Heidelberg Druck reported a 30% year-over-year drop in first-quarter 2026/27 net sales to €404 million, alongside a 4% decline in order intake to €537 million, as the German printing equipment manufacturer navigated weak demand in its core markets. Adjusted EBITDA margin contracted to 2% from 4.4% a year earlier, while the contribution margin improved to 32.6%, up 110 basis points year-over-year and 720 basis points sequentially.
The company’s order backlog rose to €762 million, yielding a book-to-bill ratio of approximately 1.3x, though free cash flow remained negative at €77 million due to seasonal inventory restocking, acquisition-related spending and strategic project investments. Personnel costs fell by €12 million to €196 million as headcount declined by 2%, while equity stood at €536 million at the end of June, representing a 24.3% equity ratio. Available liquidity under the revolving credit facility totaled about €300 million.
Heidelberg highlighted progress in its expansion beyond traditional printing, including the July 2025 acquisition of manroland sheetfed, which added over 3,000 customers and 600 employees across 35 countries. The combined entity is expected to generate more than €100 million in annual sales and €10-15 million in annual EBIT within two years of full integration. POLAR, a post-print specialist, is set to relocate production to Heidelberg’s North Macedonia plant, which aims to reach full capacity by 2028.
The company outlined strategic initiatives in defense, critical infrastructure and energy storage. A memorandum of understanding with Vincorion targets power distribution systems for defense primes including Rheinmetall, Hensoldt, RENK and KNDS, with initial revenues recorded in the prior fiscal year. The ONBERG joint venture with Ondas, formed in December 2025, focuses on autonomous drone countermeasure solutions for over 2,000 operational sites in Germany.
Heidelberg also advanced plans for a European industrial platform in sodium-ion battery technology through a partnership with PHENOGY, with a potential 50-50 joint venture under consideration. Its Amperfied subsidiary, active in electric mobility charging, is targeting organic growth of more than 10% annually and plans to launch a proprietary DC charging product in the second half of the fiscal year.
Geographically, sales in Brazil more than doubled, driven by demand for paper packaging, while Mexico benefited from nearshoring trends in labels and packaging. The company maintains a century-long presence in Japan and is pursuing tailored growth strategies in China, Vietnam, India and Africa.
