Rieter Demonstrates Resilience in the Challenging First Half of 2025
In the first half of 2025, Rieter recorded an order intake of CHF 355.4 million (first half of 2024: CHF 403.4 million). This corresponds to a decline of around 12% compared to the same period last year. The expected broader market recovery has led to shifts in investment decisions on the part of customers due to the global trade disputes (particularly US punitive tariffs) and the geopolitical uncertainty.
As already announced in March 2025, the first half of 2025 presented a challenge in terms of revenue volume, but still largely met expectations due to the low order backlog. Revenue amounted to CHF 336.2 million, down 20% on the previous year’s period (first half of 2024: CHF 421.0 million).
Decline in Order Intake
The Machines & Systems Division posted an order intake of CHF 166.9 million (first half of 2024: CHF 211.5 million). Although Machines & Systems recorded an increase in demand, the closing of orders was significantly impaired by uncertainty surrounding customs tariffs and the geopolitical and economic situation.
The Components Division generated an order intake of CHF 95.7 million (first half of 2024: CHF 117.6 million) and is suffering under lower demand for components for new machines, primarily as a result of the cautious investment activity in the market.
The After Sales Division recorded a gratifying 25% increase in its order intake to CHF 92.8 million (first half of 2024: CHF 74.3 million). This positive development confirms the strategic growth initiatives that have been initiated. Incoming orders are benefiting from increased sales activities in the target markets, such as Central Asia and China, as well as from the ongoing expansion of the service and repair network.
Market Uncertainty Affects Sales
The Machines & Systems Division posted sales of CHF 144.0 million (first half of 2024: CHF 198.7 million), which corresponds to a decline of around 28%. At the same time, uncertainties surrounding market developments led to project delays for individual customers, which had a negative impact on the order intake and sales.
In the Components Division, revenue fell by 10% year on year to CHF 113.9 million (first half of 2024: CHF 126.5 million). Sales in the business units focusing on new machines remained below the previous year’s period, while the business areas focusing on consumables or man-made fibers were more stable.
The After Sales Division posted sales of CHF 78.3 million (first half of 2024: CHF 95.8 million). While business involving upgrades and repairs (Engineered Solutions) developed in a positive manner, the weaker sales performance of Machines & Systems led to lower revenue generated through the installation of new systems.
Order Backlog
As at June 30, 2025, the company had an order backlog of around CHF 510 million (first half of 2024: CHF 640 million).
Rieter Closed the First Half of 2025 with a Loss of CHF 20 Million
The reporting period was affected by non-recurring effects from the planned acquisition of Barmag and restructuring costs in the amount of CHF 14.6 million. Despite the decline in sales, Rieter achieved an operating result (before restructuring and transaction costs) of CHF -2.7 million.
Due to existing capacities and the fixed cost structure, revenue in the first half of 2025 was below the operational break-even point. Rieter continues to assume that sales will be significantly higher than the current level in a normalized market environment.
Rieter was again able to save a substantial amount of overhead costs. These amounted to around CHF 104.9 million in the first half of 2025 (first half of 2024: CHF 119.8 million). The figures demonstrate that the defined cost-saving measures were consistently implemented.
Rieter closed the first half of 2025 with a net loss of CHF 20.0 million (first half of 2024: CHF 1.7 million). This decline is attributable to the lower sales volume achieved in the first half of 2025.
Outlook for the Full Year 2025 Adjusted
The Rieter Group expects a stronger second half of the year for the 2025 fiscal year, though this depends on a continued market recovery. As the market recovery has slowed due to macroeconomic uncertainties, Rieter is adjusting its sales forecast for 2025 as a whole. The company (without consideration of the Barmag Division) now expects sales of around CHF 750 to 800 million (previously: at the prior year’s level of around CHF 860 million).
Excluding restructuring costs and costs associated with the acquisition of Barmag, Rieter expects an operating EBIT margin at the lower end of the range of 0% to 4% for 2025 as a whole.
