The global textile technology landscape underwent a structural shift on February 2, 2026, as the Rieter Group finalized the acquisition of Barmag, effectively launching its new ‘Man-Made Fiber’ Division.

This transformative move allows the Winterthur-based firm to transcend its traditional focus on short-staple cotton spinning, positioning it as the sole systems supplier capable of servicing the entire value chain for both natural and synthetic fibers. By integrating Barmag’s specialized filament technology, Rieter is hedging against the inherent cyclicality of individual fiber markets, particularly as global demand for technical textiles and performance apparel accelerates.

Navigating geopolitical friction and tariff barriers

Despite this strategic expansion, Rieter’s 2025 financial performance reflects the broader challenges of the current trade climate. Group sales for the 2025 fiscal year totaled CHF 685.1 million, a 20 per cent decline compared to 2024, largely suppressed by punitive US tariffs and persistent trade conflicts. The Machines & Systems division bore the brunt of this uncertainty, with sales contracting by 23 per cent. However, the firm achieved a positive operating EBIT of CHF 2.5 million before transaction costs, a result of aggressive cost-reduction measures and a 6 per cent growth in the After Sales Division, driven by a resilient service network in China and Central Asia.

Capital structure and medium-term scalability

To finance this acquisition, Rieter successfully executed a capital increase, elevating its equity ratio to 53.3 per cent and securing net liquidity of CHF 184.3 million. While the company reported a net loss of CHF 63.4 million due to restructuring expenses, the 2026 transition year is projected to generate sales between CHF 1.3 billion and CHF 1.5 billion. The integration of Barmag is the cornerstone of our resilience, noted a company spokesperson during the February 26 media release. By targeting minimum synergies of CHF 20 million, Rieter has modeled a ‘High Scenario’ where sales could reach CHF 2.2 billion by 2028, contingent on a broad-based recovery in global textile capacity utilization.

Rieter is the leading supplier of systems for short-staple fiber spinning and man-made fiber processing. Operating globally, it focuses on automating textile production across Asia and Europe. The firm targets CHF 2.2 billion in sales under its new medium-term growth plan, building on over 225 years of engineering heritage.