INDUS confirms guidance for 2025

Indus Holding confirms guidance for 2025

• H1 revenue at previous year’s level despite weak economy
• Incoming orders up 8.9%
• US tariffs, export controls and a weaker dollar affect earnings
• Acquisitions and Internationalization advanced, Engineering Competence broadened

Bergisch Gladbach, 12 August 2025 – The Indus Holding Group’s business picked up in the second quarter of 2025, with quarterly revenue of EUR 434.2 million slightly up on the previous year (EUR 429.0 million) in a weak market environment. At EUR 836.6 million, revenue for the first six months were almost on a par with the previous year (EUR 839.1 million). Earnings (adjusted EBITA), at EUR 56.1 million, were down from the previous year (EUR 73.9 million), as expected. This was due to challenging conditions stemming from the protectionist US tariff policy, Chinese export controls and a weaker dollar. The adjusted EBITA margin was 6.7% (previous year: 8.8%). Incoming orders increased by 8.9% to EUR 901.4 million (previous year: EUR 827.8 million), driven primarily by the Engineering segment.

“The macroeconomic environment in both Germany and key export markets suffered from general uncertainty in global trade and geopolitical crises in the first half of 2025,” says Dr. Johannes Schmidt, Chairman of the Board of Management of the Indus Holding Group. “It’s all the more encouraging that we were able to keep revenue almost at the prior year’s level. Our Group is doing well overall. The increase in incoming orders makes us confident.”

Earnings after taxes amounted to EUR 28.6 million in the first half of the year (previous year: EUR 32.1 million). Earnings per share were EUR 1.13 (previous year: EUR 1.21). Against the background of the typical seasonal increase in working capital, free cash flow was EUR -7.9 million (previous year: EUR 41.2 million). In the second quarter, free cash flow already stood at EUR 15.7 million. The equity ratio was 37.8% as of 30 June 2025 (31 December 2024: 38.7%).

EMPOWERING MITTELSTAND growth strategy pushed ahead

The Indus Holding Group has pushed ahead its EMPOWERING MITTELSTAND strategy since the start of the year, using Acquisitions, Internationalization and Engineering Competence as growth drivers. Schmidt: “EMPOWERING MITTELSTAND maps out our growth path over the next six years. Given the volatile market, we constantly have to respond to new challenges. We therefore need a clear goal we’re committed to and can be measured against.”

Acquisitions: The acquisitions of KETTLER, HBS and ELECTRO TRADING strengthened the portfolio in the first quarter. In the second quarter, precision metal manufacturer METFAB followed as a complementary addition to the Indus Holding subsidiary M.BRAUN. In July 2025, formwork specialist TRIGOSYS expanded the product portfolio of portfolio company BETOMAX.

Internationalization: The acquisitions of METFAB and the HBS subsidiary SUNBELT expand the Group’s production capacities in the United States. In February 2025, Indus Holding announced its first acquisition in Scandinavia with Swedish company ELECTRO TRADING. The existing portfolio companies also expanded their international business: In the first half of the year, FS-BF started its US production under the AURORA umbrella. HORNGROUP has established a new distribution company for North America. Preparations for HAUFF-TECHNIK’s start of production in the United States are proceeding as planned.

Engineering Competence: More intensive cooperation among the portfolio companies in technology fields is strengthening the technological expertise of the SME Group. For example, vibration testing specialist M+P was integrated into measurement and testing technology expert IPETRONIK to better leverage synergies and enter new markets together. HORNGROUP and GSR are intensifying their strategic cooperation in the field of flow technology, particularly in new international markets. Indus Holding has also established a venture clienting program that supports companies in partnering with technology start-ups for innovations.

Noticeable upturn in the Engineering segment in Q2: Revenue and earnings at the previous year’s level

Against a weak market environment, revenue (EUR 136.5 million) and adjusted EBITA (EUR 9.5 million) in the Engineering segment in the second quarter of 2025 matched the prior year (EUR 136.7 million and EUR 9.4 million, respectively). Revenue for the first six months totaled EUR 259.7 million (previous year: EUR 266.1 million), while segment earnings (adjusted EBITA) came in at EUR 15.9 million (previous year: EUR 19.6 million).

Axel Meyer, COO Engineering : “The market is picking up, though more slowly than anticipated and not in all sub-sectors. Based on the current order backlog, we expect business activities to gradually recover further over the course of the year – with a strong fourth quarter. Increasing by 25%, incoming orders performed very well, particularly through new orders in long-term plant engineering. That’s a strong signal.” For the full year, Indus Holding continues to expect a slight increase in revenue and now forecasts segment earnings consistent with the previous year’s level. In addition to HBS and its US subsidiary SUNBELT, Indus Holding strengthened its Engineering segment through the acquisition of METFAB, also based in the United States, in the first half of the year.

Infrastructure segment: Revenue increase in a weak market

The portfolio companies in the Infrastructure segment grew their revenue to EUR 292.1 million (previous year: EUR 276.8 million). Incoming orders ticked up to EUR 285.2 million (previous year: EUR 282.9 million). Segment earnings (adjusted EBITA) came in at EUR 26.5 million (previous year: EUR 32.6 million). “The construction industry continues to face weak demand, especially in residential construction. Our portfolio companies performed well in this environment,” says Dr. Jörn Großmann, COO Infrastructure. “Pricing pressure and higher costs are weighing on segment earnings. However, a solid outlook is making our companies optimistic.” For the full year as, Indus Holding continues to expect a moderate increase in both revenue and segment earnings. KETTLER and ELECTRO TRADING were acquired for the segment during the reporting period, and TRIGOSYS has been strengthening the portfolio company BETOMAX since July.

Improved supply situation for tungsten carbide in the Materials Solutions segment

Revenue in the Materials Solutions segment came to EUR 284.4 million (previous year: EUR 295.8 million). Revenue of the former portfolio company IMECO is no longer included in the current year. Adjusted for this effect, revenue almost reached the previous year’s level. Segment earnings (adjusted EBITA) were EUR 23.1 million (previous year: EUR 29.0 million). Incoming orders edged up to EUR 285.5 million (previous year: EUR 280.8 million); excluding IMECO from the previous year’s figure, incoming orders rose 4.7%. Gudrun Degenhart, COO Materials Solutions: “Our segment companies faced the effects of protectionist trade policies in the first half of 2025. The US tariffs has a negative impact on several portfolio companies. It’s all the more encouraging that BETEK was able to significantly cushion the impact of the export controls on tungsten carbide introduced by China by taking extensive measures.” In light of the improved supply situation, Indus Holding has raised its revenue and earnings expectations for the segment: The Board of Management now projects only a slight decline in revenue and a less pronounced drop in segment earnings for the year as a whole.

Guidance for 2025 confirmed

For the full year 2025, Indus Holding continues to expect revenue between EUR 1.70 billion and EUR 1.85 billion and earnings (adjusted EBITA) between EUR 130 million and EUR 165 million. The adjusted EBITA margin is anticipated to remain in the 7.5% to 9% range. The free cash flow forecast remains unchanged at over EUR 90 million.

The full interim report can be found here.

About Indus Holding
At Indus Holding , we have been generating sustained growth from a diversified portfolio of Mittelstand companies since 1989. We focus on acquiring family-owned businesses with special engineering capabilities and grow them internationally. To expand their business, we ensure that our managers act like true entrepreneurs. They can count on our reliable perspective as a long-term investor. Rooted in the German-speaking Mittelstand, Indus Holding today fully owns and successfully leads more than 40 companies with activities around the world. Listed on the Frankfurt Stock Exchange (SDAX) since 1995, we have established a unique bridge between the SME sector and the capital market. For more information, visit www.indus.eu.

Note:
This press release contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of Indus Holding AG and comprise known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Indus Holding AG assumes no obligation to update forward-looking statements.

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