Kion Group (KGX) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered solid performance with revenues of €2.9 billion and adjusted EBIT of €220 million, both up year-over-year, driven by improvements in both operating segments.

• Profitability increased significantly in H1 2024, with a 2.1% rise in revenue to €5,736.2 million and adjusted EBIT up 28.3% to €447.0 million.

• Free cash flow was positive at €137 million in Q2 and €202.2 million in H1, supported by stable net working capital and improved EBIT.

• Guidance for 2024 was confirmed and narrowed, reflecting strong first-half results and updated market views.

• KION received industry recognition, including the IFOY Award for STILL and being named a Financial Times Climate Leader.

Financial highlights

• Q2 2024 revenue was €2,877.1 million, up 1.4% year-over-year; H1 2024 revenue was €5,736.2 million, up 2.1%.

• Adjusted EBIT was €220 million in Q2 (+15% year-over-year), with a margin of 7.7%; H1 adjusted EBIT was €447.0 million, margin 7.8%.

• Net income attributable to shareholders was €68 million for Q2; H1 net income was €181.7 million, up 24.1% year-over-year.

• Basic earnings per share for H1 2024 was €1.35, up from €1.09; Q2 EPS was €0.52.

• Order intake for H1 2024 was €5,078.7 million, down 3.7% year-over-year; Q2 order intake was €2.6 billion.

Outlook and guidance

• 2024 revenue guidance narrowed to €11,300–11,700 million; adjusted EBIT guidance narrowed to €830–920 million.

• Free cash flow guidance for 2024 is €550–670 million.

• ROCE guidance range updated to 7.7%–8.7%.

• ITS revenue guidance upper end reduced by €300 million; SCS revenue guidance lower end increased by €100 million.

• Macroeconomic uncertainties and customer reluctance to invest are expected to persist, especially in the Americas.