Overview
Swiss textile machinery firm's 2025 sales fell 20%, missing analyst expectations
Company achieved positive operating EBIT of CHF 2.5 mln despite sales decline
Rieter completed acquisition of Barmag, expanding into man-made fiber market
Outlook
Rieter expects 2026 sales between CHF 1.3 bln and CHF 1.5 bln
Company anticipates 2026 operating EBIT margin of 0 to 3%
Rieter outlines medium-term targets with sales scenarios up to CHF 2.2 bln
Result Drivers
ACQUISITION OF BARMAG - Rieter expanded into the man-made fiber market with the acquisition of Barmag, enhancing its market position and technological leadership
COST MEASURES - Positive operating EBIT achieved despite sales decline, attributed to consistent implementation of cost measures
AFTER SALES GROWTH - After Sales Division order intake increased by 6%, driven by strategic growth initiatives and network expansion
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Sales
Miss
CHF 685.10 mln
CHF 692.27 mln (3 Analysts)
FY EBIT
CHF 2.50 mln
FY Orders
CHF 703.40 mln
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy."
Wall Street's median 12-month price target for Rieter Holding AG is CHF4.00, about 15.6% above its February 25 closing price of CHF3.46
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 67 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)