Heidelberger Druckmaschinen Aktiengesellschaft ETR: HDD reported stable preliminary fiscal 2025/2026 sales and a positive net financial position, while management said currency headwinds, softer investment demand and regional volatility weighed on profitability in a challenging year.
Chief Executive Officer Jürgen Otto said the year was marked by “setting the right strategic direction” through a series of projects and measures, some of which have already been completed. He said Heidelberg continued to invest in growth areas, particularly security and defense, despite geopolitical tensions including the Iran conflict.
The company reported order intake of EUR 2.2 billion. Otto said that, adjusted for EUR 71 million of currency effects, order intake would have been around EUR 2.3 billion, reflecting a stable underlying demand environment. Net sales totaled EUR 2.3 billion and were stable year over year despite EUR 69 million of foreign exchange headwinds.
Adjusted EBITDA margin came in at 6.6%. Otto said profitability was pressured mainly by Print & Packaging Equipment, where softer demand and pricing, delayed investment decisions and upfront expenses in technology growth areas weighed on results. Those effects were partially offset by cost discipline, including a EUR 23 million reduction in personnel expenses excluding restructuring and a roughly 3% decline in headcount, from 9,309 to 9,065 employees.
Segment Performance Reflects Currency and Mix Pressure
Volker Herdin, Head of Finance, said Heidelberg’s sales mix remained balanced, with approximately 52% of net sales from Print & Packaging Equipment, 46% from Digital Solutions & Lifecycle and the remainder from Heidelberg Technology.
In Print & Packaging Equipment, order intake fell 11% to EUR 1.13 billion, reflecting the absence of prior-year investment tailwinds and about EUR 41 million of negative currency effects. Net sales rose 2% to EUR 1.18 billion, supported by sheet-fed and wide web demand, despite EUR 39 million in currency headwinds. Adjusted EBITDA declined to EUR 93 million from EUR 107 million, and the adjusted EBITDA margin fell 130 basis points to 7.9%. Herdin attributed the decline mainly to product mix, utilization and currency effects rather than a deterioration in competitiveness.
Digital Solutions & Lifecycle recorded order intake of EUR 1.05 billion, down about 4% from the prior year. Herdin said currency alone accounted for roughly EUR 30 million of the decline. Net sales were roughly stable at EUR 1.05 billion, concentrated in service and consumables, with narrow web helping stabilize the top line. The segment’s adjusted EBITDA margin remained stable at 6.8%, reflecting a reduced cost base and disciplined cost management.
In Heidelberg Technology, order intake and net sales showed slight improvement. Herdin said e-mobility and industrial business remained stable, while the company improved its cost position in e-mobility. However, ramp-up costs and current scale in security and defense offset that improvement, leaving the segment’s adjusted EBITDA margin negative.
Regional Trends Differed Across Markets
Herdin said order intake in EMEA fell 11% to EUR 1.1 billion, reflecting the absence of the prior year’s drupa effect and challenging economic conditions. Net sales in the region rose 3% to EUR 1.17 billion. He highlighted Italy’s contribution, supported by a government sub-program.
Across Greater China and Asia Pacific, order intake decreased 6% to EUR 600 million. Herdin said Greater China improved in the second half, but the region faced EUR 40 million of currency headwinds. Net sales of EUR 583 million were 8% lower, though he said performance was largely stable on a currency-adjusted basis.
In the Americas, order intake of EUR 535 million was 2% below the prior year, affected by U.S. trade-related uncertainty and EUR 30 million of negative currency effects. Herdin said order trends improved beginning in the third quarter. Net sales approached the prior-year level, driven by demand for Boardmaster and sheet-fed products, which more than offset EUR 32 million of currency effects.
Cash Flow Weakens, Balance Sheet Remains Positive
Adjusted EBITDA for fiscal 2025/2026 was EUR 151 million. Herdin said operating performance was affected by the Middle East conflict, which led to weaker investment demand, supply constraints, order delays, higher energy prices and tariff effects. Currency reduced EBITDA by around EUR 20 million, and the product mix was less favorable than in the prior year. Efficiency initiatives, lower operating costs and the absence of drupa trade fair costs provided offsets, though expenses related to Print China weighed on the period.
Operating cash flow declined to EUR 36 million from EUR 113 million, which Herdin attributed to lower customer down payments and a reduced EBITDA contribution after 12 months. Net working capital effects declined by EUR 48 million, primarily because lower down payments more than offset reduced inventories. Restructuring-related payouts rose to EUR 26 million as Heidelberg implemented its “Zukunftsplan.”
Free cash flow was negative EUR 19 million, compared with positive EUR 51 million in the prior year. Cash flow from investments was negative EUR 76 million. Herdin said capital expenditures were below the prior year despite the EUR 11 million POLAR Group acquisition, while divestment income of about EUR 22 million was lower than the prior year, which benefited from strong sales of demonstration machines around drupa.
Heidelberg ended the year with a positive net financial position of EUR 39 million. Equity rose to EUR 568 million, and the equity ratio improved by 210 basis points to 27.2%. Pension liabilities stood at EUR 605 million, reflecting an increase in the German pension discount rate to 4.2%. The company also upsized its syndicated credit facility to EUR 436 million and extended its maturity to 2030. Herdin said the facility was drawn at about 15% at the end of March 2026.
Strategic Measures Include Cost Cuts, Partnerships and New Growth Areas
Otto said Heidelberg made progress on strategic and cost measures during the year. Under the Zukunftsplan, the company concluded more than 550 exit agreements, mainly in Germany, to structurally adjust its personnel cost base. It also relocated CX104 activities in China and launched a low-cost country footprint in North Macedonia.
Management highlighted several strategic initiatives, including:
- Expansion of digital print through partnerships with Canon and Ricoh;
- A strategic partnership agreement with Masterwork that expands collaboration beyond prior sales cooperation;
- Completion of POLAR integration;
- Transformation of Amperfied from a hardware-focused business into an integrated charging technology solutions provider;
- Establishment of security and defense as an additional growth pillar.
During the question-and-answer session, Warburg Research analyst Stefan Augustin asked about the fourth-quarter profitability shortfall. David Schmedding, responding during the call, cited a sudden weakening in investment demand tied to the Middle East conflict, as well as delays, currency effects and tariff-related uncertainty in the Americas. Otto added that weaker sales in China hurt mix because machines there carry better profitability, and said year-end effects including warranty claims and other items amounted to EUR 3 million to EUR 4 million.
In response to a question from Kepler Cheuvreux analyst Sven Sauer about the Iran war’s impact despite stronger fourth-quarter orders, management said regional developments differed globally. Strong momentum from China in the final months helped offset shortfalls in other regions, especially EMEA, where Iran and Middle East business are included.
Otto said Heidelberg will provide its strategic outlook and financial guidance at a press conference on June 10, 2026.
About Heidelberger Druckmaschinen Aktiengesellschaft ETR: HDD
Heidelberger Druckmaschinen Aktiengesellschaft, together with its subsidiaries, engages in manufacture, sale, and dealing of printing presses and other print media industry products in Europe, the Middle East, Africa, Asia/Pacific, Eastern Europe, North America, and South America. The company operates through Print Solutions, Packaging Solutions, and Technology Solutions segments. It offers printing machines, including digital, offset, narrow web, screen, and inline-flexo printing, as well as remarketed equipment; and finishing equipment comprising cutting, die-cutting and embossing, folding, inspection, folding carton gluing, hot foil stamping, and shingled folding.
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