Maschinenfabrik Berthold Hermle (MBH3) H2 2024 earnings summary

Executive summary

• 2024 results weakened as cautious demand intensified in H2; international markets, automation solutions and service revenue helped cushion the downturn.

• Strong finances supported continued investment despite lower orders, revenue and earnings; the 2025 outlook calls for a significant contraction.

Financial highlights

• 2024 revenue fell 8.3% to €487.9m from €532.3m; overseas revenue declined 6.2% to €308.5m and domestic revenue fell 11.8% to €179.4m.

• EBIT decreased to €85.3m from €115.8m; profit before tax was €89.0m versus €118.4m, and net income was €65.9m versus €87.6m.

• Orders received declined 7.8% to €456.2m; year-end backlog was €98.7m versus €130.5m.

Outlook and guidance

• 2025 revenue is expected to decline from just under 10% to ~25%, with earnings down disproportionately by 40% to 90%.

• Medium-term demand is expected to remain sustained for high-performance machine tools and automated systems; the portfolio transition to GEN2 is underway.

• Flexible working-time accounts are being reduced and short-time work implemented in H1 2025 amid weak conditions.