Rieter (RIEN) H2 2025 earnings summary

Executive summary

• Sales declined 20% year-over-year to CHF 685.1 million, with order intake down 3% to CHF 703.4 million, reflecting cyclical weakness and customer delays.

• Operating EBIT dropped to CHF 2.5 million from CHF 33.9 million in 2024, impacted by lower volumes, pricing pressure, and restructuring costs.

• Net result swung to a loss of CHF 63.4 million, compared to a profit of CHF 10.4 million in 2024, affected by restructuring, transaction, and impairment effects.

• The acquisition of Barmag expanded technology and market reach, with leadership changes including Georg Stausberg joining the executive committee.

• China delivered 32% sales growth, while Turkey and Africa saw steep declines; workforce reduced by 12% to 4,220 employees.

Financial highlights

• Sales: CHF 685.1 million, down 20% year-over-year; order intake: CHF 703.4 million, down 3%.

• Operating EBIT: CHF 2.5 million, compared to CHF 33.9 million last year.

• Net result: -CHF 63.4 million, impacted by CHF 54.2 million in restructuring, transaction, and impairment effects.

• Free cash flow: -CHF 40.6 million, versus +CHF 14.1 million in 2024.

• Net liquidity: CHF 184.3 million at year-end, supported by a capital increase; shareholders' equity rose 90% to CHF 780.6 million.

Outlook and guidance

• 2026 is expected to be a transition year, with sales guidance of CHF 1.3–1.5 billion and operating EBIT margin of 0–3%, reflecting partial Barmag integration and ongoing restructuring.

• Midterm scenarios: sales of CHF 1.4–2.2 billion and EBIT margins of 2–11%, depending on market conditions.

• Synergy target of CHF 20 million from Barmag acquisition expected to be fully realized by 2027.

• Capital allocation will focus on deleveraging in the near term, with a long-term ambition for a net cash position.

• No dividend proposed for the year.