Heidelberger Druckmaschinen AG

Heidelberg reported Q1 order intake of EUR 537 million versus EUR 560 million a year ago, net sales of EUR 404 million versus EUR 466 million, adjusted EBITDA of EUR 1 million versus EUR 20 million, and an adjusted EBITDA margin of 0.2% versus 4.4%. Free cash flow was negative EUR 77 million versus negative EUR 68 million last year, and the company recorded a net loss of EUR 32 million. On the balance sheet, equity was EUR 536 million, the equity ratio was 24.3%, net financial position was negative EUR 39 million, and undrawn revolving credit facility capacity was EUR 298 million out of EUR 436 million. For full-year FY2026-2027, management confirmed guidance for net sales to remain broadly stable versus the prior year and for a noticeable improvement in adjusted EBITDA margin, excluding currency effects; segment guidance calls for a noticeable decline in Print & Packaging Equipment sales with significantly higher margins, slight sales growth and modest margin dilution in Digital Solutions & Lifecycle, and significant growth in both sales and margin in Heidelberg Technology.

Jurgen Otto framed the quarter as a continuation of a difficult market backdrop but emphasized that Heidelberg is executing a longer-term transformation. He highlighted cost optimization, digitalization, and the buildout of a second pillar in HD Advanced Technologies, including security and defense, energy storage, and e-mobility. His tone was confident on strategy and diversification, with repeated references to synergies, shared technology capabilities, and long-term growth potential.

Volker Herdin said the weak Q1 was expected seasonality, with lower sales volumes driving the margin decline, while cost measures partly offset the pressure. He cited a 2% headcount reduction to 9,019, staff costs down to EUR 196 million, and a contribution margin ratio of 32.6%, up 110 basis points year over year. Cash flow was negative in the quarter, but working capital improved by about EUR 15 million year over year to negative EUR 12 million, and the company still had EUR 298 million undrawn on its revolver. He described 2026-2027 as a strong investment year, with free cash flow expected to remain negative for the year but to improve versus the first quarter.

Analysts focused on how Heidelberg can still hit full-year guidance after a weak Q1, and management said the main lever is normalizing sales in the second and third quarters together with cost savings; Volker also said he would expect group margin expansion in Q2 year over year. Questions on Manroland centered on restructuring costs, integration timing, and synergies; management said the full integration is planned over two years and reiterated a stable EUR 100 million plus sales contribution with an EBIT ambition of about EUR 10 million to EUR 15 million per year. On capital returns, management said dividends and buybacks are lower priority than investing in new business areas and strengthening the core, while on Phenogy and Onberg they stressed that commercialization is still early and much of the activity is not yet public.