Whilst the recent ruling by the US Supreme Court has temporarily invalidated the sweeping tariffs previously imposed by US President, Donald Trump, key print industry suppliers still predict ‘massive economic headwinds’ ahead, notwithstanding the inevitable impact the recent instability in the Middle East will cause.
For the time being at least, the effective US tariff rate is expected to drop from about 17% to roughly 9%, effectively again evening the playing field to accommodate the previous healthy competition that existed prior to Trump’s substantive tariff hikes. That said, the inevitable impact that the recent US-Israeli-Iran conflict will have on the global supply chain and fuel prices, is difficult to predict, especially if the situation continues to escalate.
In spite of this background, both Koenig & Bauer and HP have recently recorded strong fiscal results and are both predicting a positive year ahead.
German press manufacturer, Koenig & Bauer has hit its 2025 targets, more than doubling operating EBIT to €36.6m (AUD$60.34m) on slightly higher group sales of just over €1.3bn. EBIT improved significantly by €66.4m to €31.3m, compared with the prior year’s €35.1m loss. Under its new simplified reporting structure of two divisions, the Special & New Technologies arm grew sales by 6.8% to €596m, while the sheetfed-focused Paper & Packaging segment edged up 0.9% to €741.5m, with order intake in P&P remaining robust after a strong Drupa year.
Dr Stephen Kimmich, Koenig & Bauer CEO, hailed the gains as proof of the firm’s ‘Spotlight’ programme’s impact on efficiency, saying that: ““Despite massive macroeconomic headwinds, we met our forecast and closed the year with a positive free cash flow. The 2025 results demonstrate the effectiveness of our measures to increase efficiency and thus mark a step forward in our operating profitability.”
Meanwhile, HP announced fiscal 2026 first quarter net revenue of USD$14.4bn (AUD$20.3bn), up 6.9% from the prior-year period, which Interim CEO, Bruce Broussard, says: “Reflects the strength of our portfolio and our disciplined execution of our Future of Work strategy, even as we navigate industry-wide headwinds.”
Karen Parkhill, CFO, HP Inc., adds: “We are pleased with our execution in Q1, driving better than expected revenue growth and non-GAAP EPS above consensus. But with just one quarter behind us in a dynamic environment marked by increasing memory costs, we are holding our outlook for the year but currently anticipate results to be closer to the low end of our range. We are well practised at managing through headwinds and remain focused on executing our mitigation plans.”
Looking ahead, whilst Koenig & Bauer expects stable trading, it predicts ‘a volatile backdrop’, and is shifting guidance to operating EBITDA in line with IFRS 18, pegging the new metric at around €80m on flat revenues. Kimmich adds: “Assuming that prompt clarity on import tariffs is reached based on recent US jurisprudence, enabling customers to make their investment decisions without trade-related uncertainty, the executive board forecasts operating EBITDA of approximately €80m for 2026.”
