with Canon are going to customers in Switzerland and Germany. This cooperation will significantly boost future sales generated by digital print solutions, including consumables, software, and service. The company is also keen to further expand its portfolio in the growing market for green technologies. Full-year forecast confirmed, adjusted EBITDA margin to rise to up to around 8% in FY 2025-2026

Factoring in the expectations and prerequisites published and set out in the 2023-2024 Management Report, the company still anticipates that sales for financial year 2024-2025 will match the previous year’s level (previous year: €2,395 million). The adjusted EBITDA margin is also expected to be at the previous year’s level (previous year: 7.2%). The high order backlog and the ongoing focus on margins and costs provide a sound basis for achieving the targets that have been set. The implementation of the plan for the future and the efficiency improvements are having a positive impact on the profitability of Heidelberg, with the adjusted EBITDA margin set to improve further to up to around 8% in the next financial year 2025-2026.