Heidelberger Druckmaschinen (HDD) Q1 2025 earnings summary

Executive summary

• New management team introduced, emphasizing experience in operational turnaround, cost management, and financial strength.

• Q1 2024/25 saw record incoming orders of €701 million, the highest since 2016, driven by the drupa trade fair, but with lower sales and negative adjusted EBITDA due to seasonality and event costs.

• Management remains confident in achieving full-year targets, supported by a robust order backlog and positive trends from drupa.

• Strategic focus on cost control, margin management, and leveraging a strong order backlog for future growth.

Financial highlights

• Orders received in Q1 reached €701 million, up 19% year-over-year; order backlog at €923 million.

• Net sales declined 26% year-over-year to €403 million, reflecting seasonality and pre-drupa order delays.

• Adjusted EBITDA margin was -2.3%, impacted by €10 million drupa expenses.

• Free cash flow at -€103 million, mainly due to inventory buildup and negative EBITDA.

• Net income was -€41.9 million, with EPS at -€0.13.

Outlook and guidance

• Full-year sales guidance of around €2.4 billion, largely backed by firm orders.

• Sequential improvement expected in Q2, with stronger performance in the second half of the year.

• Adjusted EBITDA margin projected to improve to 7.2% for the full year.

• Positive free cash flow expected for the full year.

• Large order backlog and ongoing cost controls support achievement of targets.