TCF POST Report
The Rieter Group’s first half of 2026 has been defined by a major structural shift through the acquisition of Barmag, now operating as the Man-Made Fiber (MMF) Division. This move is central to the company’s strategy to enter the growth segment of man-made fibers and strengthen its market presence in Asia.
“The Man-Made Fiber Division enables entry into the growth segment of man-made fibers and sustainably strengthens Rieter’s market position in the Asia region. The expanded Group is now the world’s leading system supplier for the processing of natural and man-made fibers,” noted Thomas Oetterli, Chairman of the Board of Directors and Chief Executive Officer.
MMF Division: Revitalizing Growth
The consolidation of the MMF Division (acquired February 2, 2026) has significantly impacted Rieter’s financial profile, acting as a key driver for expansion:
- Strategic Rationale: Chairman and CEO Thomas Oetterli noted that the division “enables entry into the growth segment of man-made fibers and sustainably strengthens Rieter’s market position in the Asia region”.
- Operational Synergy: The expanded group is now positioned as “the world’s leading system supplier for the processing of natural and man-made fibers”.
- Performance Metrics: In its first five months of operation, the MMF Division contributed CHF 292.7 million in sales and CHF 19.7 million in operating EBIT, representing an operating EBIT margin of 6.7%.
Short-Staple Fiber (SSF) Business: Challenges Remain
The Short-Staple Fiber (SSF) Division is currently facing a difficult environment, as indicated by recent performance metrics:
- Financial Pressure: SSF sales fell to CHF 190.2 million in H1 2026, down from CHF 222.3 million in H1 2025. Order intake also saw a decrease, dropping to CHF 193.8 million from CHF 259.7 million in the prior-year period.
- Profitability: The division reported an operating EBIT of CHF -37.8 million, deepening from the CHF -22.5 million loss recorded in the same period last year.
- Early Recovery Indicators: Despite these challenges, Rieter noted that “the first signs of a market recovery are emerging in the India region and the Components & Technology Division”. Management highlighted that “the demand for consumables, wear & tear and spare parts has increased by 3%,” which serves as an “early indicator [that] suggests a positive development in the capacity utilization of spinning mills”.
Order Intake and Backlog
- Order Intake: In the first half of 2026, Rieter recorded an order intake of CHF 554.1 million (H1 2025: CHF 355.4 million). This represents a 56% increase compared to the previous year, mainly attributable to the first-time consolidation of Barmag, which contributed CHF 261.3 million to the order intake.
- Order Backlog: As at June 30, 2026, the company had an order backlog of around CHF 760 million, compared to CHF 510 million in the first half of 2025.
Rieter’s Business in Asia
The Asia-Pacific region remains a cornerstone of Rieter’s growth strategy, further bolstered by the Barmag acquisition.
- Strategic Access: The acquisition specifically enhances Rieter’s position in the Asia-Pacific region, providing access to Barmag’s extensive filament expertise, which will “help to further scale Rieter’s own capabilities and improve digitization solutions and product sustainability”.
- Regional Performance: The MMF Division contributed significantly to the region’s total sales in H1 2026. For example, Rieter recorded CHF 208.0 million in MMF sales in China alone, contributing to a total of CHF 350.3 million in sales in China across all segments.
Whole Year Sales Outlook
The Rieter CEO terms 2026 a year of transition, and he expects sales in the range of CHF 1.3 to CHF 1.5 billion.