Kendrion (KENDR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue from continuing operations rose 4% year-over-year to EUR 78.1 million, with normalized EBITDA up 7% to EUR 10.8 million and margin improving to 13.8%.

• Industrial Brakes revenue increased 7% year-over-year, while Mobility segment revenue surged 25-26% due to project ramp-ups in China; IAC segment declined 8% amid weak machine-building markets.

• Net debt reduced to EUR 97 million, leverage ratio improved to 2.5, supported by the final EUR 8.6 million payment from the Automotive divestment.

• Net profit before amortization was EUR 3.7 million; reported net profit up 19% to EUR 3.2 million due to absence of discontinued operations losses.

• Workforce reduced by 63 FTEs to 1,546, reflecting organizational rightsizing post-Automotive divestment.

Financial highlights

• Normalized EBITA from continuing operations rose 11% to EUR 6.9 million; reported net profit increased 19% to EUR 3.2 million year-over-year.

• Net profit from continuing operations was EUR 3.1 million, down 26% year-over-year; normalized net profit before amortization was EUR 3.7 million, up 3%.

• Free cash flow was negative EUR 2.3 million (excluding one-off inflow), mainly due to seasonal working capital effects.

• Basic EPS for Q1 2025 was EUR 0.20.

• Net finance charges increased to EUR 1.6 million due to negative currency results.

Outlook and guidance

• Trading in Q2 2025 expected to be similar to Q1, with limited impact so far from global trade tensions.

• EBITDA margin target of 15% by end of 2025 reiterated, with a long-term goal of 15%-18% and ROIC of 23-27% by 2027.

• Commitment to annual dividend payments of at least 50% of normalized net profit from 2025.

• Local-for-local supply chain strategy expected to mitigate tariff impacts and support operational resilience.

• Long-term growth expected from trends in electrification, automation, and cleaner energy.