Rieter Reports CHF 336.2 Million In H1 2025 Sales Amidst Market Challenges
Rieter, the world’s leading supplier of systems for manufacturing yarn from staple fibres, has reported a sales figure of CHF 336.2 million for the first half of 2025, marking a 20% decline compared to CHF 421.0 million in the same period last year. The order intake also dropped by 12% to CHF 355.4 million, reflecting a cautious investment climate shaped by global trade disputes—particularly US punitive tariffs—and continuing geopolitical uncertainties.
The company noted that its Machines & Systems Division recorded a significant decline in both sales and order intake, down 28% and 21% respectively, as uncertainties and delays in project decisions impacted customer investments. The Components Division also experienced a 10% decline in sales and a 19% reduction in order intake, largely due to lower demand for components in new machines. On a more positive note, the After Sales Division recorded a strong 25% increase in order intake to CHF 92.8 million, driven by targeted sales initiatives and the expansion of service networks in Central Asia and China.
In terms of regional performance, Rieter saw mixed results. While sales in China rose by 27% and the Americas posted a 24% increase, other key regions showed sharp declines. Sales in Türkiye fell by 70%, Africa dropped by 76%, and other Asian countries excluding China and India declined by 31%. India itself saw a 20% decline in sales compared to the first half of 2024.
Despite lower volumes, Rieter’s efforts to control costs bore some fruit. The company reduced overhead costs to CHF 104.9 million, down from CHF 119.8 million a year earlier, by implementing strict cost-saving measures. However, this was not sufficient to offset the impact of lower sales and non-recurring expenses. As a result, the company posted an operating loss of CHF 2.7 million before restructuring and transaction costs. Including these costs, the EBIT loss widened to CHF 17.3 million, and the net loss for the period stood at CHF 20.0 million. Free cash flow also turned negative at CHF -36.7 million due to increased inventories and lower customer retrieval of finished goods.
Looking ahead, Rieter has scheduled an Extraordinary General Meeting on September 18, 2025, to seek approval for capital increases aimed at financing the acquisition of the Barmag Division. Shareholders will also vote on the reintroduction of the capital band and a capital reduction. Rieter’s key shareholders, Peter Spuhler and Martin Haefner, who together hold approximately 43% of the company, have pledged support and committed to participating in the rights issue and private placement.
In light of the subdued market recovery, Rieter has revised its full-year 2025 outlook. The company now expects annual sales (excluding the Barmag Division) in the range of CHF 750 to 800 million, down from the previously anticipated CHF 860 million. It also forecasts an EBIT margin at the lower end of the 0% to 4% range, excluding restructuring and acquisition-related costs.
Despite current challenges, Rieter remains confident that a normalized market environment will bring stronger sales and improved performance in the second half of the year.
