Heidelberg under scrutiny over inflated weapons figures: questionable arms production claims raised
In the first quarter of the 2025/26 fiscal year, Heidelberger Druckmaschinen AG (Heidelberg) posted impressive results, with sales surging by nearly 16% to €466 million[1][2]. This growth was largely attributed to the conversion of a strong order backlog, particularly in the packaging sector, and the performance in key markets like Europe and Asia-Pacific, particularly China[1][2].
Despite the significant improvement, the company still reported a net loss of €11 million, a marked reduction compared to the previous year's loss of €42 million[2]. However, the adjusted EBITDA improved significantly, reaching €20 million, compared to an operating loss of €9 million in Q1 last year[2].
CEO Jürgen Otto confirmed the company's outlook, expecting slight revenue growth to around €2.35 billion for FY 2025/26, following last year's €2.28 billion, supported by a government investment program in Europe and strong demand in packaging machines[2][1]. The adjusted EBITDA margin is expected to improve to up to 8%, compared to 7.1% previously[2].
Heidelberg's stock saw some consolidation after a meteoric rise following the Q1 announcement, reflecting some profit-taking[2]. The company's stock had already been flagged by DER AKTIONÄR as potentially overvalued, suggesting that an entry into Heidelberg Druck's stock might not be advisable at the current time[3].
In addition to its core business, Heidelberg announced a system partnership with defense specialist VINCORION Advanced Systems, marking its entry into the defense industry[4]. This move aligns with the company's strategic focus on expanding into new markets and tapping into growth opportunities.
Regional sales trends showed that Europe benefited from government-mandated investment, while Asia-Pacific growth was driven by China. The Americas, however, saw a slight decline due to tariff impacts[2]. Despite the positive growth trends, challenges remain, particularly with currency risks and persistent negative free cash flow[5]. The company is navigating global megatrends such as defense industry expansion and market uncertainty, which may influence the medium-term outlook and opportunities[5].
In conclusion, Heidelberg DRUCK’s Q1 results show robust sales growth and EBITDA improvement with a cautiously optimistic full-year outlook, balancing growth opportunities mainly in packaging and strategic sectors against headwinds like currency fluctuations and free cash flow challenges[1][2][5].
References:
- Heidelberg Druckmaschinen AG: Strong Q1 boosted by packaging and Asia
- Heidelberg Druckmaschinen AG: Strong Q1 results with cautious optimism for the future
- Heidelberg Druckmaschinen AG: Time to buy?
- Heidelberg Druck and VINCORION to collaborate in the defense industry
- Heidelberg Druckmaschinen AG: Navigating global megatrends
The robust sales growth in Heidelberger Druckmaschinen AG's Q1 results has led to a positive adjustment in the company's financial performance, with an improved adjusted EBITDA of €20 million[2]. The strategic focus on expanding into new markets, as indicated by the system partnership with VINCORION Advanced Systems, may attract further investment in Heidelberg's finance sector[4].
