Heidelberg, a major player in printing technologies, is going through a period of strategic transformation, while building on solid foundations to achieve its financial targets. Here's a look at the key issues shaping the company's immediate future.
Order book and seasonality: a tense second half
Heidelberg has an order backlog of 953 million euros at the end of the first half of the 2024/2025 financial year. This momentum, boosted by drupa-related orders, should enable the company to fully optimize its production capacities in the third and fourth quarters. This situation also reflects the sector's marked seasonality: first-half sales, totalling 915 million euros, were lower than last year (1.092 billion euros), partly due to a slowdown in purchasing ahead of drupa. However, sales prospects for the second half of the year, combined with rigorous cost control, point to a marked improvement.
The packaging sector: a strategic growth driver
With orders in the Packaging Solutions segment up 9.7% to ?675 million, Heidelberg continues to capitalize on underlying market trends. The growing demand for sustainable, high-end packaging is driving the company to position itself as a systems integrator capable of meeting the specific needs of this sector.
The Asian market, particularly China, represents a key opportunity. Thanks to local infrastructures and a strong presence, Heidelberg anticipates sustained growth there. This strategic positioning in the packaging market will enable the company to strengthen its resilience to the ups and downs of other segments.
Financial management and profitability under control
Ongoing efforts to optimize costs are bearing fruit. First-half adjusted EBITDA, although down to 3.4% (versus 9.2% the previous year), is showing signs of recovery. Margins should improve as volumes increase in the second half. In addition, free cash flow, down from -102 million euros in the first quarter to 2 million in the second, illustrates the positive impact of this financial discipline. According to CFO Tania von der Goltz, this approach will remain essential to achieving our targets.
A vision for 2025 and beyond
Heidelberg continues to capitalize on its international network, generating over 80% of its business outside Germany. Asia-Pacific is proving to be a priority region, with orders up 10% in the first half.
The company is maintaining its forecasts for the 2024/2025 financial year, targeting stable sales of around ?2.395 billion and an EBITDA margin similar to the previous year (7.2%). Beyond this year, Heidelberg will focus on the packaging, industrial and service segments, while continuing its cost-cutting efforts.
