Rieter (RIEN) H2 2024 earnings summary

Executive summary

• Order intake rose 34% year-over-year to CHF 725.5 million, marking four consecutive quarters of growth, driven by a rebound in Machines & Systems.

• Sales declined 39% to CHF 859.1 million, mainly due to lower volumes in Machines & Systems and a slow market recovery.

• EBIT reached CHF 28 million (3.3% margin), supported by cost management and restructuring, but dropped 73% year-over-year; net profit fell 86% to CHF 10.4 million.

• Equity ratio improved to 33.7%, moving toward the >35% target, but remained below at 28.8% by year-end.

• Market recovery is led by Asia, but conditions remain challenging with low margins for spinners.

Financial highlights

• EBIT margin was 3.3%, including 0.6% from restructuring costs; before restructuring, margin was 3.9%.

• Free cash flow was CHF 14 million, down from CHF 118.7 million in 2023, despite significant restructuring outflows.

• Dividend of CHF 2 per share proposed, representing 85.8% payout of net profit and a 33% reduction.

• Net debt increased to CHF 230.3 million due to lease liabilities and M&A effects.

• Order backlog at year-end was CHF 530 million, aligning with long-term averages and covering about half of a low market scenario sales level.

Outlook and guidance

• 2025 expected to have a weak first half and stronger second half, with full-year sales at 2024 levels.

• EBIT margin guidance for 2025 is 0-4%, reflecting ongoing market uncertainty.

• Positive order intake trends in early 2025, especially in after-sales and components.