Koenig & Bauer (SKB) Q2 2024 earnings summary

Executive summary

• Q2 and H1 2024 were challenging, with weak revenue and earnings, but order intake showed strong momentum, especially post-drupa, reaching a record €1,021.0m backlog.

• Operational guidance for 2024 is confirmed, targeting operating EBIT at the lower end of €25–40m and revenue of €1.3bn.

• The Spotlight programme focuses on cost-cutting, restructuring, and shifting from R&D to marketing and operational excellence, with €30–45m in special cost-saving effects expected in 2024.

• Management changes and restructuring are underway, especially in Digital & Webfed, to address persistent losses.

Financial highlights

• Order intake rose 16% year-over-year to €641.5m, with Q2 intake up 58.4% due to drupa-related orders.

• Order backlog reached a record €1,021.0m at mid-year, providing a strong foundation for future growth.

• Revenue for H1 2024 declined 10.8% year-over-year to €532.0m, mainly due to weak Sheetfed and Special segments.

• EBIT for H1 at €-33.9m; operating EBIT at €-23.9m, impacted by €10m in non-operating expenses and volume/mix effects.

• Free cash flow improved to €-27.7m from €-64.7m year-over-year.

Outlook and guidance

• Operating EBIT for 2024 expected at the lower end of €25–40m range; revenue target of €1.3bn confirmed.

• Spotlight programme to deliver €30–45m in special cost-saving effects in 2024, mainly from material and personnel adjustments.

• Medium-term targets: revenue of €1.8bn and EBIT margin of 8–9%.

• Stronger performance anticipated in H2 2024, driven by order backlog conversion.