HEIDELBERG gets off to positive start in new financial year – forecast for 2025/26 confirmed

• Sales and adjusted EBITDA margin for Q1 well up on corresponding quarter of previous year
• Solid incoming orders lay foundations for positive business development
• Free cash flow still negative but much improved compared with equivalent period of previous year
• MoU agreed on system partnership with defense specialist VINCORION
• Full-year forecast confirmed

HEIDELBERG develops and produces innovative control and power electronics. The company intends to use this core technology to open up new business areas, such as the defense sector.

Although the free cash flow after three months was negative, as expected, it was much improved compared with the corresponding period of the previous year. Thanks to the initiation of staffing and efficiency measures, the figure of € –68 million (previous year: € –103 million) was better than envisaged. The net result after taxes in the first quarter amounted to € –11 million, which was a big improvement on the equivalent period of the previous year (€ –42 million).

As of April 1, 2025, HEIDELBERG started basing its reporting on the Print & Packaging Equipment, Digital Solutions & Lifecycle, and HEIDELBERG Technology segments. The Print & Packaging Equipment segment includes offset and flexo solutions, as well as prepress and postpress solutions for packaging and commercial printing. The Digital Solutions & Lifecycle segment covers products and activities relating to software, service, consumables, and digital printing. The HEIDELBERG Technology segment primarily comprises activities outside the company's core business, such as electromobility (Amperfied) and industry operations (production and technology solutions for third-party businesses).

In the Print & Packaging Equipment segment, sales in the first quarter increased by some 42 percent to € 211 million. Digital Solutions & Lifecycle sales matched the previous year's level, totaling € 241 million. Sales after three months in the Technology Solutions segment were also at the same level as in the corresponding period of the previous year. Adjusted EBITDA improved in all the segments.

"Packaging printing remained a growth driver for our business in the first quarter," said David Schmedding, Chief Technology & Sales Officer at HEIDELBERG. "This development reaffirms our growth strategy – the continuous and targeted expansion of our portfolio as a systems integrator for this key market segment. Our acquisition of Polar Mohr brand rights and technology to boost the productivity of value chains in packaging and label production is a further example of this approach." he explained.

As HEIDELBERG sees it, playing a leading role as a systems integrator for packaging and digital printing with hybrid printing solutions and the company's software and service business in a digital ecosystem can offer growth potential in its core business. In the Technology segment, the focus is on expanding the operation of charging infrastructure, including DC technology, and on unlocking new market segments.

MoU agreed on system partnership with defense specialist VINCORION

HEIDELBERG has embarked on its first project in the defense sector and agreed a MoU (Memorandum of Understanding) on a system partnership with VINCORION Advanced Systems GmbH. This cooperation will see HEIDELBERG move into the defense market by developing, industrializing, and building power control and distribution systems for VINCORION. HEIDELBERG is aiming to become established as a reliable partner for high-quality products and gradually expand this role within the defense sector.

Full-year forecast confirmed

Following a positive start, the forecast for financial year 2025/26 is confirmed. In view of macroeconomic developments, taking into account the various opportunities and risks, and assuming the global economy does not see weaker growth than predicted by the relevant institutions, the company is expecting sales of around € 2,350 million in financial year 2025/26 (2024/25: € 2,280 million). The EBITDA margin adjusted for special items is predicted to rise to as much as 8 percent (previous year: 7.1 percent).

Image material and further information about the company are available in the Investor Relations^[1] portal and Press Lounge^[2] of Heidelberger Druckmaschinen AG at www.heidelberg.com^[3].

Important note:

This release contains forward-looking statements based on assumptions and estimates by the management of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the management is of the opinion that these assumptions and estimates are accurate, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the overall economic situation, in exchange and interest rates, and within the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft provides no guarantee and assumes no liability for future developments and results deviating from the assumptions and estimates made in this press release.

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The issuer is solely responsible for the content of this announcement.

References

1. ^{^} Investor Relations (www.heidelberg.com)
2. ^{^} Press Lounge (www.heidelberg.com)
3. ^{^} www.heidelberg.com (www.heidelberg.com)