Fashion
Switzerland’s Rieter orders steady at $907 mn amid cautious market
The components division generated CHF 193.5 million (~$249.6 million) in orders amid cautious investment in new machinery, while the After Sales division posted a 6 per cent increase to CHF 163.6 million, supported by expanded service networks and stronger activity in Central Asia and China.
Rieter has reported stable 2025 order intake of CHF 703.4 million (~$907.4 million) despite market uncertainty, while sales fell 20 per cent to CHF 685.1 million (~$883.8 million).
Cost controls delivered positive operating EBIT, but Barmag-related charges led to a net loss.
The Barmag acquisition expands fibre capabilities.
For 2026, Rieter projects CHF 1.3-1.5 billion ($1.68-1.94 billion) sales.
Group sales declined 20 per cent YoY to CHF 685.1 million (~$883.8 million) from CHF 859.1 million, reflecting subdued market demand. Sales in Machines and Systems dropped 23 per cent to CHF 329.1 million, Components fell 19 per cent to CHF 200.8 million, and After Sales decreased 17 per cent to CHF 155.2 million. Order backlog stood at around CHF 510 million at the end of 2025, Rieter said in a press release.
Despite weaker sales, Rieter achieved a positive operating EBIT of CHF 2.5 million through cost control measures. However, restructuring expenses and transaction costs related to the Barmag acquisition, totalling CHF 54.2 million, resulted in a net loss of CHF 63.4 million for the year compared with a net profit of CHF 10.4 million in 2024. Free cash flow turned negative at CHF 40.6 million, although net liquidity improved to CHF 184.3 million following a capital increase completed in October 2025.
Given the negative earnings, the board has proposed no dividend distribution while reaffirming its long-term policy of paying at least 40 per cent of net profit. The equity ratio strengthened to 53.3 per cent at the end of 2025, reflecting the capital raise linked to the acquisition.
Rieter completed the acquisition of Barmag on February 2, 2026, integrating the business as its new Man-Made Fiber Division. The move expands the company’s capabilities beyond short-staple fibre machinery, positioning it as a system supplier across natural and man-made fibre processing and strengthening technological capabilities in automation and digitisation.
The company expects at least CHF 20 million in synergies from the acquisition and has outlined new medium-term scenarios. Depending on market conditions, annual sales could range from CHF 1.4 billion with 2-5 per cent operating margins in a subdued environment to CHF 2.2 billion with margins of 8-11 per cent under strong demand.
For 2026, which Rieter described as a transition year, the group forecasts sales between CHF 1.3 billion and CHF 1.5 billion ($1.68-1.94 billion) and a positive operating EBIT margin of 0-3 per cent as integration and restructuring initiatives progress. Financing for the combined entity’s development is fully secured.
Fibre2Fashion News Desk (SG)