The order situation of the machine factory Berthold HERMLE AG developed significantly better than expected in the third quarter of 2025. The reason for this interim high is new large projects from abroad, some of which come from companies with a start-up character and are associated with corresponding opportunities and risks. As a result, the order intake of the Swabian machine tool and automation specialist increased by 4.7% to €353.0 million in the first nine months of 2025 compared to the comparable previous year period (previous year: €337.1 million). New orders from abroad amounted to €255.8 million (previous year: €218.3 million), which corresponds to an increase of 17.2%. In contrast, domestic order intake was €97.2 million, 13.2% below the comparable figure (previous year: €118.8 million). The demand weakness observed in the first half of the year continued due to the erosion of the quality of the industrial location Germany and based on the still extremely uncertain framework conditions in the third quarter. Consequently, the large discrepancy between the developments in domestic and foreign markets further increased.
As of September 30, 2025, the order backlog of the HERMLE Group amounted to €124.4 million, exceeding both the previous year's figure of €103.8 million and the level at the turn of the year (January 1, 2000: €98.7 million).
The encouraging order intake, which continued in October, is expected to primarily impact the business volume in the fourth quarter of 2025 due to short delivery times. In the first three quarters, the HERMLE Group's revenue decreased by 10.0% to €327.3 million (previous year: €363.8 million). This was due to a decline in domestic volume of 32.5% to €91.1 million (previous year: €135.0 million). Foreign sales slightly increased by 3.2% to €236.2 million (previous year: €228.8 million) during the reporting period, partly due to pull-forward effects due to impending tariff increases for customers from the USA. The growing service business also had a stabilizing effect.
As a result of lower utilization, HERMLE's operating profit from January to September 2025 decreased disproportionately as expected. However, the decline slowed in the third quarter because the comparison basis was lower due to the subdued development in the second half of 2024. The financial and asset situation of the company remained solid.
As of September 30, 2025, HERMLE reported a similar equity ratio of over 70% and high liquid assets in the group as on the previous year's reporting date.
Investments in tangible assets and intangible assets during the reporting period amounted to €18.5 million (previous year: €32.9 million) and focused on ongoing projects to secure the location. The focus was on completing a new large parts production facility at the Zimmern ob Rottweil site, which was commissioned in early October, as well as the construction of a new application center at the company's headquarters in Gosheim. Work there is progressing well: the roof of the new building is expected to be closed by the turn of the year.
At the end of September 2025, HERMLE employed 1,649 employees worldwide, which was 49 more than a year ago (September 30, 2024: 1,600) and 46 more than at the end of 2024 (January 1, 2000: 1,603). New hires were made in the areas of service and automation, as well as selectively in some foreign subsidiaries. However, the majority of the increase resulted from the takeover of trainees and dual students who successfully completed their studies, particularly in the IT sector, and the refilling of the corresponding vacancies. This demonstrates the company's continued commitment to its regional responsibility and ensures a highly motivated and competent workforce in the future. As of the reporting date, 153 young people were completing their training or a dual study program at HERMLE, 21 more than a year earlier (previous year: 132).
Since the new order intakes from abroad are predominantly to be delivered by the end of 2025, utilization is expected to increase significantly in the fourth quarter. Therefore, short-time work is expected to be lifted from the end of September until the turn of the year. In the first quarter of 2026, further downtime and short-time work are planned, as HERMLE is expected to start the next year again with a low order backlog.
The outlook for the current year has improved significantly due to the unexpectedly strong order intake in the third quarter, which continued into October. Therefore, HERMLE has raised its forecast for 2025 and now expects revenue to reach nearly the previous year's level or, in a favorable case, to be slightly above it. Until now, a decline in the upper single-digit percentage range to 15% was expected. However, due to the various burdens from bureaucratic requirements and unfulfilled reform promises, wage and energy price increases, pressure on the industrial location Germany, and currency fluctuations, operating profit is still expected to decrease by 25% to 30%. Previously, a reduction of 40% to 80% was anticipated.
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