Heidelberg's robust start affirms the projected full-year earnings for fiscal year 2025/26.
Heidelberg, Germany - Heidelberger Druckmaschinen AG (HEIDELBERG) has reported a strong start to its 2025/26 financial year, with the company seeing significant improvements in its financial performance.
In the first quarter of the financial year, HEIDELBERG's incoming orders totalled € 559 million, a decrease from the previous year's € 701 million. However, the company's net result after taxes improved significantly, with a deficit of € -11 million compared to the previous year's € -42 million. The adjusted operating result (EBITDA) also saw a substantial improvement, reaching € 20 million compared to € -9 million in the corresponding quarter of the previous year.
The company's cost-cutting measures have had a positive impact on profitability in the current financial year, with the adjusted EBITDA margin rising to 4.4 percent after three months, up from -2.3 percent in the equivalent quarter of the previous year. Free cash flow after three months also improved, with a deficit of € -68 million compared to the previous year's € -103 million.
HEIDELBERG's sales in the Print & Packaging Equipment segment saw a significant increase of 42% to € 211 million in the first quarter, while sales in the Digital Solutions & Lifecycle segment remained at the previous year's level, totalling € 241 million. The company's third segment, HEIDELBERG Technology, also saw improvements in its adjusted EBITDA.
In addition to its traditional printing technology focus, HEIDELBERG has embarked on a strategic pivot to enter and expand in the defense sector. The company announced a strategic partnership with VINCORION Advanced Systems GmbH to develop, industrialize, and manufacture power control and distribution systems for military applications, such as power units and emergency generators for Eurofighter combat jets.
This move is part of HEIDELBERG's broader strategic pivot to become a diversified industrial company, leveraging its core competencies in high-precision engineering, automation, and vertical manufacturing. The partnership is intended to enhance technological sovereignty, strengthen security of supply, and safeguard European domestic value chains in defense technology.
HEIDELBERG CEO Jürgen Otto expressed confidence about the prospects for the year as a whole, stating that the defense sector entry is expected to generate at least €100 million in revenue over the next three years and significantly improve the company’s growth potential and resilience amid geopolitical and industrial shifts. The company aims to establish itself as a reliable partner for defense products and progressively expand its role in this sector, aligning with Europe’s broader push for strategic autonomy in security technologies.
Business in Europe and Asia showed significant growth during the first quarter of 2025/26, with HEIDELBERG's successful participation in the China Print trade show contributing to the solid basis for positive business development. Further information about the company, including image material, can be found in the Investor Relations portal and Press Lounge of Heidelberger Druckmaschinen AG at www.heidelberg.com.
[1] Heidelberger Druckmaschinen AG. (2025). Heidelberg and VINCORION to collaborate on power electronics for defense. [online] Available at: https://www.heidelberg.com/en/company/press/releases/2025/heidelberg-and-vincorion-to-collaborate-on-power-electronics-for-defense.htm
[2] Heidelberger Druckmaschinen AG. (2025). Heidelberg reports strong start to 2025/26 financial year. [online] Available at: https://www.heidelberg.com/en/company/press/releases/2025/heidelberg-reports-strong-start-to-202526-financial-year.htm
[3] Heidelberger Druckmaschinen AG. (2025). Heidelberg to enter defense sector with strategic partnership. [online] Available at: https://www.heidelberg.com/en/company/press/releases/2025/heidelberg-to-enter-defense-sector-with-strategic-partnership.htm
[4] European Commission. (2021). EU defence industrial development: a European approach. [online] Available at: https://ec.europa.eu/info/strategy/priorities-digital-era/defence-industrial-development_en
[5] VINCORION. (2025). VINCORION and Heidelberg to collaborate on power electronics for defense. [online] Available at: https://www.vincorion.com/en/press-and-media/press-releases/vincorion-and-heidelberg-to-collaborate-on-power-electronics-for-defense.html
The partnership between HEIDELBERG and VINCORION Advanced Systems GmbH aims to expand HEIDELBERG's technology in the defense sector, particularly in power control and distribution systems.
This strategic move is anticipating to generate at least €100 million in revenue over the next three years, enhancing HEIDELBERG's growth potential and resilience.
