Koenig & Bauer (SKB) Q1 2025 earnings summary

Executive summary

• Annual and 2025 guidance confirmed despite challenging markets, seasonality, and global uncertainty, with strategic initiatives and the "Spotlight" cost-saving program advancing.

• Leadership transition underway, including Dr. Blum as CFO and Stephen Kimmich as CEO.

• Strategic focus on digitization, including the spin-off of the Software Innovation Hub into Koenig & Bauer Kyana GmbH and partnerships with Google Cloud and Siemens.

• "Spotlight" program delivered planned savings but temporary effects, including FX fluctuations and project postponements, pressured earnings.

• Order intake rose 0.9% year-over-year to €245.2m, and order backlog reached a record €1,032.8m, up 14.6% year-over-year.

Financial highlights

• Q1 revenue at €252.2m, down 0.4% year-over-year due to seasonality and product mix.

• Operating EBIT at €-11.4m (margin -4.5%), with total EBIT at €-14.2m (margin -5.6%), both down from prior year.

• Net loss widened to €-23.2m (EPS: €-1.40), compared to €-16.6m (EPS: €-1.01) in Q1 2024.

• Free cash flow negative at €-28.4m, reflecting seasonal inventory build-up.

• Net working capital improved to €306.3m (24.1% of LTM revenue), achieving the target of below 25%.

Outlook and guidance

• Full-year 2025 revenue guidance of €1.3bn and operating EBIT between €35–50m reaffirmed, supported by high order backlog and "Spotlight" savings.

• 2026 guidance targets €1.4–1.5bn revenue and 5–6% EBIT margin, subject to global economic and geopolitical developments.

• "Spotlight" program expected to deliver €40–50m gross savings in 2025 and €60–70m in 2026.

• Dividend to be omitted for 2024 due to net loss; payout policy remains at 15–35% of consolidated earnings when profitable.

• Positive cash flow expected for the full year.