As expected, turnover and earnings down on the previous year
HERMLE slowed down by the weak economic conditions in 2024
As expected, turnover and earnings down on the previous year
International companies and service business have a stabilising effect
Dividend proposal of €10.05 (previous year €15.05) per preference share
Difficult economic climate leads to considerable declines in 2025
Gosheim, 19 March 2025 – As expected, the business activities of Maschinenfabrik Berthold HERMLE AG were affected by the sluggish machine tool industry in 2024. According to provisional calculations, the incoming orders of the southern German machine tool and automation specialist fell across the Group by roughly 8% to about €457 million (previous year €495 million), wherein foreign demand tended to be more stable than domestic demand. As such, HERMLE significantly outperformed the industry average, a success the company attributes primarily to its strong position in the fields of automation and complete machining as well as its increasing internationalisation. At the end of 2024, the HERMLE Group had orders on hand totalling roughly €99 million (previous year €131 million).
According to, as yet, unaudited provisional figures, the HERMLE Group turnover was roughly €488 million (previous year €532 million). Once again, international sales fared better than domestic ones. HERMLE achieved growth, particularly in several non-European markets. The service business also had a stabilising effect, driven by the growing number of installed automation solutions for customers.
The Group’s provisional and, as yet, unaudited operating result (EBIT) of €86 million was, as forecast, well below the previous year’s very good level of roughly €116 million. The primary reason for this was lower capacity utilisation, but increased regulatory expenses, growing competitive pressure and rising staff costs driven by an expanding workforce, wage increases and a persistently high sickness absence rate also had an impact.
In view of this, the Management Board today recommended that the Supervisory Board proposes a dividend of €10 per ordinary share and €10.05 per preference share (previous year €15 and €15.05) for the 2024 financial year at the Annual General Meeting (AGM) on 2 July 2025. The distribution consists of an unchanged basic dividend of €0.80 per ordinary share and €0.85 per preference share plus a reduced bonus of €9.20 per share (previous year: €14.20). After the dividend payment, HERMLE employees in Germany will once again receive a bonus linked to the distribution.
Given the challenging, highly risky and unpredictable conditions at present, any forecast for the 2025 financial year is given with a significant degree of uncertainty. Like the German Mechanical Engineering Industry Association (VDW), HERMLE hopes to see stabilisation of the market this year but anticipates a further decline in incoming orders if unfavourable conditions persist. HERMLE currently expects Group turnover to decline by just under 10% in 2025, with a drop of around 20% or more predicted in the worst-case scenario. Earnings before interest and taxes (EBIT) are expected to fall by at least 40% and, in disadvantageous conditions, by as much as 90%. One of the biggest risks at present is the new U.S. President’s threat of imposing steep tariff increases of 25% against European manufacturers, not only in the automotive industry. This could affect the capacity utilisation of many companies in Europe, thus reducing their demand for machine tools and impacting overall price quality more than previously anticipated.
In the medium term, however, the company still expects strong global demand for high-performance machine tools and production systems, despite regional market shifts. Thanks to its strong position in automation and complete machining, outstanding product and service quality, increasing internationalisation, a highly skilled and motivated team and an extremely solid financial footing, HERMLE is well positioned
to benefit above the industry average.
HERMLE expects to publish its complete, audited figures for the 2024 financial year at the end of April 2025.
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
