Koenig & Bauer (SKB) Q1 2025 earnings summary

Executive summary

• Full-year guidance is confirmed despite a seasonally weak Q1 and ongoing geopolitical uncertainties, with strategic initiatives and a new segment structure advancing.

• The Spotlight cost-saving program is progressing, delivering planned savings but with temporary effects from FX and project phasing.

• Leadership transition is underway, with a new CEO and CFO taking over in the next quarter.

• Strategic focus on digitization, including the spin-off of the Software Innovation Hub (Kyana GmbH) and partnerships with Google and Siemens.

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

• Operating EBIT was €-11.4m (margin -4.5%), with total EBIT at €-14.2m (margin -5.6%), both down from prior year due to FX and project phasing.

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

• Free cash flow was negative at €-28.4m, reflecting inventory build-up and higher net working capital.

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

Outlook and guidance

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

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

• Positive EBIT effects from the Spotlight program expected to reach €40–50m 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.