Kion Group (KGX) Status Update summary

Market trends and order intake

• Global industrial truck market expected to stabilize at around 2.1 million units in 2024, with growth in EMEA and APAC, but a pronounced decline in the Americas.

• Q2 2024 saw sequential growth in new orders, but Q3 is expected to show a seasonal and macro-driven decline in both units and value, especially due to summer breaks and weaker macro data.

• Order intake mix continues to shift toward APAC and smaller warehouse equipment, impacting revenue and margins.

Revenue, margins, and guidance

• Q2 2024 revenue was €2.15 billion, with adjusted EBIT margin at 10.7%, down from 11.1% in Q1 due to mix effects.

• Fiscal 2024 revenue outlook for ITS narrowed to €8.5–8.7 billion, down from a previous upper end of €9 billion.

• Adjusted EBIT guidance tightened to €870–930 million, from €850–950 million previously.

• Q3 revenue expected to reflect usual seasonality, with adjusted EBIT margin softening sequentially but likely remaining above 10%.

• Adjusted EBIT margin unlikely to improve in Q4 compared to Q3 due to ongoing mix shifts.

Supply chain solutions and automation

• Warehouse automation market remains subdued despite structural demand drivers, with customers hesitant to sign orders due to macro uncertainty and upcoming US elections.

• SCS Q2 order intake was €677 million, including €70 million spillover from Q1; Q3 order intake expected to remain soft.

• Progress on legacy projects and cost optimization measures are supporting gradual EBIT improvement.

• SCS revenue has stabilized, and further EBIT improvements are expected as legacy projects conclude and cost measures take effect.