Heidelberger Druckmaschinen (HDD) Q4 2024 earnings summary

Executive summary

• Achieved FY 2023/24 guidance despite economic headwinds, high interest rates, and geopolitical tensions, maintaining net sales and adjusted EBITDA at prior year levels.

• Value Creation Program contributed over €100m, supporting profitability and strong free cash flow.

• Strategic advances in digital and packaging segments, including successful Drupa 2024 innovations and new partnerships.

• Free cash flow reached €56 million, highest in a decade after adjusting for prior non-recurring items.

• CEO Ludwin Monz to step down, succeeded by Jürgen Otto as of July 1.

Financial highlights

• Net sales: €2,395m (reported), €2,449m (constant FX), stable year-over-year.

• Adjusted EBITDA margin: 7.2%, unchanged from prior year.

• Net income: €39m, down from €91m prior year due to non-recurring items and higher pension expenses.

• Free cash flow: €56m, highest in over 10 years excluding prior year’s non-recurring items.

• Earnings per share: €0.13 (prior year: €0.30).

Outlook and guidance

• FY 2024/25 net sales and adjusted EBITDA margin expected at prior year levels, with H2 stronger than H1 due to Drupa-driven order intake.

• Q1 FY 2024/25 sales and EBITDA margin expected to be significantly lower, with recovery in H2.

• Order intake expected to rise to around €650 million in Q1 FY 2024/25, up 10% year-over-year.

• Value Creation Program to continue driving margin stability and cash flow.

• CapEx expected to remain stable at around €65 million.