Kontron (SANT) H2 2025 earnings summary

Executive summary

• Achieved record operating cash flow of EUR 168 million (up 69.4% year-over-year) and record EBITDA of EUR 237 million, including one-off effects from the COM transaction.

• Revenue reached EUR 1.6 billion, down 4.6% due to discontinued assets and activities, but organic growth was 3.2% after adjusting for portfolio streamlining.

• Significant portfolio streamlining included exit from low-margin EMS/IT/COM businesses, with focus on high-margin Software + Solutions and growth in defense, transportation, and automotive sectors.

• Record backlog and design wins, driven by robust order intake in defense, transportation, and automotive sectors.

• Initiated restructuring in GreenTec and solar business to address underperformance.

Financial highlights

• Gross profit slightly down 2.5% to EUR 676 million, but gross margin improved from 41.2% to 42.1%.

• Adjusted EBITDA (excluding one-offs) was EUR 220 million; adjusted net profit was EUR 109 million.

• Net profit rose to EUR 141 million, up from EUR 91 million in 2024, with a 55.3% increase in EPS.

• Equity ratio improved from 35.8% to 41.8%; net debt reduced to EUR 147 million.

• Operating cash flow surged 69.4% to EUR 168 million.

Outlook and guidance

• 2026 revenue guidance is EUR 1.74–1.8 billion, with EBITDA expected at EUR 225 million (before solar restructuring effects).

• By 2030, targeting EUR 2.6 billion in revenue and EUR 420 million EBITDA, with Software + Solutions expected to contribute 75% of EBITDA and 50% of revenue.

• Wallbox business guidance is conservative; EUR 60 million potential upside not included in base guidance.

• Focus on expanding in transportation, defense, and cybersecurity markets.