Koenig & Bauer (SKB) Q3 2025 earnings summary

Executive summary

• Achieved strongest Q3 operational performance since 2018, marking a significant step toward profitability turnaround and confirming full-year guidance.

• Strategic expansion in India and the Middle East, with enhanced global visibility through major trade fairs.

• Launched innovative software products for brand protection and connected packaging, including Protected@Print and AURAVEO.

• Order intake declined year-over-year due to prior-year special effects and tariffs, but order backlog remains historically high, supporting future revenue.

• Revenue increased both year-over-year and sequentially, with both main segments contributing to growth.

Financial highlights

• Revenue for the first nine months rose by 5.0% year-over-year to €860.9m, driven by growth in both Paper & Packaging (+4.4%) and Special & New Technologies (+8.1%) segments.

• Operating EBIT for nine months improved to €6.4m (previous year: €-31.2m); Q3 EBIT reached €16.0m, the best since 2018.

• Net loss for nine months reduced to €-22.8m from €-77.3m year-over-year; Q3 net profit: €8.0m.

• Gross profit increased by 20.8% to €226.3m, with gross margin up to 26.3%.

• Free cash flow for Q3 turned positive at €21.8m, but for nine months was €-61.9m, mainly due to increased net working capital.

Outlook and guidance

• Full-year 2025 guidance confirmed: slight revenue growth to €1.3bn and operating EBIT of €35–50m, with higher probability in the lower half due to macroeconomic and geopolitical uncertainties.

• Strategic target remains revenue up to €1.5bn and operating EBIT margin of 5–6% by 2026, progress dependent on global economic and trade policy developments.

• Spotlight cost-saving program considered completed by end of 2025; future profitability improvements will not be driven by further Spotlight effects.

• Guidance depends on stable external conditions, successful strategy execution, and monitoring of trade/geopolitical risks.