Heidelberger Druckmaschinen (HDD) Q2 2025 earnings summary

Executive summary

• Orders received grew 7.5% year-over-year to €1,273 million, outperforming the sector's decline, with strong growth in Asia-Pacific and at the drupa trade fair, offsetting weaker trends elsewhere.

• Net sales for the first half were €915 million, down 16.2% year-over-year, reflecting expected seasonality and pre-drupa purchasing restraint, but Q2 showed a 27% sequential improvement.

• Adjusted EBITDA margin for H1 was 3.4% (prior year: 9.2%), with Q2 margin improving to 7.8% from Q1's -2.3%, supported by cost discipline.

• Net income for H1 was -€34.8 million (prior year: €33 million); EPS was -€0.11 (prior year: €0.11).

• Strong order backlog and increased production output position the company for significant sales and profitability improvements in the second half.

Financial highlights

• Orders received: €1,273 million (+7.5% year-over-year); book-to-bill ratio at 1.08.

• Net sales: €915 million for H1 (-16.2% year-over-year); Q2 net sales €512 million, up 27% quarter-over-quarter but down 6.4% year-over-year.

• Adjusted EBITDA: €31 million for H1 (3.4% margin), down from €101 million (9.2%) last year.

• Free cash flow for H1 was -€102 million, impacted by seasonality, but turned positive in Q2.

• Equity ratio stood at 21.6% as of September 30, 2024, with equity at €471 million; net financial position was -€39 million.

Outlook and guidance

• Full-year 2024/2025 sales expected to be in line with prior year (€2,395 million), with adjusted EBITDA margin also similar to last year (7.2%).

• H2 expected to see strong sales and margin recovery, driven by robust order backlog and increased production output.

• Free cash flow projected to turn positive by year-end.