Gunther Beck, Management Board Finances, Information Processing | Hermle USA, Inc.
Gunther Beck, Management Board Finances, Information Processing | Hermle USA, Inc.
Maschinenfabrik Berthold HERMLE AG reported mixed results for the first half of 2025, as challenging economic conditions led to a decline in domestic business while international demand increased. The group’s incoming orders dropped by 6% year-on-year to €235.9 million, with Germany seeing a 22.9% decrease and international orders rising by 3.3%.
The company attributed the weak domestic performance to low investment willingness among German companies, ongoing capacity underutilization, and uncertainty stemming from factors such as tariff and trade conflicts, the energy transition, and changes in the automotive industry. In contrast, foreign orders benefited from customers in the United States accelerating purchases ahead of expected tariff hikes.
Group turnover fell by 8% compared to the previous year, totaling €221.6 million for the first six months of 2025. Domestic sales declined by 34%, while non-domestic turnover increased by nearly 7%. The export quota improved to over 73%. HERMLE noted that growing international business and higher service revenue helped stabilize results.
The operating result dropped more sharply than turnover, falling by over 60% to €15.3 million due to weak demand-driven capacity utilization. Measures such as reducing flexitime accounts and implementing short-time work provided only limited relief. Additional negative impacts included increased tariff duties, currency effects from a weaker U.S. dollar, bureaucratic expenses, intensified competition, and higher commissions related to foreign sales.
Despite these challenges, HERMLE’s performance slightly exceeded expectations thanks largely to advance purchases abroad. "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," according to company statements.
HERMLE now anticipates group turnover will fall between an upper single-digit percentage range and about 15%, improving on earlier estimates that allowed for declines up to 25%. The operating result is projected to decrease between 40% and 80%, rather than up to a possible 90%.
Investments continued during this period despite lower earnings: €9.2 million was invested mainly in expanding production at Zimmern ob Rottweil and building a new technology center at headquarters in Gosheim.
As of June 30th, HERMLE reported liquid funds of €139.6 million within the group and an equity ratio of just over 72%. This financial position supports ongoing research projects focused on upgrading machine architecture (GEN2) and expanding automation expertise.
The workforce remained stable at around 1,607 employees at mid-year; hiring was limited amid economic headwinds.
Looking forward, HERMLE maintains its expectation for strong global demand for high-performance machine tools and automation solutions.
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