Kion Group (KGX) Q1 2025 earnings summary

Executive summary

• Order intake rose 11% year-over-year to €2.7 billion, driven by growth in both Industrial Trucks & Services and Supply Chain Solutions segments, despite geopolitical uncertainties.

• Revenue declined 2–2.5% year-over-year to €2.1–2.8 billion, mainly due to subdued demand in new truck and project business.

• Adjusted EBIT fell 13.8–14% to €195.5–196 million (7% margin), impacted by lower volumes and €191 million in efficiency program expenses.

• Net loss attributable to shareholders was -€46.9 to -€48 million; EPS was -€0.36 due to efficiency program costs.

• Service business share of revenue increased to 49%, with strong customer interest in AI and automation solutions showcased at major trade fairs.

Financial highlights

• Order intake: €2.7 billion (+11% YoY); revenue: €2.1–2.8 billion (-2 to -2.5% YoY); adjusted EBIT: €195.5–196 million (-13.8 to -14% YoY); free cash flow: €29.7–30 million.

• Adjusted EBIT margin: 7% (down from 7.9%); reported EPS: -€0.36 (PY: €0.83).

• Net financial debt: €949–949.1 million; leverage ratio stable at 0.5x net financial debt to EBITDA.

• Free cash flow positive but down year-over-year.

• ROCE: 8.4% (Q1 2024: 8.3%).

Outlook and guidance

• 2025 outlook confirmed for group and both segments, contingent on no significant deterioration in the economic environment.

• Guidance: revenue €10,900–11,700 million, adjusted EBIT €720–870 million, free cash flow €400–550 million, ROCE 7.0–8.4%.

• Efficiency program expenses expected to continue, with total non-recurring expenses of €240–260 million in 2025.

• Margin improvement in SCS expected to continue, aiming for double-digit margins by 2027.

• Group revenue expected to change -5% to +2% YoY; adj. EBIT €720–870m (-21% to -5% YoY); FCF €400–550m (-43% to -22% YoY).