Printing technology reminiscent of Rheinmetall Arms Company?
In a strategic move, Heidelberg Druckmaschinen AG (HEIDELBERG) has announced its entry into the defense market through a long-term partnership with Vincorion Advanced Systems GmbH. This collaboration, which originates from a military technology division, aims to boost Europe's technological sovereignty and strengthen security of supply in the defense sector over several years.
The partnership, marked by a multi-year Memorandum of Understanding (MOU), sees HEIDELBERG taking on the role of developing and manufacturing power control and distribution systems. Leveraging its capabilities in hardware & software development, electronic component manufacturing, machining, foundry technology, and assembly of complex systems, the company plans to bring a first solution to the market soon for high-performance charging.
CEO Jürgen Otto has highlighted that this partnership is a significant milestone for HEIDELBERG, as it positions the company as a reliable partner in security-relevant areas and enhances technological independence and a stronger industrial base in Germany and Europe. The company expects to generate at least €100 million in revenue from the defense sector within the next three years, tapping into this growing market with high margins connected to Europe's push for greater defense autonomy.
In a broader context, this move aligns with a trend of German engineering firms shifting towards military production amidst trade tensions and policy drives for economic restructuring geared towards defense. Notably, HEIDELBERG's defense share is considered to be more volatile than at the start of the Turnaround Formula AKTIONÄR TFA.
On the financial front, the adjusted EBITDA margin of HEIDELBERG is expected to grow to up to around eight percent. The company also anticipates saving 100 million euros in wage costs and expects new growth fields to "quickly deliver tangible results".
Meanwhile, in the packaging segment, HEIDELBERG has seen a 15% increase in order intake in the latest quarter. The company is also focusing on the competitive market for E-vehicle charging stations, offering digital printing technology in partnership with Canon. Robots for further processing are also on the table.
In addition, HEIDELBERG Druckmaschinen AG has seen a 77% rise since February, with a further double-digit increase on Tuesday. The company is currently in talks for production and assembly of certain components, as well as development cooperations, in the defense sector.
Further details, signals, and transactions related to the "Depot 2030" are available for subscription. On the other hand, Heidelberg Druckmaschinen AG has gained over 500 percent in the TFA portfolio, and Rheinmetall had already delivered a TFA in 2022 and has since risen over 1,000 percent.
Sources: [1] Reuters [2] Heidelberg Druckmaschinen AG Press Release [3] Bloomberg [5] Handelsblatt Global
In a separate development, AlzChem (WKN: A2YNT3) has seen a significant growth in the TFA portfolio, with a gain of over 500 percent. Meanwhile, Siemens Energy is benefiting from the energy hunger of US hyperscalers due to the massive growth of AI, as presented in a new report for Depot 2030. However, further details, signals, and transactions are available for subscription.
- In line with the trend of German engineering firms diversifying into military production, Heidelberg Druckmaschien AG (HEIDELBERG), traditionally known for its packaging segment, has entered the defense market, anticipating €100 million in revenue within the next three years.
- Leveraging its expertise in technology, finance, and investing, HEIDELBERG intends to develop and manufacture power control and distribution systems in this new sector, positioning itself as a reliable player in the growing market of defense technology.
