Herma holds steady in 2025, eyes modest growth for 2026

Herma has reported relatively stable performance in 2025, limiting its sales decline to 1.2% despite continued economic headwinds, with growth driven primarily by its international business.

The Germany-based manufacturer generated €447.0 million in Group sales, down slightly from €452.6 million in 2024. Export activity once again proved critical, with international sales increasing modestly and the company’s export ratio rising to 65.8 percent.

Against a backdrop of stagnation in the German economy and broader market uncertainty, Herma’s diversified structure helped offset pressure in key segments. The company’s Labels and Labelling Machines divisions both posted growth, while its Self-adhesive Materials business declined amid intensifying competition and ongoing price erosion in Europe.

The Labelling Machines division delivered the strongest performance, with sales increasing 8.5 percent, outperforming a mechanical engineering sector that saw an overall production decline. Herma attributed this growth to its expansion into more stable market segments and its ability to capitalize on demand across a range of industries.

Meanwhile, the Labels division achieved slight growth of 0.3%, supported by gains in logistics and chemicals applications, as well as continued demand in select retail channels.

“Diversification and the internationalization of our activities remain key pillars,” says managing directors Guido Spachtholz and Oguzhan Celil, noting that the company’s broad positioning across multiple technology areas helped stabilize performance during a challenging year.

Looking ahead, HERMA expects low single-digit sales growth in 2026, although profitability will likely remain under pressure due to ongoing competitive dynamics. The company continues to focus on efficiency measures and long-term workforce development, increasing its total employee count and expanding its apprenticeship program.