Rieter faces market challenges in first half of 2025

Mohammad Mithun 29 mins agoLast Updated: July 21, 2025

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In the first half of 2025, Rieter, a leading supplier of systems for the textile industry, encountered a challenging environment, marked by a decline in order intake and revenue. Despite this, the company demonstrated resilience, maintaining some stability due to strong demand in certain business areas and ongoing cost-saving measures.

Declining Orders and Revenue

Rieter’s total order intake for the first half of 2025 amounted to CHF 355.4 million, down 12% compared to CHF 403.4 million in the same period last year. This drop can be attributed to shifts in customer investment decisions, influenced by ongoing global trade disputes, particularly US punitive tariffs, and geopolitical uncertainties. The company’s revenue for the first half of 2025 was CHF 336.2 million, marking a 20% decrease from CHF 421.0 million in 2024.

Division-Specific Performance

Machines & Systems Division: The division saw an order intake of CHF 166.9 million, a decrease from CHF 211.5 million in 2024. This decline was primarily driven by delays in order closures caused by market uncertainties.
Components Division: Order intake in this division fell to CHF 95.7 million, down from CHF 117.6 million in the previous year. The lower demand for components, driven by cautious investment in new machines, contributed to the decline.
After Sales Division: In contrast, the After Sales Division experienced growth, with a 25% increase in order intake to CHF 92.8 million, compared to CHF 74.3 million in the first half of 2024. This positive development was attributed to increased sales activities, particularly in Central Asia and China, and the expansion of the service and repair network.

Sales Performance

Sales in the Machines & Systems Division declined by 28%, from CHF 198.7 million in 2024 to CHF 144.0 million. Project delays, resulting from market uncertainties, negatively impacted sales in this area.

The Components Division recorded sales of CHF 113.9 million, a 10% decrease from the previous year’s CHF 126.5 million. Sales of new machines continued to lag, while more stable areas like consumables showed some resilience.

The After Sales Division posted sales of CHF 78.3 million, down from CHF 95.8 million in 2024. While upgrades and repairs performed well, sales from new system installations suffered due to weaker performance in the Machines & Systems Division.

Order Backlog

By June 30, 2025, Rieter had an order backlog of CHF 510 million, compared to CHF 640 million at the same point in 2024. This reduction was due to the lower order intake and slower market recovery.

Financial Impact

Despite the sales decline, Rieter focused on cost containment, reducing overheads by 12% to CHF 104.9 million. However, non-recurring items such as acquisition costs and restructuring efforts impacted profits. The company posted an operating loss of CHF -2.7 million and a net loss of CHF 20.0 million for the first half of 2025, compared to a net loss of CHF 1.7 million in 2024.

Free cash flow also saw a sharp decline, with Rieter recording a negative cash flow of CHF -36.7 million due to both lower net profit and an increase in inventories.

Outlook for the Remainder of 2025

Looking ahead, Rieter remains cautious but optimistic, expecting the market to recover in the second half of 2025. The company has adjusted its sales forecast to around CHF 750 to 800 million, down from the previous estimate of CHF 860 million. The forecast assumes that the market will stabilize, and Rieter continues to forecast an operating EBIT margin between 0% and 4% for the year.

Rieter’s upcoming Extraordinary General Meeting in September will vote on plans to finance the acquisition of the Barmag Division and address capital increases. These efforts aim to strengthen the company’s position in the long term, despite current challenges.

While the first half of 2025 proved difficult for Rieter, the company remains focused on navigating through the uncertainty, with ongoing efforts to control costs and capture opportunities in after-sales and service markets.