Rieter (RIEN) investor relations material

Executive summary

• Completed the largest acquisition in company history with Barmag, creating the Man-Made Fiber Division and strengthening the market position in Asia and man-made fibers.

• Order intake rose 56% year-over-year to CHF 554.1 million and sales increased 72% to CHF 576.7 million, mainly due to the Barmag acquisition.

• Integration is progressing well, with initial cost savings and a clear path to annual synergies of at least CHF 20 million by 2028.

• Strategic partnership with Recycling Powerhouse launched to drive textile recycling and sustainability.

• Early signs of market recovery observed in India and the Components & Technology Division, with increased demand for consumables and spare parts.

Financial highlights

• Operating EBIT was CHF -6.3 million, below break-even due to capacity utilization, fixed costs, and integration expenses.

• Net result for the period was CHF -54.9 million, reflecting low sales, higher interest, and acquisition-related costs.

• Free cash flow was CHF -96.3 million, impacted by net loss and increased working capital.

• Order backlog increased to CHF 760 million, providing strong visibility for H2.

• Gross profit improved to CHF 96.0 million from CHF 83.0 million year-over-year.

Outlook and guidance

• Full-year 2026 sales expected in the CHF 1.3–1.5 billion range, with a positive operating EBIT margin of 0–3%.

• Three-quarters of H2 revenue is already covered by the order backlog, supporting high confidence in guidance.

• Growth to be driven by Asia Pacific, especially India and China.

• Free cash flow in Man-Made Fiber Division expected to turn positive in H2 as working capital reverses.

• Financing for further development and integration is fully secured.