Rieter (RIEN) Q3 2025 TU earnings summary

Executive summary

• Order intake for the first nine months of 2025 was CHF 559.3 million, down 11% year-over-year, but up 11% excluding a large prior-year Chinese order, with a strong Q3 performance.

• Sales reached CHF 457.7 million, a 22% decline compared to the prior year, reflecting delayed customer investments and weak demand, especially in the Machines & Systems division.

• The Barmag acquisition is progressing as planned, with financing secured through a record equity raise and CHF 750 million in syndicated credit facilities; regulatory approvals are expected by year-end.

• Significant cost reduction and performance improvement measures have been implemented, including organizational simplification, supply chain optimization, and overhead cost reductions of more than CHF 100 million since 2023.

• Strategic focus remains on automation, digitization, supply chain excellence, and agile structures to drive performance improvements.

Financial highlights

• Order intake: CHF 559.3 million for the first nine months of 2025, 11% lower year-over-year; adjusted for major 2024 orders, intake increased 11%.

• Sales: CHF 457.7 million, down 22% year-over-year; Machines & Systems sales fell by CHF 76.5 million, Components by CHF 27.7 million, After-sales by CHF 19.8 million.

• Book-to-bill ratio for the first nine months of 2025 was above 1x, indicating orders exceeded sales.

• Order backlog as of September 30, 2025, was CHF 590 million, down from CHF 690 million a year earlier.

• Negative FX translation impact on sales was CHF 11.6 million.

Outlook and guidance

• Full-year 2025 sales expected at around CHF 700 million, revised down from CHF 750–800 million, excluding Barmag.

• Operating EBIT margin forecast at the lower end of 0–4%, excluding restructuring and acquisition costs.

• Transaction and restructuring costs impacting EBIT by CHF 15 million and net financial expenses, including Barmag, around CHF 20 million; net result expected to be negative.

• Conservative approach for 2026, with continued cost measures and performance programs.