Rieter Strengthens Global Growth Ambitions Through Strategic Transformation
Rieter has reached a critical milestone in its strategic transformation by completing the acquisition of Barmag, expanding its operations to include synthetic fibers. Despite challenging market conditions in 2025, the company achieved positive operating profitability and announced new medium-term targets and growth expectations for 2026.
On February 2, 2026, Rieter finalized the acquisition of Barmag, marking a significant step in its strategic repositioning. Barmag will be integrated as the Man-Made Fiber Division within Rieter. This acquisition extends Rieter’s operations beyond the short-staple fiber segment, reinforcing its ambition to be a global player across the entire value chain of natural and man-made fibers. The company also aims to strengthen its technological leadership in automation and digitalization.
As part of Rieter’s long-term growth strategy, this move continues the trajectory set by previous acquisitions. Since the addition of an automatic winding machine in 2021, Rieter has become a single-system supplier covering the full production process—from fiber preparation to four different spinning technologies.
Strong Entry into the Man-Made Fiber Market
With Barmag’s integration, Rieter aims to establish a stronger presence in the structurally growing man-made fiber market. This expansion enhances the company’s resilience to fluctuations in individual markets and strengthens its long-term position, particularly in Asia.
Order Intake Moderately Declines
Rieter’s 2025 order intake remained stable on a currency-adjusted basis, totaling CHF 703.4 million (2024: CHF 725.5 million). Global trade tensions and geopolitical uncertainties delayed the anticipated market recovery.
By division:
- Machines & Systems: CHF 346.3 million (2024: CHF 364.2 million)
- Components: CHF 193.5 million (2024: CHF 206.6 million)
- After Sales: CHF 163.6 million (2024: CHF 154.7 million, +6%)
Growth in the After Sales segment was driven by increasing sales activities in target markets such as Central Asia and China, along with the continuous expansion of the service and repair network.
Sales Down 20%
Rieter Group closed 2025 with CHF 685.1 million in sales (2024: CHF 859.1 million), reflecting a 20% year-on-year decline.
- Machines & Systems: CHF 329.1 million (-23%)
- Components: CHF 200.8 million (-19%)
- After Sales: CHF 155.2 million (-17%)
The year-end order backlog stood at approximately CHF 510 million (Dec 31, 2024: CHF 530 million).
Positive EBIT Despite Net Loss
Despite the decline in sales, Rieter achieved a positive operating EBIT of CHF 2.5 million. However, extraordinary restructuring and transaction costs of CHF 54.2 million related to the Barmag acquisition resulted in a net loss of CHF 63.4 million for 2025 (2024: net profit CHF 10.4 million).
Free cash flow was CHF -40.6 million, while a capital increase raised net liquidity to CHF 184.3 million (2024: CHF -230.3 million). The equity ratio improved significantly to 53.3%.
No Dividend
The Board of Directors has proposed no dividend for 2025 due to negative results. The company continues to maintain its policy of distributing at least 40% of net profit over the long term.
New Medium-Term Targets Announced
Rieter follows a “soft integration” approach for Barmag, confirming synergy expectations of at least CHF 20 million. The company has outlined three market scenarios:
- Low scenario: approx. CHF 1.4 billion in sales, 2–5% EBIT margin
- Medium scenario: approx. CHF 1.8 billion in sales, 5–8% EBIT margin
- High scenario: approx. CHF 2.2 billion in sales, 8–11% EBIT margin
2026 as a Transition Year
Rieter expects 2026 sales to range between CHF 1.3 billion and CHF 1.5 billion, with a positive operating EBIT margin of 0–3%. The necessary financing for further developing the combined company is fully secured.
