Heidelberger Druckmaschinen (HDD) Q4 2026 earnings summary

Executive summary

• Achieved strong progress on strategic initiatives, cost optimization, and digital transformation, improving structural cost indicators and results before and after taxes for FY 2025/2026.

• Expanded digital business through partnerships with Canon, Ricoh, and Masterwork, and completed integration of Polar; broadened collaboration scope and enhanced portfolio.

• Built up security and defense business, including joint ventures in anti-drone defense and partnerships with VINCORION, reducing reliance on core print operations.

• Core printing and packaging business remains stable, with global positioning supporting robust development and market leadership.

• Efficiency initiatives, such as relocating production and optimizing personnel costs, have strengthened competitiveness.

Financial highlights

• Net sales for FY 2025/2026 rose 1% year-over-year to €2,293 million, slightly above prior year but 2.4% below guidance due to FX headwinds; sales adjusted for exchange rates reached €2,362 million.

• Adjusted EBITDA margin declined to 6.6% from 7.1%, impacted by negative currency effects, customs issues, and investments in new activities.

• Net result after taxes improved to €15 million, tripling year-over-year, driven by a €6 million increase in EBIT and a €4 million better financial result.

• Equity ratio improved to 27.2%, with equity rising to €568 million; headcount reduced by 6%, yielding €23 million in personnel cost savings.

• Free cash flow was negative €19 million, impacted by lower prepayments and restructuring.

Outlook and guidance

• FY 2026/2027 guidance anticipates stable net sales at €2,293 million and a noticeable improvement in adjusted EBITDA margin, supported by efficiency and digitalization.

• Print & Packaging Equipment: sales to decline, but margins to increase significantly due to efficiency measures.

• Digital Solutions & Lifecycle: slight sales growth, with a temporary margin dip due to mix effects and digital ramp-up.

• Technology segment projects significant sales and margin increases, driven by security, defense, and e-mobility.

• Free cash flow expected to be negative in 2026/2027 due to investments in defense, turning positive in subsequent years.