Heidelberger Druckmaschinen Aktiengesellschaft (ETR:HDD) reported a rebound in second-quarter sales and profitability from a weak start to fiscal 2026/2027, but executives said lower equipment volumes, cost pressures and slower project execution weighed on first-half results.
Second-quarter sales rose to €509 million from €404 million in the first quarter, while the adjusted EBITDA margin improved to 6.4% from 0.2%, CEO Jürgen Otto said on the earnings call. The quarterly margin remained 1.8 percentage points below the prior-year level.
Otto said the company’s €839 million order backlog provided greater sales visibility for the second half. Management expects a clear increase in sales compared with the first half, while focusing on converting orders into revenue, integrating acquired businesses and controlling costs and cash.
Profitability and cash flow weaken in first half
First-half sales totaled €913 million, with lower sheetfed printing equipment volumes holding back revenue, CFO Christoph Burkhard said. Adjusted EBITDA fell to €33 million from €63 million a year earlier, and the adjusted EBITDA margin was 3.7%.
Burkhard attributed the decline in earnings chiefly to lower sales volume and capacity utilization. He also cited cost pressure, product mix effects and a slower ramp-up of projects in the technology segment. First-half order intake was €1.14 billion, producing a book-to-bill ratio of 1.2.
Free cash flow was negative €125 million, compared with negative €61 million in the prior-year period. Burkhard said the decline reflected lower earnings, a temporary working capital buildup associated with order execution, strategic investments and acquisitions.
Net investments of €35 million included about €13 million for the acquisition of the manroland sheetfed Group, along with planned capital injections into ONBERG. At the end of September 2026, Heidelberg had net debt of €78 million and had drawn 40% of its €436 million syndicated loan facility, which runs until 2030.
Guidance revision and segment performance
Burkhard reiterated the company’s October 29 revision to its full-year adjusted EBITDA margin guidance of 5.6% to 6.6%. Heidelberg maintained its sales guidance, which he described as stable.
The CFO said the earnings revision primarily reflected continued cost inflation, adverse product and regional mix effects, particularly in the Middle East, and a softer macroeconomic environment that has made customers more cautious about investment.
Performance varied across Heidelberg’s three segments in the first half:
- Print & Packaging Equipment: Order intake was broadly stable at €549 million, while sales declined to €359 million as sheetfed volumes fell, particularly in commercial printing. The adjusted EBITDA margin was 4.4%.
- Digital Solutions & Lifecycle: Order intake rose to €557 million and sales increased to €521 million. The adjusted EBITDA margin fell to 5.2%, affected by manroland functional costs and temporary operational effects.
- HEIDELBERG Technology: Order intake rose to €36 million and sales to €34 million, primarily driven by e-mobility growth. The adjusted EBITDA margin was negative 27.2%, reflecting investment in defense and security and the buildup of those businesses.
Regionally, first-half sales declined 19% in Europe, the Middle East and Africa, while rising 8% in Asia-Pacific and 5% in the Americas, Burkhard said. He attributed weaker EMEA order intake partly to the phase-out of an Italian incentive program and softer demand in the U.K.
Acquisitions and growth projects
Chief Technology and Sales Officer David Schmedding said the manroland acquisition gives Heidelberg access to more than 3,000 customers across 35 markets and adds about 600 employees. The company sees opportunities to expand service, consumables and spare-parts revenue across the combined customer base.
Asked about overlapping service locations, Schmedding said Heidelberg was assessing synergies country by country. Some manroland locations will close, he said, but service staff will be integrated into Heidelberg’s network. He said the company expects to complete integration of the manroland organization within two years.
Schmedding said the Polar transaction protects post-press expertise and supports an installed base of more than 30,000 machines. Heidelberg plans to transfer know-how by fiscal year-end and relocate standard machine assembly to North Macedonia to improve its cost position.
Otto also outlined progress in businesses beyond printing equipment. He said testing in Ukraine, industrialization work and discussions about a planned joint venture with Skyeton continued in Critical Defense. In Energy Systems, Heidelberg expects to assemble its first battery cabinets before year-end.
Schmedding said order momentum should continue over the coming months in both Print & Packaging Equipment and Digital Solutions & Lifecycle. Otto emphasized that Print & Packaging Equipment remains the company’s core business despite its expansion into adjacent markets.
About Heidelberger Druckmaschinen Aktiengesellschaft (ETR:HDD)
Heidelberger Druckmaschinen Aktiengesellschaft, together with its subsidiaries, engages in manufacture, sale, and dealing of printing presses and other print media industry products in Europe, the Middle East, Africa, Asia/Pacific, Eastern Europe, North America, and South America. The company operates through Print Solutions, Packaging Solutions, and Technology Solutions segments. It offers printing machines, including digital, offset, narrow web, screen, and inline-flexo printing, as well as remarketed equipment; and finishing equipment comprising cutting, die-cutting and embossing, folding, inspection, folding carton gluing, hot foil stamping, and shingled folding.
