Kendrion (KENDR) Q3 2025 earnings summary

Executive summary

• Completed transformation into a pure-play industrial company with the sale of China business, enabling exclusive focus on industrial activities and positioning for sustainable, profitable growth.

• Q3 2025 results reflect strong operational discipline, margin enhancement, and a robust balance sheet, with revenue rising 2% year-over-year to EUR 60.6 million and normalized EBITDA up 24% to EUR 9.4 million.

• Announced a special dividend of EUR 1 per share and a share buyback program up to EUR 10 million, both funded by China divestment proceeds.

• Long-term cooperation with Knorr-Bremse at Sibiu Mobility Electronics facility optimizes capacity and mitigates production ramp-down risks.

Financial highlights

• Q3 2025 revenue from continuing operations was EUR 60.6 million, up 2% year-over-year.

• Normalized EBITDA grew 24% to EUR 9.4 million, with EBITDA margin rising to 15.5% from 12.7% last year.

• Q3 normalized EBITA was EUR 6.2 million (margin 10.2%), up 44% year-over-year.

• Net profit before amortization from continued operations was EUR 3.9 million, up 44% year-over-year; net profit from continuing operations increased 67% to EUR 3.5 million.

• Free cash flow in Q3 was EUR 10.1 million, supporting balance sheet strength.

Capital allocation and financing

• Net debt reduced to EUR 88.4 million from EUR 104.5 million a year ago; leverage ratio improved to 2.1 from 2.5.

• Received EUR 70 million in proceeds from China divestment after quarter-end, further strengthening the balance sheet.

• Special dividend of EUR 1 per share approved; ex-dividend date 18 Nov 2025, payout 25 Nov 2025.

• Share buyback program of up to EUR 10 million to commence 26 Nov 2025.