Heidelberger Druckmaschinen AG (Heidelberg) has reported a notable increase in profitability for the third quarter of the 2024/2025 financial year, with an adjusted EBITDA margin reaching 9.2%, up from 5.7% in the same period last year. The company attributes this improvement to high capacity utilization and cost-cutting measures.
Sales for the quarter remained stable at €594 million, while incoming orders rose by 8.3% year-on-year to €550 million, driven by strong performance in the EMEA region and the Packaging Solutions segment. Heidelberg’s order backlog now stands at €903 million, indicating a strong final quarter ahead.
CEO Jürgen Otto expressed confidence in the company’s performance: “We have succeeded in continuously improving our sales and operating result quarter by quarter in a difficult economic environment. Thanks to our high order backlog, we can confirm that we will achieve our targets for the year.”
For the first nine months, adjusted EBITDA stood at €86 million, with a margin of 5.7%. However, net provisions of €29 million for labor cost reductions impacted EBITDA, bringing net results after taxes for Q3 to €-7 million. Free cash flow for the quarter improved to €4 million, compared to €-26 million last year. CFO Tania von der Goltz highlighted the importance of inventory management, stating, “Our successful management of net working capital played a key role in achieving a positive free cash flow despite high inventories due to the order situation.”
Packaging as a Key Growth Driver
The packaging segment continues to fuel growth, with incoming orders increasing by 15% in Q3 and 11% over the first three quarters, reflecting the rising demand for sustainable, high-quality packaging. Heidelberg’s focus on automation, robotics, and software integration is strengthening its market position.
“Packaging printing is the current growth sector for the printing industry, including Heidelberg,” said David Schmedding, Chief Technology & Sales Officer. “In particular, the Boardmaster for high-volume packaging printing meets customer needs.”
Growth Strategy and Future Outlook
Heidelberg is expanding its presence in digital printing, software, and lifecycle services. Its partnership with Canon is expected to boost digital print sales, while investments in green technologies, including hydrogen electrolyzers and EV charging infrastructure, align with long-term growth plans. The company estimates a sales potential exceeding €300 million in the medium term.
Despite economic challenges, Heidelberg has reaffirmed its full-year forecast, expecting sales to remain at previous-year levels (€2,395 million) and an adjusted EBITDA margin of around 7.2%. Looking ahead, the company aims to improve profitability further, targeting an adjusted EBITDA margin of up to 8% in 2025/2026.