Kongsberg Automotive (KOA) Q2 2025 earnings summary

Executive summary

• Launched a cost reduction program targeting €15 million annual savings, with over 500 indirect positions reduced and aiming for €42 million in annual cost base improvements and 4–5% EBIT margin uplift by 2026.

• Renewed executive leadership and restructured the company to enhance performance, accountability, and operational efficiency, including closure of the Zurich office and consolidation of Swedish plant footprint.

• Acquired Chassis Autonomy and full ownership of a key China joint venture, strengthening position in advanced steering and commercial vehicle markets.

• Q2 revenues declined 8.1% year-over-year (to €181.6M–€192.4M), mainly due to weaker market and negative currency effects; EBIT fell due to lower sales, higher warranty accruals, tariffs, and asset impairments.

• Free cash flow improved versus Q2 2024, nearing break-even, mainly from positive net working capital development.

Financial highlights

• Q2 2025 revenues: €181.6M–€192.4M (down 8.1% year-over-year); Q2 EBIT: €-2.9M, impacted by €8.2M warranty accruals, tariffs, and asset impairments.

• Q2 free cash flow: €-0.9M, a significant improvement from previous quarters and Q2 last year.

• Q2 business wins totaled €91.1M in lifetime revenues, lower than previous quarters due to market uncertainty and tariffs.

• Secured a €20M lifetime revenue contract for a dog clutch actuator in the Chinese commercial EV segment, with production starting in 2025.

• Q2 net loss: €-2.0M; Q2 EBITDA: €4.7M; Q2 adjusted EBITDA: €7.9M.

Outlook and guidance

• H2 2025 EBIT margin expected to exceed H1 2025 and H2 2024, driven by ongoing cost savings and operational efficiencies.

• Revenues for H2 2025 projected to fall below both H1 2025 and H2 2024; 2026 market outlook is positive, especially in the commercial vehicle segment.