Rieter stock rises despite lowered guidance as market recovery slows
Investing.com -- Swiss textile machinery manufacturer Rieter stock rises 2.3% after the company reported first-half results that missed expectations and lowered its full-year guidance due to a slower market recovery.
Rieter’s order intake for the first half of 2025 came in at CHF355 million, falling short of consensus estimates of CHF386 million and representing a 10% year-over-year decline in local currency terms. Sales for the period reached CHF336 million, below the expected CHF353 million, marking a 19% YoY decrease in local currency.
The company reported an adjusted EBIT loss of CHF2.7 million for the first half, compared to consensus expectations of a CHF0.1 million profit, resulting in a negative EBIT margin of 0.8%. Net income was negative CHF20 million, significantly below the consensus estimate of negative CHF7 million.
Despite these disappointing results, Rieter’s order backlog remained relatively stable at CHF510 million, compared to CHF530 million at the end of fiscal year 2024. The company’s first-half results also included a CHF13 million gain from the disposal of land and buildings in Winterthur that were no longer required for operations.
Segment performance varied widely, with the Machines and Systems division experiencing a 20% YoY decline in order intake to CHF167 million and a 26% drop in sales to CHF144 million. The Components segment saw order intake fall 18% to CHF96 million and sales decrease 9% to CHF114 million. The After Sales segment was the only bright spot, with order intake growing 29% to CHF93 million, though sales still declined 16% to CHF78 million.
Rieter has lowered its full-year 2025 guidance, now expecting revenues of CHF750-800 million with an adjusted EBIT margin at the lower end of the 0-4% range. The company previously projected sales to remain at fiscal year 2024 levels of CHF859 million.
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