Kontron (SANT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues rose 8.2% year-over-year to EUR 385m, driven by strong growth in high-margin Software + Solutions.

• EBITDA increased 35.6% to EUR 48.0m, with gross margin improving from 41.3% to 44.0%.

• Net income attributable to shareholders rose to EUR 20.1m, and EPS climbed to 33c from 26c.

• Backlog reached EUR 2.2bn, and the design win pipeline expanded to over EUR 7bn, driven by new technologies and major contract wins.

• 2025 EBITDA target reaffirmed at at least EUR 220m, with a 20% EBITDA margin aimed for by 2030.

Financial highlights

• Revenue grew 8.2% year-over-year to EUR 385m; EBITDA up 35.6% to EUR 48m; net result after NCI rose 23.8% to EUR 20m.

• EPS increased from 26c to 33c; operating cash flow improved from -10.7m to 2.8m.

• Gross profit rose 15.1% to EUR 169.5m; book-to-bill ratio at 1.28.

• Equity ratio improved from 35.8% to 38.9% sequentially; net debt increased to EUR 191.9m.

• EUR 208m cash on hand and EUR 220m in available credit lines.

Outlook and guidance

• 2025 revenue guidance set at EUR 1.9–2.0bn, with EBITDA expected to exceed EUR 220m.

• Backlog and design wins support strong growth trajectory; major ramp-up in GreenTec and software-driven solutions anticipated.

• Strategic focus remains on high-margin IoT and software, with further evaluation of low-margin businesses.