Rieter (RIEN) H1 2025 earnings summary

Executive summary

• Order intake declined 12% year-over-year to CHF 355.4 million, and sales fell 20% to CHF 336.2 million in H1 2025 due to macroeconomic and geopolitical turbulence, including U.S. trade tariffs and global trade disputes.

• Operating EBIT (excluding restructuring and transaction costs) was CHF -2.7 million, near break-even, supported by cost discipline and additional measures.

• Strategic growth in After Sales led to a 25% order intake increase, supporting profitability despite market headwinds.

• Net loss widened to CHF 20.0 million, mainly due to lower sales volume and negative free cash flow of CHF 36.7 million.

• The Barmag acquisition remains on track, with completion expected by year-end 2025.

Financial highlights

• Sales declined by 20% year-over-year in H1 2025, with the largest drop in the machines and systems division.

• Operating EBIT was -CHF 2.7 million, and reported EBIT was -17.3 million due to CHF 14.6 million in restructuring and acquisition costs.

• Free cash flow was negative at CHF 36.7 million, mainly due to negative operating results and high inventories from postponed orders.

• Order backlog stood at CHF 510 million, unchanged from end-2024.

• Gross profit dropped to CHF 83.1 million (1H24: CHF 122.2 million); EBITDA fell to CHF 10.2 million from CHF 36.8 million.

Outlook and guidance

• Full-year 2025 sales guidance lowered to CHF 750–800 million (previously CHF 860 million), excluding Barmag.

• Operating EBIT margin (excluding restructuring and Barmag costs) expected at the lower end of 0–4%.

• Market recovery is expected to gradually improve order intake, with a stronger second half anticipated, contingent on market conditions.