Heidelberger Druckmaschinen posted a first-half net loss of 9 million euros on Thursday as cost inflation and project delays squeezed its profitability despite climbing order intake.
Order Intake Rises
Heidelberg reported that first-half order intake edged up to 1.141 billion euros from 1.111 billion euros a year earlier. Second-quarter orders jumped 9.6 percent to 604 million euros.
Net sales for the six-month period reached 913 million euros, down from 985 million euros in the previous year. The machinery manufacturer experienced a stronger second quarter, with revenue climbing 26 percent sequentially to 509 million euros.
Adjusted EBITDA for the first half fell to 33 million euros from 63 million euros. Lower volumes, reduced capacity utilization in commercial printing, and project timing shifts weighed on the bottom line. For the second quarter of the financial year 2026/2027, orders climbed to 604 million euros compared to 551 million euros in the prior-year quarter.
Net sales improved in the second quarter to 509 million euros up from 404 million euros in the first quarter. The adjusted EBITDA margin advanced from 0.2 percent in the first quarter to 6.4 percent in the second quarter.
Cash Flow Strain
Free cash flow worsened to a negative 125 million euros for the six-month period, compared with a negative 61 million euros a year prior. Financial management attributed the cash drain to an internal build-up of net working capital and inventory accumulation to support higher factory output, alongside the acquisition of Manroland Sheetfed group companies.
The integration of Manroland Sheetfed’s service and lifecycle business is proceeding according to plan. It brings in more than 3,000 new customers and contributed to second-quarter results through an acquisition-related accounting gain that helped double second-quarter net income to 24 million euros. The integration aims to reach full completion by the end of the 2028 financial year at the latest, widening the service business and market position through access to more than 3,000 customers.
The demand for our products and services remains high, which is reflected in an increasing order intake thanks to our strong market position.
Jürgen Otto, Chief Executive Officer of HEIDELBERG
Otto also pointed to ongoing market volatility and cost pressures. “The continuing market volatility and high cost pressure as well as temporary expenses from projects have a burdensome effect on our profitability,” he said. He added that the company is meeting its revenue targets within a difficult market.
Dr. David Schmedding, Board Member for Technology and Sales at HEIDELBERG, highlighted specific commercial achievements. A major order from Egypt confirmed the high relevance of Boardmaster systems for high-performance applications. The firm benefits from structural trends in the packaging sector through customer investments by UFlex ASEPTO in an international growth market.
Full-Year Guidance
Management confirmed its full-year outlook for the 2026/2027 financial year, projecting stable revenue compared to the prior year’s 2.293 billion euros. The adjusted EBITDA margin is expected to land between 5.6 percent and 6.6 percent, requiring an acceleration in profitability during the second half of the year.
Company descriptions categorize the enterprise as a broadly positioned high-tech business bundling its activities across Print & Packaging Equipment, Digital Solutions & Lifecycle, and HEIDELBERG Technology. Additional developments include battery storage and defense technology initiatives under HEIDELBERG Advanced Technologies alongside customer interest at the All in Print 2026 trade fair and plant visits at the Shanghai production facility and its Print Media Center.
Heidelberg relies on 9,500 employees across a global network spanning 170 countries. Manufacturing sites are situated in Europe, China, and the USA. In Egypt, packaging producer UFlex Asepto recently brought two high-output Boardmaster systems online for aseptic container production.
Profitability was burdened by volume declines, headwinds in operational execution, project delivery delays, and cost inflation, leading to a mixed overall development.
The company’s next scheduled reporting milestone is the publication of its third-quarter financial figures on February 16, 2027.
