Rieter Reaches Strategic Repositioning Milestone After Barmag Acquisition

Rieter announced financial results for 2025 and confirmed the completion of its acquisition of Barmag on February 2, 2026. The company reported order intake of CHF 703.4 million, sales of CHF 685.1 million, and a positive operating EBIT of CHF 2.5 million.

Rieter stated that the acquisition of Barmag was finalized on February 2, 2026, marking a key step in its strategic repositioning. Barmag will operate within the group as the “Man-Made Fiber” Division. The transaction expands Rieter’s activities beyond short-staple fiber machinery and positions the company across the value chain for natural and man-made fibers. The acquisition also strengthens Rieter’s focus on automation and digitization as a complete systems supplier.

The company indicated that this transaction aligns with its long-term growth strategy and follows previous portfolio expansions. Since acquiring automatic winding technology in the 2021 financial year, Rieter has covered the entire production process from fiber preparation to all four end-spinning technologies. With the addition of Barmag, Rieter is extending its reach into the man-made fiber market and reducing exposure to cyclical fluctuations in individual segments. The Man-Made Fiber Division is expected to support the group’s long-term position, particularly in Asia.

Order intake
Order intake remained stable on a currency-adjusted basis at CHF 703.4 million in 2025 (2024: CHF 725.5 million). Market recovery was affected by ongoing global trade conflict, including punitive US tariffs, and geopolitical uncertainty.

The Machines & Systems Division recorded order intake of CHF 346.3 million (2024: CHF 364.2 million). Demand increased, although order completion was influenced by customs tariffs and geopolitical and economic conditions.
The Components Division generated CHF 193.5 million in order intake (2024: CHF 206.6 million), reflecting lower demand for components for new machinery.
The After Sales Division increased order intake by 6% to CHF 163.6 million (2024: CHF 154.7 million), supported by higher activity in Central Asia and China and the expansion of service and repair networks.

Sales
Group sales for 2025 amounted to CHF 685.1 million (2024: CHF 859.1 million), representing a decline of 20% year on year.

Sales in the Machines & Systems Division were CHF 329.1 million (2024: CHF 424.9 million).
The Components Division posted sales of CHF 200.8 million (2024: CHF 247.6 million).
The After Sales Division achieved sales of CHF 155.2 million (2024: CHF 186.6 million).

Order backlog
At the end of 2025, order backlog stood at around CHF 510 million (December 31, 2024: CHF 530 million).

Operating EBIT, net profit, free cash flow
Despite lower sales, Rieter reported a positive operating EBIT of CHF 2.5 million before restructuring and transaction costs, supported by cost reduction measures. Due to restructuring expenses and transaction costs related to the Barmag acquisition totaling CHF 54.2 million, the group recorded a net loss of CHF 63.4 million for 2025 (2024: net profit of CHF 10.4 million).

Free cash flow was CHF -40.6 million (2024: CHF 14.1 million). Following the capital increase completed to finance the acquisition, net liquidity reached CHF 184.3 million (2024: CHF -230.3 million).
The equity ratio increased to 53.3% as of December 31, 2025 (2024: 33.7%), mainly due to the capital increase carried out in October 2025.

Dividends
The Board of Directors proposed that no dividend be distributed in view of the negative group result. The company maintained its policy of distributing at least 40% of net profit.

New medium-term targets
Rieter plans a soft integration of Barmag and confirmed preliminary synergy expectations of at least CHF 20 million. An update on synergy realization will be provided with the results for the first half of 2026.

The company outlined three market scenarios following the completion of synergies:

• Low scenario: Sales of around CHF 1.4 billion with an operating EBIT margin of 2 to 5%.
• Medium scenario: Sales of around CHF 1.8 billion with an operating EBIT margin of 5 to 8%.
• High scenario: Sales of up to CHF 2.2 billion with an operating EBIT margin of 8 to 11%.

Outlook for 2026
For 2026, described as a transition year, Rieter expects sales between CHF 1.3 billion and CHF 1.5 billion. The outlook reflects the integration of Barmag and restructuring measures announced in 2025. A positive operating EBIT margin of 0 to 3% is projected, and financing for the development of the combined company is reported as secured.