Heidelberg Holds Its Ground in a Difficult Market in FY 2024/25

Heidelberger Druckmaschinen AG held its own in a difficult market environment in financial year 2024/25 and achieved the targets it had set itself.

According to preliminary calculations, the adjusted EBITDA margin remained stable at 7.1%, bringing the financial year to a successful close. The slightly lower sales volume compared to the previous year, rising wage costs and expenses for the drupa trade fair were successfully offset by the cost-cutting and efficiency measures initiated. In the fourth quarter alone, the adjusted EBITDA margin doubled to around 10 per-cent compared to the previous year.

At around €2,280 million, sales were slightly below the previous year’s level (€2,395 million). After a weak first quarter due to a reluctance to buy in the run-up to the drupa trade fair, sales increased quarter by quarter in the financial year and closed with a particularly strong fourth quarter. At around €50 million, free cash flow was once again clearly positive (previous year: €56 million), which did not include any special items in the reporting year, such as from the sale of non-operating assets.

“We were able to achieve our financial year targets in a difficult economic environment and uncertain geopolitical conditions,” said Jürgen Otto, CEO of Heidelberg. “With a clearly positive free cash flow for the second year in a row, we have confirmed our financially solid development. The measures initiated to reduce personnel costs will help us to further strengthen our profitability in the new financial year.” The adjusted EBITDA margin is expected to improve further to around 8% in the next financial year 2025/26.”

Heidelberg closed the past financial year with a high order intake. At more than €600 million, incoming orders in the fourth quarter were up on the previous quarters of the financial year. The basis for this is also the global and diversified positioning of the company, which allows Heidelberg to benefit from the different growth dynamics in the individual regions.

The significant increase in incoming orders in the EMEA region in the fourth quarter deserves special mention, while the Americas region showed a slight improvement at a still subdued level. After several previous quarters of strong growth, the Asia/Pacific region was below the previous year’s level, mainly to the reluctance to invest ahead of the China Print trade fair.

Both segments in the core business achieved an increase in orders thanks to strong development in the Sheetfed product area, with the Packaging Solutions segment accounting for the higher growth.

Preliminary order intake for the year as a whole therefore totaled around €2.43 billion, which was around 6% higher than the previous year’s figure of €2.288 billion. Overall, the improvement can be seen across both segments, with Packaging Solutions accounting for around 52% of order intake for the year as a whole. Compared to the previous year, order intake in this strategically important segment recorded absolute growth of around 7%.

“Our global presence in over 170 countries around the world is paying off, especially in economically uncertain times,” said Dr. David Schmedding, chief technology and sales officer at Heidelberg. “Thanks to the rising order situation, we expect a better start to the new financial year compared to the previous year. The China Print trade fair in May should provide further impetus for orders.

“We are also keeping a close eye on the development of customs duties worldwide. However, there is no comparable manufacturer in the USA in our core business,” Dr. Schmedding added. “In the global market environment, our competitors are likely to be affected by the US tariffs to the same extent, meaning that we will continue to maintain our leading position. Overall, we are therefore confident about the new financial year.”