Heidelberg has extended contracts for CEO Jurgen Otto and sales and technology director David Schmedding, an endorsement that these are the right people to lead the business even as it warns that the global uncertainty threatens its financial performance.
Otto, who is 61 years old, will have his contract extended from 1 July this year until 31 July 2029 when he reaches retirement age. Schmedding is currently 46 and his new contract extends until 30 June 2031. Both joined the executive board on 1 July 2024, ending a period of relative instability at the head of the business while it grappled with reorganisation and a way to financial stability.
This has been upset by the Iran war, leading Heidelberg to state that “investment demand weakened sharply” as a result. The war broke out with one month of the financial year let to run.
The result has been further dampened by investments in activities beyond the core printing business (such as drone production for Israeli company Ondas Autonomous Systems which is beginning at the Brandenburg factory) which are yet to drive sales and “a product mix that was weaker year over year”.
While the results have still be to published, the company says that there will be a “deviation” in operating earnings compared to projections made at the start of the financial year. At that point it had expected to report an Ebitda margin of 6.6%. “The magnitude of this deviation increased sharply, particularly in March 2026” it says.
The company’s shares rose from €1.38 each on Monday last week as the new contracts were announced to €1.75 ahead of the financial news on Wednesday, dropping to €1.56 the next day before finishing the week at €1.61.
On announcing the new contracts, both directors were upbeat. “In recent years, we have strategically repositioned Heidelberg and taken important steps toward becoming a diversified high tech company that better leverages its potential for existing and new customers. We will continue on this path with consistency, speed, and a clear focus on results,” says Otto.
