Heraeus Overview
Heraeus is a family-owned German technology group that turns materials science into positions in precious metals, medical technology, semiconductor and electronics materials, and industrial measurement. Its headline revenue of EUR 43.2 billion in FY2025 is dominated by pass-through precious metal trading, so management steers the business on revenue excluding precious metals of EUR 2.83 billion, which places it among mid-sized specialty materials groups. Within the semiconductor supply chain it supplies packaging materials such as bonding wire, solder and sinter pastes, high-purity quartz and ceramic components for fab equipment, conductive polymers, and precious metal recycling and refining that returns metal from electronics and semiconductor scrap. Its strategic strengths are a low-leverage balance sheet, long-term family ownership and a position across the entire precious metal cycle. Its central challenge is restoring trust after customer-detrimental irregularities at its Hanau recycling operation, which remain under criminal investigation.
In its FY2025 Financial Report, Heraeus describes itself as "a family-owned global technology group headquartered in Hanau", with roots in a family pharmacy dating to 1660 and a position as one of the leading providers in its global sales markets. These markets include electronics, semiconductors, telecommunications, automotive, chemicals, medical technology, pharmaceuticals and steel. Activities are bundled in four Business Areas: Precious Metals, Healthcare, Semiconductor & Electronics, and Industrials. Heraeus Holding sets overarching strategy, and "preserving the long-term independence of the Group" has priority in all corporate decisions.
Independently characterized, Heraeus is two businesses reported as one. The first is a high-volume, low-margin metal flow: trading, hedging, leasing, refining and recycling, where revenue moves with metal prices and volatility. Group revenue rose 46.9% in FY2025 mainly for this reason. The second is a portfolio of specialty franchises with strong technical barriers: bone cement, contract manufacturing of medical components, quartz glass, electronic materials and steel sensors. Metal revenue is why the Group's EBIT margin on total revenue (about 1%) carries no information. The margin on revenue excluding precious metals, 15.8% in FY2025, is the meaningful measure.
The revenue model is overwhelmingly product-based, with service-like income in precious metals. Recycling revenue is recognized over time until the customer is reimbursed for its metal, and it includes non-cash consideration: reclaimed metal that remains with Heraeus after agreed quantities are returned. That consideration was EUR 178.1 million in FY2025 and is the largest single explanation for the Precious Metals revenue jump. Heraeus does not disclose subscription or licensing revenue, and the FY2025 report says total service proceeds within revenue are insignificant.
Value-chain position: Characterization: Mid-chain: buys processed metals and chemicals, sells semi-finished materials and components to OEMs and Tier 1 suppliers; in precious metals it spans refining, trading, processing and recycling
Customer types: Characterization: Mining houses, refiners, banks and investors; chemical and pharmaceutical producers; semiconductor device, packaging and equipment makers; fiber manufacturers and hyperscalers; hospitals and medical OEMs; steel and foundry producers
End-markets: Characterization: Electronics, semiconductors, telecommunications and AI data centers, automotive, chemicals, hydrogen, aerospace propulsion, pharmaceuticals, medical technology, steel, luxury and investment metals
Precious metals value-chain stages: Characterization: Six stages: raw material extraction, refining, trading and administration, processing, use phase, recycling; Heraeus operates in four of them
Revenue types: Characterization: Metal trading and metal-bearing product revenue; revenue excluding precious metals from products and services; recycling fees and non-cash metal consideration
Semiconductor exposure sits mainly in Semiconductor & Electronics (EUR 793.6 million revenue excluding precious metals in FY2025), through Heraeus Electronics, Heraeus Covantics, Heraeus Epurio and Heraeus Printed Electronics, with a second leg in Precious Metals through probing alloys and recycling. In the recycling market, the company takes in precious-metal-bearing materials from electronics, including powders, pastes and production residues from sectors such as LEDs, photovoltaics and passive components. It operates 12 recycling facilities in eight countries, including associated companies.
Strategy
The Heraeus Vision published with the FY2024 report sets the framing. Its identity statement reads: "We are a family-owned, global technology company. With responsible leadership and technology we enable sustainable transformation towards a healthy planet and society." Its priorities are:
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value creation through the success of Operating Companies, with market leadership, customer focus, innovation, excellence, digitalization and scalability as levers
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growth and resilience through entrepreneurial investments, partnerships and deep understanding of technologies
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people, with integrity, leadership, talent development and performance culture
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commitment to sustainability and responsibility
The claim is "Materials. Innovations. For Generations."
In FY2025 management developed a concrete target picture for Heraeus in 2030, with strategic guidelines and fields of action: succeed with strong Operating Companies on shared principles, strengthen innovation as the central growth driver, and use technologies such as artificial intelligence deliberately. No numeric 2030 financial targets are public.
Governance reset: Date: 2025; Content: Business Area heads on the Board; GELT replaces GMC
Compliance overhaul: Date: 2025–2026; Content: Integrity Office reports to CEO with independent right to present to the Supervisory Board; Legal and Compliance separated; Group Compliance Committee; integrity initiative
Heraeus Innovation System: Date: 2025; Content: Group framework for promoting and steering innovation; expert career paths
Listening Tour: Date: 2025; Content: CEO dialogue with staff; engagement surveys with comparable questions
Top 100 leadership program: Date: 2025; Content: Inclusive leadership and speak-up culture
Portfolio pruning: Date: 2025–2026; Content: Exits from solar pastes, BASF JV, aiXscale, Remloy, semiconductor chemicals, B2C retail
Precious metals reorganization: Date: July 2026; Content: Separate Operating Companies for industrial business and for luxury and investment
Hollow core fiber industrialization: Date: 2025 onward; Content: Heraeus Covantics plans about 100 times more fibers a year for Microsoft than the current market offers, and expects triple-digit million euro sales over three years
Group AI and Digital Office: Date: July 2026; Content: Group AI Officer Sarah Lewandowski, reporting to the Chief Transformation Officer
Hanau Infra Upgrade: Date: Ongoing; Content: Investments over EUR 50 million in staged heat and grid renewal, saving more than 4,000 tCO2 a year
Climate targets: Date: Ongoing; Content: 42% Scope 1 and 2 cut by 2030; 37.5% Scope 3 cut by 2035; 50% renewable electricity by 2030
The strategic direction is simplification. Since 2023 Heraeus has sold businesses that were either subscale, volume-driven or lacking an owner advantage, while buying small, complementary technology. Large M&A has not recurred since Norwood. The new CEO's background in Zeiss and electronics fits a more technology-led, operating-company-driven model, while the immediate management load remains compliance and integrity.
Products & Services
Pricing is not publicly disclosed for any industrial product line. Precious-metal-bearing products are typically priced as a metal value plus a fabrication charge, and recycling is priced through fees and contractual metal return terms.
Precious Metals
Healthcare
Semiconductor & Electronics
Industrials
Product Portfolio
| Offering | Description | Target customer | Notes |
|---|---|---|---|
Precious metal trading | Physical and derivative trading from Hanau, New York, Hong Kong and Shanghai, plus Mendrisio; leasing and hedging | Industrial users, banks, miners | Metal on loan from third parties EUR 3,583.0M at end-2025 |
PGM recycling and refining | Recovery from spent catalysts, electronics scrap and production waste; wet chemical and pyrometallurgical routes | Chemical, automotive, glass, electronics customers | 12 facilities in eight countries including associates; expansion at Santa Fe Springs and Hanau in 2025 |
Circlear | Products from 100% recycled precious metals; TÜV SÜD verified on a mass-balance basis for seven metals | Customers seeking low-carbon metals | Launched April 2024 |
Catalysts | Chemical process catalysts, aniline catalysts, catalytic gauzes | Chemical producers | Higher aniline volumes forecast for 2026 |
Space propulsion catalysts | Catalysts for space propellants | Aerospace | Named growth item in the 2026 outlook |
Hydrogen Systems | Iridium-based catalysts and materials for electrolysis | Electrolyzer makers | Capacity expansion under way |
PGM Fabrications | Bushings and related fabricated parts | Glass fiber and glass producers | High demand forecast for 2026 |
Probing alloys | Special precious metal alloys for semiconductor wafer testing | Probe card makers | Named demand driver for 2026 |
Pharmaceutical ingredients | Platinum-based APIs for oncology; business outside South America acquired from Umicore in 2025 | Pharma | Contract development and manufacturing activities |
Precious colors and coatings | Decorative and functional metal preparations | Ceramics, glass, luxury | Long-standing line since the 1890s |
AGXX | Antimicrobial surface technology using oxygen and moisture, without releasing active ingredients | Textiles, filters | Partnerships being pursued internationally |
Iridium recovery from MMO electrodes | McCol Metals process | Electrochemical industry | Acquired 2024 |
Investment bars, coins, luxury semi-finished goods | Argor-Heraeus, Mendrisio | Banks, watchmakers, jewelers | New minted bar design in 2026 |
Direct retail (Goldstore, heraeus-gold.de, scrap purchase) | Consumer channel | Private customers | Being closed; operations end 30 November 2026 |
| Offering | Description | Target customer | Notes |
|---|---|---|---|
PALACOS bone cements | Antibiotic-loaded and plain PMMA bone cements | Orthopedic surgeons, hospitals | Heraeus reported as supplying about 82% of the UK market |
COPAL bone cements | Dual-antibiotic cement line | Revision surgery, infection management | Affected by the 2026 packaging issue |
Calcium phosphate bone substitutes | INNOTERE range | Orthopedics | Acquired January 2025 |
Synthecure | Pure calcium sulfate bone substitute | Orthopedics | Acquired June 2025 |
Heraeus Medevio components | Precious metal and other components, cables, catheters, delivery systems, neuromodulation, cardiac | Medical OEMs | Sites in Germany, USA, Costa Rica, Puerto Rico, Czech Republic, Singapore |
Norwood Medical | Precision instruments and components for minimally invasive, orthopedic and robot-assisted surgery | Medical OEMs | About 1,200 employees; 100th anniversary 2026 |
MO-SCI | Specialty and bioactive glass particles, medical and industrial glass, nuclear vitrification and refinery glass | OEMs, research, industry | Bekeson Glass capabilities added June 2025 |
Engineered Tissue Solutions | Bioactive glass wound care | Wound care providers | US-based |
| Offering | Description | Target customer | Notes |
|---|---|---|---|
Bonding wires | Gold, silver and copper-based wires | Semiconductor packaging | China activities via Heraeus Zhaoyuan JV-type entities |
Solder pastes | Fine-pitch and LED solder pastes | Electronics assembly | R&D focus in 2025 |
mAgic PE340 and PE360 sinter pastes | Silver pressure sinter; PE360 offers at least 200 W/mK and SiC module attach above 150°C | Power modules, automotive | PE360 received a 2025 Global Technology Award; PE340 marked new at PCIM 2026 |
Microbond solder preforms | Module attach preforms using Innolot alloy; Innolot 2.0 reduces silver content | IGBT modules up to 150°C junction | Marked new at PCIM 2026 |
Die Top System (DTS) | Integrated die-top material system; company claims tenfold power cycling capability | Power electronics | New materials shown 2025 |
Metal ceramic substrates | Substrates for power electronics | Power modules | Ongoing R&D |
Thermal interface materials | TIM for electronics | Data center, power | R&D focus |
Heating elements | Non-precious metal thick-film heaters | Appliances, industry | R&D focus |
High-purity quartz and fused silica | Tubes, rods, plates, cylinders; process tubes and components for fab equipment | Semiconductor equipment makers | Heraeus Covantics; Smart Plates semi-finished line launched 2025 |
Lithography quartz | Quartz for optical and EUV applications | Lithography supply chain | Weak EUV demand in 2025; EUR 25.0M impairment |
Ceramic components | Technical ceramics for chip manufacture | Equipment makers | Named growth opportunity |
Telecom fiber materials | Synthetic cylinders and tubes for preforms | Fiber makers | Demand driven by AI data centers in the USA |
Hollow Core Fiber | Air-core optical fiber; up to 47% faster than solid fiber per the Group's description | Microsoft and hyperscale networks | Scaling in Europe and the USA |
Multicore fibers and specialty fibers | Next-generation preforms and fibers | Data center, medical, laser | R&D focus |
Clevios | Conductive polymers (Heraeus Epurio) | Capacitors, displays, sensors | Epurio exceeded EUR 100M revenue for the first time |
Semiconductor chemicals | Photoacid generators, photo-initiators, monomers | Photoresist makers | Sold to Brewer Science, August 2026 |
Prexonics, PriElex and related | Selective metallization and thick film (Heraeus Printed Electronics) | Semiconductor packaging | PriElex line acquired from Kayaku Advanced Materials, 2024 |
| Offering | Description | Target customer | Notes |
|---|---|---|---|
Temperature, oxygen and sample probes | Disposable sensors for molten steel, iron and aluminum | Steel mills, foundries | Core franchise of Heraeus Electro-Nite |
Automated measurement systems | Robotic and non-contact measurement | Steel mills | 7 Steel UK project saves over 150 work hours a year and raises yield by 5% |
Falcon | Oxygen measurement inside electric arc furnaces | EAF steelmakers | Featured innovation in 2026 |
Smart Steel Technologies | AI-based process optimization | Steel producers | Minority stake (46.55%), written down in FY2025 |
Financial Narrative
All figures are from the Heraeus Financial Reports FY2021 to FY2025, on the latest restated basis. Heraeus is a GmbH and does not publish earnings per share or dividends per share.
Two restatements apply. FY2022 was restated for a change to FIFO for trading inventories. Profit after tax was originally reported as EUR 499.4 million. FY2023 was restated for the recycling irregularities. Profit after tax was originally reported as EUR 444.2 million, and year-end equity as EUR 4,681.0 million.
Income statement
Revenue excluding precious metals compounded at 5.6% a year from FY2021 to FY2025, and total revenue at 10.0%. The compound figure flatters organic momentum: the FY2021 base predates Norwood Medical, and portfolio disposals then removed revenue in 2023 and 2025. Revenue excluding precious metals peaked at EUR 2,899.8 million in FY2022, and FY2025 remains below that level.
Profitability fell sharply after FY2022. The FY2022 peak benefited from strong metal prices and EUR 137.5 million of income from the Zimmer Biomet settlement. FY2023 included EUR 111.6 million of disposal income. FY2024 carried a EUR 50.1 million goodwill impairment on Norwood Medical and weaker PGM prices. FY2025's recovery is low quality. EBIT includes EUR 178.1 million of non-cash consideration and EUR 157.8 million of provision reversals, offset by EUR 80.3 million of impairments and EUR 76.9 million of write-downs on revalyu and Smart Steel Technologies. Management states that, without the special effects, FY2025 earnings would have declined and the forecast would have been missed.
Balance sheet
Net debt is financial debt, including leases, less cash and time deposits. It excludes pensions of EUR 303.7 million and metal on loan from third parties, which is not recognized on the balance sheet and reached EUR 3,583.0 million at end-2025, up from EUR 2,316.0 million. The metal lease line matters: it is a funding source that is off balance sheet and repriced sharply when lease rates spiked in 2025.
The equity decline in FY2025 reflects EUR 281.3 million of negative currency translation, chiefly the weaker US dollar, which outweighed the year's profit. The equity ratio was 56.7%, against 59.5% a year earlier.
Cash flow
Free cash flow is operating cash flow less capital expenditure. FY2025 operating cash flow more than halved, because inventories absorbed EUR 348.6 million at high metal prices, receivables absorbed EUR 146.2 million, and provisions and pensions fell by EUR 167.0 million, mostly through customer compensation and reversals. The non-cash metal consideration boosts earnings without producing cash, which further widens the gap. The dividend paid to shareholders of Heraeus Holding fell from EUR 143.7 million, which included a special distribution following the 2024 Heraeus Share Days, to EUR 40.1 million. Capital expenditure fell 31.9%, and order commitments dropped to EUR 43.7 million from EUR 81.6 million, which suggests the investment cycle has passed its peak. Treasury share purchases are negligible (EUR 1.8 million in FY2024, none in FY2025).
Ratios
ROIC is EBIT after the effective tax rate, divided by equity plus financial debt less cash and time deposits. The cash conversion cycle uses total revenue and materials cost, including precious metals, so it reflects the trading flow more than the specialty businesses. Solvency remains very strong, but returns have fallen to about 7% from about 12% and interest cover has weakened as metal-related finance costs rose. The effective tax rate rose to 32.7% from 24.6% in FY2025.
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View Subscription PlansFinancial Detail
Business Area Details
| Business Area | Operating Companies | Content |
|---|---|---|
Precious Metals | Heraeus Precious Metals (industrial products, recycling, trading); Argor-Heraeus (luxury, investment) | Trading, refining, recycling, catalysts, hydrogen, pharma ingredients, bars and coins |
Healthcare | Heraeus Medical; Heraeus Medevio; Norwood Medical; MO-SCI; Engineered Tissue Solutions (ETS) | Bone cement and biomaterials; medical components and contract manufacturing; specialty glass; wound care |
Semiconductor & Electronics | Heraeus Electronics; Heraeus Covantics; Heraeus Epurio; Heraeus Printed Electronics | Assembly and packaging materials; quartz, fused silica and ceramics; conductive polymers; selective metallization |
Industrials | Heraeus Electro-Nite | Measurement sensors and systems for molten metal |
Start-ups and holdings | Heraeus Amloy; revalyu (majority holding, equity accounted); Smart Steel Technologies (minority) | Amorphous metals; PET recycling; AI for steel |
Revenue excl. precious metals (EUR Mn)
| Revenue excl. precious metals (EUR Mn) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Precious Metals | 444.3 | 448.8 | 417.2 | 575.6 |
Healthcare | 802.6 | 880.1 | 901.2 | 899.9 |
Semiconductor & Electronics | 780.1 | 740.6 | 792.1 | 793.6 |
Industrials | 868.0 | 790.9 | 591.7 | 550.1 |
YoY growth (%)
| YoY growth (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Precious Metals | 1.0 | -7.0 | 38.0 |
Healthcare | 9.7 | 2.4 | -0.1 |
Semiconductor & Electronics | -5.1 | 7.0 | 0.2 |
Industrials | -8.9 | -25.2 | -7.0 |
Share of Group revenue excl. precious metals (%)
| Share of Group revenue excl. precious metals (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Precious Metals | 15.7 | 15.4 | 20.3 |
Healthcare | 30.8 | 33.2 | 31.8 |
Semiconductor & Electronics | 25.9 | 29.2 | 28.0 |
Industrials | 27.6 | 21.8 | 19.4 |
Field of activity, revenue excl. precious metals (EUR Mn)
| Field of activity, revenue excl. precious metals (EUR Mn) | FY2021 | FY2022 |
|---|---|---|
Health | 458.4 | 782.1 |
Electronics | 531.3 | 686.6 |
Industrials | 690.2 | 759.2 |
Environmental | 591.8 | 667.1 |
Income Statement
| Metric (EUR Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total revenue | 29,506.4 | 29,082.2 | 25,649.2 | 29,396.9 | 43,193.9 |
Revenue excl. precious metals | 2,272.5 | 2,899.8 | 2,861.9 | 2,711.3 | 2,830.4 |
Gross result (revenue less materials) | 1,972.8 | 2,309.9 | 2,314.8 | 2,160.8 | 2,230.5 |
EBITDA | 714.2 | 956.4 | 797.4 | 600.3 | 759.7 |
EBIT | 523.5 | 695.2 | 571.7 | 319.9 | 446.0 |
Profit before tax | 495.9 | 684.4 | 547.3 | 313.6 | 385.3 |
Profit after tax | 369.3 | 504.6 | 410.8 | 236.5 | 259.2 |
Margin on revenue excl. precious metals (%)
| Margin on revenue excl. precious metals (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross result margin | 86.8 | 79.7 | 80.9 | 79.7 | 78.8 |
EBITDA margin | 31.4 | 33.0 | 27.9 | 22.1 | 26.8 |
EBIT margin | 23.0 | 24.0 | 20.0 | 11.8 | 15.8 |
Net margin | 16.3 | 17.4 | 14.4 | 8.7 | 9.2 |
Balance Sheet
| Metric (EUR Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets | 6,993.5 | 7,152.2 | 7,465.6 | 7,906.2 | 8,156.6 |
Cash and cash equivalents | 649.9 | 934.5 | 1,108.0 | 1,172.7 | 1,151.8 |
Time deposits | 0 | 0 | 128.0 | 90.0 | 48.0 |
Current financial debt | 597.5 | 65.4 | 165.9 | 140.8 | 139.8 |
Non-current financial debt | 182.7 | 674.0 | 689.8 | 695.1 | 694.4 |
Total financial debt | 780.2 | 739.4 | 855.7 | 835.9 | 834.2 |
Net debt (negative = net cash) | 130.3 | -195.1 | -380.3 | -426.8 | -365.6 |
Shareholders' equity | 3,801.4 | 4,541.2 | 4,493.6 | 4,703.1 | 4,621.0 |
Goodwill | 500.4 | 527.4 | 482.8 | 484.6 | 453.9 |
Other intangible assets | 535.0 | 519.4 | 454.3 | 443.3 | 379.9 |
Current assets | 3,970.7 | 4,025.0 | 4,139.0 | 4,443.7 | 5,026.5 |
Current liabilities | 2,265.8 | 1,400.0 | 1,718.3 | 1,997.6 | 2,366.6 |
Working capital | 1,704.9 | 2,625.0 | 2,420.7 | 2,446.1 | 2,659.9 |
Cash Flow
| Metric (EUR Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow | 608 | 692 | 634 | 563 | 257 |
Capital expenditure | 248 | 288 | 360 | 335 | 228 |
Free cash flow | 360 | 404 | 274 | 228 | 29 |
Distributions paid | 46.1 | 45.1 | 112.0 | 150.8 | 46.3 |
Payments for acquisitions | 909.4 | 9.0 | 32.4 | 31.3 | 33.7 |
Interest paid | 42.7 | 49.8 | 49.2 | 50.0 | 97.8 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE on year-end equity (%) | 9.7 | 11.1 | 9.1 | 5.0 | 5.6 |
ROA on year-end assets (%) | 5.3 | 7.1 | 5.5 | 3.0 | 3.2 |
ROIC (%) | 9.9 | 11.8 | 10.4 | 5.6 | 7.1 |
Current ratio (x) | 1.75 | 2.88 | 2.41 | 2.22 | 2.12 |
Debt to equity (x) | 0.21 | 0.16 | 0.19 | 0.18 | 0.18 |
Net debt to EBITDA (x) | 0.18 | -0.20 | -0.48 | -0.71 | -0.48 |
EBIT to interest paid (x) | 12.3 | 14.0 | 11.6 | 6.4 | 4.6 |
Asset turnover on total revenue (x) | 4.22 | 4.07 | 3.44 | 3.72 | 5.30 |
Asset turnover on revenue excl. metals (x) | 0.32 | 0.41 | 0.38 | 0.34 | 0.35 |
Cash conversion cycle (days) | 29.4 | 27.8 | 31.4 | 26.6 | 21.3 |
Share of revenue excl. precious metals (%)
| Share of revenue excl. precious metals (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Germany | 14 | 11 | 11 | 11 | 12 |
Europe excl. Germany | 20 | 21 | 21 | 21 | 22 |
Americas | 26 | 32 | 34 | 34 | 34 |
Asia | 38 | 35 | 32 | 31 | 30 |
Africa and Australia | 2 | 2 | 2 | 3 | 2 |
Dividend paid to shareholders of Heraeus Holding (EUR Mn)
| Dividend paid to shareholders of Heraeus Holding (EUR Mn) | FY2024 | FY2025 |
|---|---|---|
Dividend paid in year | 143.7 | 40.1 |
Capital Instruments
| Instrument | Amount | Coupon | Maturity |
|---|---|---|---|
Heraeus Finance bond | EUR 500.0M | 2.625% | June 2027 |
Registered bond | EUR 50.0M | 3.75% | 2032 |
Registered bond | EUR 50.0M | 3.75% | 2034 |
KfW loan | EUR 0.7M | 0.95% | March 2026 |
Contractual cash flows at 31 December 2025 (EUR Mn) | 2,026 | 2,027 | 2028–2030 |
Bonds | 5.8 | 513.1 | 0 |
Registered bonds | 1.4 | 3.8 | 11.3 |
Liabilities to banks | 128.8 | 4.5 | 24.4 |
Lease liabilities | 19.2 | 15.2 | 27.2 |
Analyst Conclusions
Management guidance for 2026 (FY2025 Financial Report)
Group revenue excl. precious metals: Expectation: Moderate increase
Precious Metals: Expectation: Strong rise, on higher non-cash consideration, propulsion and aniline catalyst volumes, new customers, hydrogen and bushings
Healthcare: Expectation: Slight rise; first-half supply bottleneck
Semiconductor & Electronics: Expectation: Moderate increase; AI strong, autos stagnant, lithography stable, fiber strong
Industrials: Expectation: Slight decline, chiefly currency
EBIT, EBT, profit after tax: Expectation: Strong increase
EBITDA: Expectation: Substantial increase
The portfolio exits of semiconductor chemicals and Remloy will reduce revenue modestly in the second half. There is no consensus estimate because the company is private.
Bull case
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Hollow core fiber becomes a new growth engine. Heraeus expects triple-digit million euro sales over three years, against an S&E base of EUR 793.6 million, and one of the world's largest cloud operators is a committed customer.
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Net cash of EUR 365.6 million, a Baa1 rating and low capital commitments allow Heraeus to absorb the remaining EUR 300.0 million provision and still invest.
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A focused portfolio under a technology-oriented CEO could bring margins back from 15.8% towards the 20%-plus earned through FY2023, particularly as Healthcare recovers and impairments fall away.
Bear case
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Trust is a recycling refiner's product. A negative LBMA outcome, indictments or customer loss would hit the most metal-intensive profit pool, and the investigation's second part is unfinished.
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Underlying earnings are weaker than reported. Management's own statement is that adjusted results missed the forecast, and free cash flow was only EUR 29 million.
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Structural pressure persists. China competes in fiber, quartz, electronics and steel, R&D and patent counts are falling, and EUV-related impairments suggest slower lithography demand.
Key catalysts in the next 12 months
LBMA Incident Review outcome: Timing: Open; Why it matters: Access to Good Delivery market
Prosecutor decisions: Timing: Open; Why it matters: Legal and reputational closure
Completion of second investigation part: Timing: Open; Why it matters: Size of final provision
Sanctions proceedings: Timing: Open; Why it matters: Fine exposure
FY2026 Financial Report: Timing: Mid-2027; Why it matters: Test of earnings recovery and cash conversion
Hollow core fiber ramp: Timing: 2026–2027; Why it matters: Proof of AI growth story
Bond refinancing: Timing: Before June 2027; Why it matters: Funding signal
Goldstore wind-down, HPM permanent leadership: Timing: To Q1 2027; Why it matters: Organizational completion
Decision on SBTi target update: Timing: Open; Why it matters: Climate credibility
Analyst verdict
Heraeus is financially sound but operationally and reputationally in transition. The balance sheet is the kind that only long-term family ownership tends to produce: net cash, an equity ratio of 56.7%, and undrawn facilities. That strength has bought the company time to deal with the most serious crisis in its modern history without external pressure. It should not obscure the deterioration underneath. Return on invested capital has fallen by around five percentage points since FY2022. Free cash flow was negligible in FY2025. The year's profit growth depended on provision reversals and non-cash recycling consideration.
The Hanau affair matters more than its provision suggests. The Precious Metals business is built on customers trusting Heraeus with metal that belongs to them, and the company has conceded that warnings went unheeded. The structural response has been real: a reformed Board, a stronger Integrity Office, a new CFO and Chief Compliance Officer, and a split of the precious metals business. The remedy is still unproven, and three external processes remain open.
For the semiconductor supply chain, Heraeus remains a relevant materials and recycling partner, though a narrower one after selling sputtering targets and semiconductor chemicals. Its forward semiconductor story now rests on packaging materials, quartz, ceramics and the fiber that connects AI data centers, while its recycling position rests on metal know-how that few rivals can match.
The investment case hinges on whether FY2026 shows clean earnings and cash conversion alongside a clean resolution of the legal matters. If both occur, the portfolio is more focused and better governed than at any time in a decade. If either fails, the balance sheet still protects the company, but rating pressure and customer attrition would become the central issue. The overall assessment is stable credit with a cautious operating outlook, pending evidence.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Title | Tenure | Background |
|---|---|---|---|
Dr. Frank Stietz | CEO, Chairman, Labor Director | CEO since 23 May 2025; Board since March 2020 | Born 1966; diploma in experimental physics, University of Kassel and Montana State; doctorate and habilitation in physics, MBA; Carl Zeiss 2000–2015, including head of Corporate Research and Technology; President Heraeus Electronics from 2015; President Norwood Medical 2022–2023; elected to the Jenoptik Supervisory Board in 2026 |
Barbara Gregor | CFO | Since 1 January 2026 | Succeeded Rolf Wetzel, who left 30 September 2025 |
Dr. Klemens Brunner | Managing Director, Semiconductor & Electronics and Industrials | Board since 15 August 2025 | Former President of Heraeus Electronics |
Dr. Steffen Metzger | Managing Director, Precious Metals | Board since 15 August 2025 | Also CEO of Heraeus Precious Metals; both precious metals companies report to him |
Heiko Specht | Managing Director, Healthcare | Board since 15 August 2025 | Healthcare leadership |
Executive Leadership Team
| Name | Role |
|---|---|
Dr. Martina Gieg | Chief Human Resources Officer |
Deniz Serifsoy | Chief Transformation Officer |
Helge Heindl | General Counsel |
Nicole Ebenau | Chief Compliance Officer since 1 February 2026; previously at Porsche and CARIAD |
Helena Hallwas | Head of Corporate Audit, permanent guest |
Board of Directors — Franz Haniel
| Name | Role |
|---|---|
Franz Haniel | Chairman |
Alexander Wiesbach | Vice Chairman since June 2026 |
Jasmin Atessacan | Member, elected June 2026 |
Dr. Simone Bagel-Trah | Member |
Dr. Hans-Tjabert Conring | Member; Chairman of the Shareholders' Committee |
Birgit Heraeus-Roggendorf | Member |
Dr. Hubert Lienhard | Member |
Annette Lukas | Member |
Florian Pieroth | Member |
Dr. Mohsen Sohi | Member since 1 February 2025 |
Christian Stübing | Member |
Dr. Kathrin Wissel-Stoll | Member, elected June 2026 |
Major Shareholders
| Holder (FY2025 Financial Report, 31 December 2025) | Stake |
|---|---|
EVG Tertio GmbH & Co. KG | Predominant share of capital, without significant voting rights; exact percentage not publicly disclosed |
Voting shares | Dispersed among a number of shareholders; individual stakes not publicly disclosed |
Competitive Landscape
Competitors by Segment
| Business | Competitors | Positioning |
|---|---|---|
PGM recycling and refining | Umicore, Johnson Matthey, BASF, TANAKA, DOWA Eco-System, JX Advanced Metals | Heraeus is among the largest; strongest in Hanau, China and across trading |
Gold and silver refining | MKS PAMP, Valcambi, Metalor, Rand Refinery | Argor-Heraeus is one of the large Swiss refineries |
Semiconductor materials recycling | RS Technologies, KINIK, Mimasu, Phoenix Silicon, Pure Wafer, Solar Applied Materials, Umicore, TANAKA | Heraeus competes in metals, not wafer reclaim |
Bonding wire and packaging materials | TANAKA, Nippon Micrometal, MK Electron, Indium Corporation, MacDermid Alpha, Senju, Henkel | Long-standing wire and paste franchise, price pressure from China |
Quartz and fused silica | Shin-Etsu (partly a JV partner), Tosoh Quartz, Momentive Technologies, Corning, Ferrotec | Technology leader in high-purity glass, exposed to Chinese price pressure |
Hollow core fiber | Corning, YOFC, Linfiber, Microsoft Azure Fiber in-house design | Named partner of Microsoft |
Bone cement | Stryker, Zimmer Biomet, Tecres, Smith+Nephew | Market leader in the UK with about 82% share |
Medical contract manufacturing | Integer, Viant, Cirtec, Resonetics, Jabil Healthcare | Mid-sized specialist |
Steel sensors | Vesuvius, Minteq, Chinese local suppliers | Global category specialist |
Conductive polymers | Agfa, Solvay-origin businesses, Asian suppliers | Clevios is a recognized brand |
Peer Comparison FY2025
| Company | Fiscal year | Comparable revenue | Growth (%) | Operating margin (%) |
|---|---|---|---|---|
Heraeus | FY2025 | EUR 2,830M excl. metals | 4.4 | 15.8 |
Umicore | FY2025 | EUR 3.6bn excl. metal | 3 | 16.5 (adjusted EBIT) |
Johnson Matthey | FY to Mar 2026 | GBP 2,555M excl. metals | -10 | 13.3 (underlying) |
Materion | FY2025 | USD 1,046M value-added | -4.7 | 10.5 (operating profit) |
Integer | FY2025 | USD 1,854M sales | 8.0 | 11.9 (GAAP) |
Recent Developments
The HPM reorganization came with an explicit statement that no job cuts or site closures are planned. FY2025 saw headcount reductions in Semiconductor & Electronics in response to market conditions, and additions in Healthcare in Costa Rica.
