VMI owner remains optimistic despite first-half decline

Dutch industrial group TKH has struck a cautiously optimistic tone about its VMI tire-building systems business, despite reporting a softer first-half performance in 2026. The company, which operates VMI as the flagship unit within its Automated Machinery division, stressed that long-term demand drivers for advanced tire manufacturing technology remain intact. TKH cited ongoing industry shifts toward greater production flexibility, sustainability, and automation as key factors that will continue to fuel demand for its highly automated tire-building systems. The group’s Automated Machinery division saw organic sales drop 5.7% year-on-year to €218.5 million in the first six months of 2026, while the order backlog shrank to €259.2 million from €367.1 million at the end of 2025. Added-value margins also declined from 54.2% to 52.9%, though TKH noted that the 2025 figure had been boosted by the completion of several major projects. The combination of lower revenue and reduced margins led to a 21.1% organic drop in adjusted EBITA, which fell to €35.0 million. TKH attributed the first-half softness to persistent geopolitical tensions, elevated energy costs, and ongoing uncertainty around tariffs, all of which have delayed purchasing decisions among tire manufacturers. Despite these short-term headwinds, the company reaffirmed its confidence in VMI’s long-term growth trajectory, driven by structural trends in automation and sustainability within the tire industry.