HERMLE in the first half of 2025: Decline domestically, increase internationally
HERMLE in the first half of 2025: Decline domestically, increase internationally
Number of incoming orders decreased by 6% to €m 236
Group turnover down 8% on previous year at €m 222
Operating result at €m 15.3 (previous year: €m 38.5)
Outlook for 2025 as a whole specified: Turnover and result
anticipated at the midpoint of the forecast range
Maschinenfabrik Berthold HERMLE AG was impacted by the challenging economic environment in the first half of 2025, yet delivered slightly better-than-expected results overall, supported by growth abroad. The number of incoming orders of the Swabian machine tool and automation specialist fell by 6.0% across the Group to €m 235.9 compared to the corresponding previous year’s figure (previous year: €m 250.9). Demand varied greatly from region to region: While new orders in Germany decreased by 22.9% to €m 68.4 (previous year: €m 88.7), they rose by 3.3% to €m 167.5 internationally (previous year: €m 162.2). At the end of June 2025, the Group’s order backlog amounted to €m 113.1 (31.12.2024: €m 98.7).
HERMLE links the low willingness to invest domestically to the widespread weak capacity utilisation of companies and high levels of uncertainty. Given the strong export orientation of many industries that HERMLE supplies, the increasing tariff and trade conflicts have an especially pronounced impact here. Added to this are multiple crises, such as the energy transition and the automotive industry’s shift to alternative drive technologies, which are further exacerbating the situation. In contrast, foreign orders benefited from pull-forward effects of customers in the USA during the reporting period ahead of impending tariff increases.
HERMLE Group turnover rose by 8.4% to €m 221.6 during the first six months of 2025 (previous year: €m 241.8). Domestic sales declined by 34.0% to €m 59.2 (previous year: €m 89.7). Non-domestic turnover rose by 6.8% to €m 162.4 (previous year: €m 152.1), meaning the export quota improved from 62.9% to 73.3%. In addition to growing international business, higher service revenue also provided a stabilising effect. In this area, HERMLE benefited from the steady increase in the number of HERMLE systems installed at customer sites and the trend towards complex automation solutions.
As expected, the operating result across the Group declined significantly more than turnover during the reporting period, falling by 60.3% to €m 15.3 (previous year: €m 38.5). This was primarily due to weak demand-driven capacity utilisation, which could only be offset to a limited extent by reducing flexitime accounts and implementing short-time work. Additionally, the sharply increased tariff duties and the negative currency effects due to the weaker U.S. dollar exchange rate also had an impact, though to a lesser extent. Other negative factors included unproductive additional expenses due to excessive bureaucracy, intensified competition and rising commissions resulting from the increasing proportion of foreign sales. Ordinary business amounted to €m 16.7 (previous year: €m 40.6), resulting in a gross margin on turnover of 7.5% (previous year. 16.8%). After taxes, HERMLE had a half-year result of €m 11.8 (previous year: €m 29.8). The operative cash flow in the first six months was €m 19.8 (previous year: €m 36.7).
Overall, HERMLE’s business performance in the first half of 2025 slightly exceeded expectations, driven by the pull-forward effects outlined above. Therefore, despite the current high level of uncertainty and the difficulty of forecasting future developments, the company currently expects turnover and result for 2025 as a whole to reach the midpoint of the forecast ranges, with the most adverse scenarios ruled out. HERMLE now anticipates Group turnover to fall between the upper single-digit percentage range and a good 15%. To date, losses of up to 25% were also not ruled out. The operating result is expected to decrease by 40% to 80%. Until now, a 90% decline also appeared possible.
Regardless of the current economic downturn, HERMLE is proceeding with its planned future projects at all its locations. In the first six months of 2025, investments in tangible and intangible assets totalled €m 9.2 (previous year: €m 19.4). They mainly concerned the installation of the additional production facility for large parts at the Zimmern ob Rottweil location and the construction of a new technology and training centre at the company headquarters in Gosheim.
These major projects can be implemented thanks to the company’s continued solid financial footing: As of 30 June 2025, HERMLE had liquid funds of €m 139.6 within the Group (31.12.2024: €m 107.4) and the equity ratio was 72.2% (31.12.2024: 74.1%).
This solid footing also enables HERMLE to continue its ambitious R&D activities at a high level. The current focus is on upgrading the electrical architecture and hardware/software of the entire machine range to the next generation (GEN2), ensuring HERMLE’s offerings remain future proof, technology neutral, service friendly and flexible. Another R&D focus is expanding automation expertise.
HERMLE also maintained its long-term HR policy during the reporting period. At the end of June 2025, 1,607 people were employed across the Group compared with 1,603 on 31 December 2024. However, amid the current economic downturn, the company limited new hires in the first half of 2025, filling vacancies only when absolutely necessary.
In the medium term, HERMLE continues to expect strong global demand for high-performance machine tools and automation solutions.
Press contact: Redaktionsbüro tik GmbH, Gabriele Rechinger,
T 0911 988 170 72, E-Mail: info@tik-online.de
Imagematerial: Maschinenfabrik Berthold HERMLE AG, Marketing departure , E-Mail: marketing@hermle.de
78559Gosheim
