Rieter Revises 2025 Outlook Amid Market Uncertainty

In the first half of 2025, Rieter recorded an order intake of CHF 355.4 million, a 12% decline compared to the same period last year, which stood at CHF 403.4 million. The company attributes this to delayed investment decisions stemming from ongoing global trade disputes (notably US tariffs) and geopolitical uncertainties.

As already communicated in March 2025, revenue for the first half totaled CHF 336.2 million, reflecting a 20% decline year-on-year (H1 2024: CHF 421.0 million), yet broadly aligned with expectations due to a lower order backlog.

Division-Wise Order Intake & Sales Performance

• Machines & Systems: Order intake fell to CHF 166.9 million (H1 2024: CHF 211.5 million), mainly due to uncertainties surrounding tariffs and broader market instability.
• Components: Order intake decreased to CHF 95.7 million (H1 2024: CHF 117.6 million), impacted by low demand for components in new machinery due to cautious investments.
• After Sales: Order intake rose significantly by 25% to CHF 92.8 million (H1 2024: CHF 74.3 million), backed by increased service activity in Central Asia, China, and network expansion.

On the sales front:

• Machines & Systems posted CHF 144.0 million (–28%)
• Components posted CHF 113.9 million (–10%)
• After Sales posted CHF 78.3 million (–18%)

The order backlog at June 30, 2025, was CHF 510 million (H1 2024: CHF 640 million).

EBIT, Net Loss & Cost Management

The first half saw non-recurring effects from the planned Barmag acquisition and restructuring, totaling CHF 14.6 million. Operating EBIT before these costs was CHF –2.7 million. The net loss stood at CHF –20.0 million, mainly due to reduced sales and increased inventories amid weak customer retrievals.

However, overhead costs were cut to CHF 104.9 million, down from CHF 119.8 million a year prior, showcasing Rieter’s continued cost discipline.

Free cash flow for H1 2025 was CHF –36.7 million (H1 2024: CHF –1.1 million), due to net losses and higher inventories.

Extraordinary General Meeting & Capital Measures

An Extraordinary General Meeting is scheduled for September 18, 2025, to vote on planned capital increases (via rights issue and private placement) for the Barmag Division acquisition, and the reintroduction of a capital band. Major shareholders Peter Spuhler (33%) and Martin Haefner (10%) have committed to participate.

Also on the agenda: a capital reduction via nominal value adjustment, to be allocated to capital reserves without impacting liquidity. The Barmag deal is expected to close by year-end 2025, subject to approvals.

Adjusted 2025 Outlook

Given slower-than-expected market recovery, Rieter now expects full-year 2025 sales (excluding Barmag) between CHF 750–800 million, down from CHF 860 million. EBIT margin (excluding restructuring/acquisition costs) is forecasted at the lower end of the 0–4% range.