The machinery maker that once defined the printing press is now assembling sodium-ion battery systems for a Swiss partner and chasing defence contracts worth hundreds of millions — a transformation that has left shareholders without a dividend for the fourth consecutive year.
Heidelberg Druckmaschinen’s subsidiary HD Advanced Technologies signed a comprehensive industrial partnership with Switzerland’s PHENOGY AG on 21 July, taking on manufacturing, installation and maintenance of sodium-ion battery storage systems. The deal marks another step in the company’s effort to monetise its industrial production expertise beyond the print sector, though financial terms were not disclosed.
The strategic pivot extends well beyond energy storage. At the annual general meeting on 23 July, shareholders approved a plan that channels capital into ONBERG, the defence subsidiary specialising in drone defence, which is targeting revenues of more than €300 million in the medium term. The company is also developing sodium-ion battery cells and building a new production site in China — a capital-intensive programme that is straining the balance sheet and keeping the payout ratio at zero.
The financial picture is decidedly mixed. For fiscal year 2025/26, Heidelberg reported revenue of €2.293 billion and tripled its net profit to €15 million. Yet the EBITDA margin contracted from 7.1 percent to 6.6 percent, signalling persistent operational pressure even as the bottom line improved. Management has guided for a net loss in the low double-digit millions for the current fiscal year 2026/27, suggesting last year’s earnings rebound was driven by one-off effects rather than a sustainable turnaround.
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Investors have taken a sober view of the combination of dividend suspension and loss guidance. The stock closed Friday at €1.36, down 0.80 percent on the day, leaving it just 5.19 percent above its 52-week low of €1.29, which was set on 16 March. The share has lost 33.05 percent since the start of the year — a decline that reflects deep scepticism about whether the diversification strategy will pay off before the traditional business erodes further.
The core operations are not standing still. On 16 July, Heidelberg launched “ChromaStar,” an automated colour dosing system aimed at packaging printers seeking to automate colour control processes. And in early July, packaging manufacturer WINTIPAK placed an order for a “Boardmaster” inline flexographic printing machine, which will produce aseptic food packaging. Such orders suggest demand for specialised packaging solutions remains resilient despite the difficult environment for conventional print technology.
All eyes now turn to 19 August, when Heidelberg reports first-quarter results for fiscal year 2026/27. The numbers will show whether the new business lines — battery storage manufacturing, drone defence and the Chinese expansion — are beginning to contribute meaningfully to group results, or whether the announced loss for the year will make the transformation even more expensive before it starts paying off. For a company whose shares are trading near their floor, the stakes could hardly be higher.
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