Heidelberg has reported a solid start to its 2025/26 financial year, with key financial indicators showing year-on-year improvements, driven by a strong order backlog and improved cost efficiency.
Sales for the first quarter rose to €466 million (£395 million), up from €403 million (£349 million) in the same period last year. The company cited continued strength in European and Asian markets, with the latter reflecting Heidelberg’s expanding presence in what it views as a key growth region.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased significantly to €20 million (£17.3 million), compared to a loss of €9 million (£7.8 million) in the same quarter last year. This translated into an adjusted EBITDA margin of 4.4%, reversing a negative margin of –2.3% one year earlier. Heidelberg attributed the improvement to stronger sales, better utilisation of production capacity, and ongoing cost-cutting measures.
Free cash flow remained negative at €–68 million (£–58.8 million) but showed a considerable improvement from the €–103 million (£–89.2 million) reported in the previous year’s first quarter. The net loss after taxes also narrowed, coming in at €–11 million (£–9.52 million) compared to €–42 million (£–36.34 million) a year ago.
Incoming orders totalled €559 million (£483.8 million), down from €701 million (£609 million) in the first quarter of the prior year. Despite this decrease, Heidelberg said the order level remained robust and that its recent participation in the China Print trade fair helped sustain customer interest.
As of April 1, 2025, Heidelberg has restructured its financial reporting into three segments: Print & Packaging Equipment, Digital Solutions & Lifecycle, and Heidelberg Technology. Sales in the Print & Packaging Equipment segment rose by 42% to €211 million (£183 million). Sales in the Digital Solutions & Lifecycle and Heidelberg Technology segments remained stable year-on-year at €241 million (£209 million) and an undisclosed figure, respectively. Adjusted EBITDA improved across all segments.
Packaging printing was identified as a continued growth driver. Heidelberg recently acquired the rights to Polar Mohr technology, aiming to strengthen its position in packaging and label production. Management said this acquisition aligns with the company’s strategy of expanding its portfolio as a systems integrator in the packaging sector.
In a move to diversify its operations, Heidelberg has entered the defence sector through a memorandum of understanding with Vincorian Advanced Systems. The partnership will focus on developing and producing power control and distribution systems for defence applications.
Looking ahead, Heidelberg confirmed its full-year forecast. It expects sales for the 2025/26 financial year to reach approximately €2.35 billion (£2.03 billion), up from €2.28 billion £1.98 billion) in 2024/25. The company also aims to increase its adjusted EBITDA margin to up to 8%, compared to 7.1% the previous year.
CEO Jürgen Otto said the improved cost structure and global positioning provide a solid foundation for continued progress in the current financial year.
