Rieter strengthened its position in the global textile machinery industry during the first half of 2026 by completing the largest acquisition in its history, while reaffirming its full-year financial outlook despite reporting a temporary loss amid integration and restructuring costs.
The Rieter H1 2026 results were largely shaped by the acquisition of Barmag, completed on 2 February 2026, which established the company’s new Man-Made Fiber Division. The transaction marks Rieter’s entry into the fast-growing man-made fibre market and significantly enhances its presence across Asia. Following the acquisition, the company now positions itself as the world’s largest system supplier for processing both natural and man-made fibres.
The integration has already begun generating operational benefits. During the first half of the year, Rieter achieved initial savings in material procurement and operating expenses, while forecasting total synergies of at least CHF20 million by the end of the 2028 financial year. Since the acquisition closed in early February, financial contributions from the Man-Made Fiber Division cover only five months of the reporting period.
Recycling partnership supports circular textile goals
Alongside expanding its product portfolio, Rieter also strengthened its sustainability strategy by forming a strategic partnership with Recycling Powerhouse in June 2026.
The collaboration aims to accelerate the industrialisation and large-scale adoption of textile recycling technologies. Under the agreement, Rieter will contribute its expertise in textile waste tearing and short-fibre spinning to support the development of scalable recycling systems that promote circularity across the global textile industry.
The company believes increasing textile waste volumes and rising demand for sustainable products are creating significant opportunities for advanced recycling technologies and circular manufacturing solutions.
Orders surge after acquisition
The Rieter H1 2026 results showed strong momentum in new business, with order intake rising sharply during the first six months of the year.
Orders reached CHF554.1 million, representing an increase of approximately 56% compared with CHF355.4 million recorded during the same period in 2025. The newly acquired Man-Made Fiber Division contributed CHF261.3 million in new orders, accounting for a significant share of the growth.
The company also reported encouraging early signs of market improvement, particularly in India and within its Components & Technology Division. Demand for consumables, replacement parts and maintenance products increased by 3%, indicating higher capacity utilisation at spinning mills and suggesting renewed investment activity may follow.
Revenue climbs but profitability remains under pressure
Group sales increased 72% year on year to CHF576.7 million, compared with CHF336.2 million in the first half of 2025. The growth primarily reflects the first-time consolidation of Barmag within the group’s financial results.
At the end of June, Rieter’s order backlog stood at approximately CHF760 million, significantly above the CHF510 million recorded a year earlier, providing improved revenue visibility for the months ahead.
Despite stronger revenue, profitability remained under pressure during the reporting period. Operating EBIT, excluding restructuring expenses, acquisition-related transaction costs and purchase price allocation effects, amounted to negative CHF6.3 million. The company attributed the result to relatively low sales volumes against its fixed operating cost base and expects improved earnings as revenue increases during the second half of the year.
Rieter reported a net loss of CHF54.9 million, compared with a loss of CHF20 million in the corresponding period of 2025. The wider loss reflected lower operating profitability, higher financing costs and accounting impacts associated with the acquisition.
Free cash flow also remained negative at CHF96.3 million, mainly because of the net loss and increased working capital requirements linked to orders scheduled for delivery later this year.
Full-year guidance maintained
Although 2026 remains a transition year following the Barmag acquisition, Rieter has maintained its financial outlook.
The company continues to forecast full-year sales between CHF1.3 billion and CHF1.5 billion, while expecting a positive operating EBIT margin ranging from 0% to 3%.
Management said the outlook reflects the continued integration of Barmag alongside restructuring measures announced in 2025, which are still being implemented. As synergies increase and market conditions improve, Rieter expects stronger performance during the second half of 2026.
