HERMLE 2025 held its own in a challenging environment
HERMLE 2025 held its own in a challenging environment: New orders up, turnover slightly higher and profits better than expected
In 2026, revenue is expected to rise by 10% at best, with earnings re-maining broadly stable, though declines are also possible
High demand for automation solutions in the medium term is benefit-ing HERMLE
Maschinenfabrik Berthold HERMLE AG performed well in 2025 despite very turbulent external conditions and, overall, exceeded expectations. This was primarily due to a large number of new orders from abroad, some of which were from start-up companies, received in the second half of the year. This enabled the Swabian machine tool and automation specialist to more than offset the continuing weak domestic demand. In total, HERMLE’s order intake for 2025 rose by 5.9% across the Group to €483.8 million (previous year: €456.2 million). New orders from abroad rose by 19.1% to €347.4 million (previous year: €291.1 million), while domestic sales fell by 17.4% to €136.4 million (previous year: €165.1 million). The order book stood at €90.6 million as at 31 December 2025 (previous year: €98.7 million).
As the new projects were completed by the end of 2025, the HERMLE Group’s turnover for the reporting period performed significantly better than expected at the start of the year, standing at €491.9 million – 0.7% higher than the 2024 figure of €487.9 million. Revenue from overseas markets rose by 13.9% to €351.4 million (previous year: €308.5 million), while domestic turnover fell by 21.7% to €140.5 million (previous year: €179.4 million). The export ratio rose to 71.4% (previous year: 63.2%). In addition to the increase in international business, HERMLE also benefited from growing revenue from services which rose due to the increasing proportion of complex automation solutions installed at customers’ premises.
Thanks to the rapid delivery of large orders from abroad, HERMLE’s production capacity was well utilised at times during the second half of the year. Apart from this brief upturn, the company had to resort to furloughs and short-time working again in the remaining months. Further pressure on earnings resulted from increased price and competitive pressure, high staff and energy costs, currency fluctuations and additional administrative burdens. Consequently, the Group’s operating profit of €69.2 million was significantly lower than the previous year’s figure of €85.3 million, but not only exceeded the forecast made at the start of the year, but – due to improved capacity utilisation and value creation in the final weeks of the year – also surpassed the forecast which had been revised upwards in November.
The HERMLE Group’s pre-tax profit for the past financial year amounted to €71.0 million (previous year: €89.0 million), resulting in a gross profit margin of 14.4% – a figure which, while lower than before, is still satisfactory given the circumstances (previous year: 18.2%). Group profit stood at €51.4 million (previous year: €65.9 million).
The individual company HERMLE AG generated a net income of € 52.8 million in 2025 (previous year: €66.2 million) and therefore achieved a balance sheet profit of €104.8 million (previous year: €107.1 million). The Executive Board and Supervisory Board will propose to the shareholders' meeting that a dividend of €9.50 per ordinary share and €9.55 per preference share be paid out (previous year: €11.00 and €11.05). Based on the 2025 year-end share price, this would result in a dividend yield of 5.8% for preference shareholders.
The HERMLE Group’s financial and asset position remained solid: As at the end of December 2025, the company held liquid assets of €81.3 million (previous year: €107.4 million) and the equity ratio was 72.5% (previous year: 74.1%). The operating cash flow for the reporting year stood at €67.6 million (previous year: €80.7 million) and therefore significantly higher than the €24.1 million invested in property, plant and equipment and intangible assets (previous year: €51.3 million). The main focus of the investment was the construction of a new application centre at the company’s headquarters in Gosheim, complete with an adjoining canteen.
The new building is expected to open in 2027 and will also house the HERMLE Open House. At this year’s event, which took place last week to great interest from visitors, the company showcased, among other things, innovative solutions in the fields of complete machining, automation and digitalisation – areas which also form the focus of its R&D activities. The latest developments include further Generation 2 (GEN2) machining centres, the HS flex hybrid handling system, the RS 2 GEN2 robot system and the HERMLE Digital Twin. New products are also planned for this year in the areas of complete machining and intuitive machine operation.
As at the end of December 2025, HERMLE employed 1,639 staff across the Group, compared with 1,603 on the same reporting date the previous year. This modest increase was primarily due to the recruitment of trainees and students who had successfully completed their courses, as well as the filling of vacant training and dual study places. The number of apprentices learning a future-oriented trade at HERMLE rose from 126 to 144 compared with the previous reporting date. In addition, there were a number of new hires in areas such as automation, development, IT and international services.
At the start of 2026, demand at HERMLE had stabilised further. A certain degree of stabilisation was also observed domestically, albeit at a low level. Although the overall economic climate in Germany remains largely unfriendly to investment, HERMLE sees opportunities here in individual projects as well as in the planned public infrastructure and defence initiatives. Furthermore, attracting new customers in various international markets – some of which are start-ups – could have a positive impact.
Against this backdrop, the forecast for the full year 2026 currently assumes that the HERMLE Group’s turnover will, in the best-case scenario, be around 10% higher than the previous year’s figure, and, in the event of unfavourable conditions, in the mid-single-digit percentage range below the previous year’s figure. In the best-case scenario, the operating profit could be close to last year’s level, but it could also be up to 50% lower. As was the case last year, uncertainties remain in this regard. In addition to the still relatively low capacity utilisation, profitability is being affected by, amongst other things, rising staff costs, intense competitive and price pressure, currency effects, as well as bureaucratic requirements and the resulting non-value-adding extra work.
The consequences of the war in Iran, which has further heightened the already extremely high level of uncertainty surrounding future geopolitical and trade policy developments since March, cannot currently be quantified by HERMLE and are therefore not taken into account in this forecast. Ongoing disruptions to oil and gas supplies could lead to further rises in inflation, higher production costs and lower disposable incomes, and consequently to weaker global economic growth. Should supply shortages arise, this would place a very heavy strain on the economies of oil-importing countries. On the other hand, demand could pick up in certain sectors such as aerospace, defence or equipment for the oil and gas industry, although this would probably not offset the negative effects of the conflict.
Regardless of the current macroeconomic situation, HERMLE anticipates that demand for automation solutions and high-performance machine tools will remain strong in the medium term. The company stands to benefit from this thanks to its high level of technological and service expertise, its growing international presence and its reputation as a financially sound and reliable partner.
The full 2025 annual financial statements are available to download from the HERMLE website at www.hermle.de
Press contact: Redaktionsbüro tik GmbH, Gabriele Rechinger,
T 0911 988 170 72, E-Mail: info@tik-online.de
Imagematerial: Maschinenfabrik Berthold HERMLE AG, Marketing Department, E-Mail: marketing@hermle.de
78559Gosheim
