First quarter 2025: Signs of recovery in some markets, increase in order intake

Group

Demand for Bucher Industries’ products and services increased during the first quarter of 2025. Led by the Kuhn Group division, which benefited from a greater willingness of the farmers to invest in Europe, order intake was higher overall than in the prior-year period. Bucher Hydraulics also posted growth, while demand for glass forming machines continued to fall. Group sales reflected the lower order book at the beginning of the year and continued to decline compared to the prior-year period, although Bucher Municipal continued to grow. The cost-saving measures already initiated were consistently continued at locations with low capacity utilisation.

Kuhn Group

Investment confidence recovers

Farmers’ willingness to invest improved in the first quarter of 2025. While interest rates and production costs remained high, good weather conditions in Europe in particular and high crop yields in Brazil led to further confidence and increased demand for agricultural machinery. As a result, the high inventories of many retailers were reduced. Overall, Kuhn Group’s order intake rose significantly. The dairy farming and livestock segments in particular benefited from high global meat prices and stable milk prices. The European market also performed well. Kuhn Group’s sales fell compared to the prior-year period. Capacity utilisation remains low, particularly at production sites that focus on arable farming. Kuhn Group is continuing to work on optimising its costs.

Outlook for 2025

The reduction of the above-average inventories in the dealer network for agricultural machinery is progressing. Kuhn Group expects stable sales on a comparable basis and an operating profit margin in the region of the 2024 level.

Bucher Municipal

Further increase in sales

Bucher Municipal continued to experience high demand in a stable market situation. Order intake was marginally below the very strong prior-year period. The compact sweeper and sewer cleaning vehicle segments developed particularly positively in the first three months. The former also benefited from increased demand for electrified vehicles. Orders for truck-mounted sweepers, winter maintenance equipment and refuse collection vehicles declined. The maintenance services and spare parts business remained stable. Sales once again exceeded the prior-year period. The markets in America and Asia in particular contributed to growth.

Outlook for 2025

Bucher Municipal expects demand to fall slightly from a high level and stable sales on a comparable basis. The operating profit margin is likely to increase further.

Bucher Hydraulics

Increase in order intake

Demand in the hydraulics markets rose in the first quarter of 2025, and order intake at Bucher Hydraulics exceeded the figure for the prior-year period. The stabilisation was evident in various regions and segments, with demand for stationary industrial hydraulics in particular recording a further increase. In the agricultural machinery segment, demand remained at the low level of the prior-year period. The division’s sales fell. Cost-saving measures were consistently continued. The first quarter of 2025 also includes the results of the acquisition of Hydman Oy, now Bucher Hydraulics Oy. With this supplier of hydraulic systems, Bucher Hydraulics is further strengthening its market position in northern Europe.

Outlook for 2025

Bucher Hydraulics expects demand to recover in the course of 2025 and is anticipating slight sales growth on a comparable basis along with a slightly higher operating profit margin.

Bucher Emhart Glass

Decline in demand

Bucher Emhart Glass customers continued to be cautious with investments in the first quarter of 2025, and order intake was therefore significantly below the prior-year period. Orders for glass forming machines and sections in particular remained at a low level. The inspection machinery segment, on the other hand, saw slight gains. The division also benefits from the large number of installed glass forming machines and its high share of the spare parts business, which offers stability in the current difficult environment. Sales included projects postponed from 2024 to the current year but were still below the prior-year period. Production planning was adjusted in line with the lower order book and capacities were further reduced.

Outlook for 2025

Bucher Emhart Glass expects the demand for glass container manufacturing equipment to recover towards the end of 2025 following the reduction of the stocks of glass containers. The division anticipates significantly lower sales on a comparable basis compared with the high level of the prior year. Accordingly, the operating profit margin is expected to be significantly lower than in 2024.

Bucher Specials

Mixed business development

Bucher Specials markets once again presented a mixed picture in the first quarter of 2025. Demand was significantly below the prior-year period at Bucher Vaslin and Bucher Automation but remained high at Bucher Unipektin. Bucher Landtechnik recovered slightly at a low level. Incoming orders were in line with the prior-year period, but division sales fell. The efficiency measures and reorganisations initiated last year were continued.

Outlook for 2025

The division anticipates sales growth on a comparable basis. Higher capacity utilisation and the efficiency measures taken are likely to lead to a higher operating profit margin.

Group outlook for 2025

The impact of increasing trade policy uncertainty on demand for capital goods is currently difficult to assess. However, with its strategic approach of local production close to its customer base, Bucher Industries is well positioned in the current environment. The Group therefore continues to expect stable sales for 2025 on a comparable basis. The Group expects the sale of a property not required for operations during 2025. The sale is expected to increase the operating profit margin by around 1.4 percentage points. Excluding this divestment, Bucher Industries expects an operating profit margin for 2025 at the prior-year level.

Share buyback programme

Due to its solid financial position and the continued strong cash generation expected, Bucher Industries will start its previously announced share buyback programme of up to 410’000 registered shares for the purpose of capital reduction on 5 May 2025. All necessary regulatory approvals have been obtained. Further information on the share buyback programme is available at bucherindustries.com.