Rieter FY EBIT loss CHF43.9M, est. loss CHF28.1M (2 est.)

Rieter FY EBIT loss CHF43.9M, est. loss CHF28.1M (2 est.)

Rieter Reports CHF43.9 Million EBIT Loss for 2024, Below Estimates

Rieter Holding Ltd. (SIX: RIED) reported a full-year 2024 EBIT loss of CHF43.9 million, significantly wider than the estimated loss of CHF28.1 million. The Swiss industrial machinery manufacturer faced persistent challenges in global markets, driven by geopolitical tensions, trade disputes, and cautious customer investment decisions.

For the first half of 2025, Rieter's performance reflected ongoing headwinds. Order intake fell 12% year-on-year to CHF355.4 million, with the Machines & Systems Division declining 21% to CHF166.9 million and the Components Division dropping 19% to CHF95.7 million. The After Sales Division bucked the trend, achieving a 25% increase in order intake to CHF92.8 million, supported by expanded service networks and growth in Central Asia and China.

Sales for the first half of 2025 totaled CHF336.2 million, down 20% from CHF421.0 million in the prior-year period. The Machines & Systems Division saw a 28% decline to CHF144.0 million, while the Components Division fell 10% to CHF113.9 million. After Sales revenue dropped 18% to CHF78.3 million, impacted by weaker sales in new systems.

Rieter's operating EBIT for the first half of 2025 was CHF-2.7 million, a 126% decline from CHF10.2 million in 2024. Excluding restructuring costs and Barmag acquisition expenses, the company remained below its operational break-even point. Free cash flow turned negative at CHF-36.7 million, driven by inventory buildups and net losses.

The company adjusted its full-year 2025 outlook, forecasting sales of CHF750–800 million (previously CHF860 million) due to slower market recovery. Excluding one-time costs, Rieter expects a full-year 2025 operating EBIT margin of 0%–4%.

Rieter's planned acquisition of Barmag, pending regulatory approval, remains a strategic priority. An Extraordinary General Meeting on September 18, 2025 will address financing via a rights issue and private placement.

While cost-saving measures reduced overhead expenses by CHF14.9 million year-on-year, macroeconomic uncertainties continue to weigh on near-term profitability. Investors will closely monitor the pace of market recovery and execution of strategic initiatives.