Kontron (SANT) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw strong growth in defense (up 32%), software (up 16%), and transportation (up 11%) year-over-year, while H1 2026 revenue declined 5.6% to €737.1m due to divestments and chip shortages.

• Adjusted EBITDA rose 3.5% to €101.4m, with Q2 adjusted EBITDA up 20% to €55m; unadjusted EBITDA for H1 2026 was €84.4m, down 13.9%.

• Record backlog reached €2,750m with a book-to-bill ratio of 1.55, indicating robust demand.

• GreenTec restructuring underway, reducing 424 FTE in H1 2026 and targeting €30m annual savings.

• Ennoconn/Foxconn partnership deepened, with a mandatory takeover offer launched and expected €40m annual synergies.

Financial highlights

• Q2 2026 revenues grew 0.5% year-over-year to €373m; H1 2026 revenues were €737m, down 5.6% due to divestments.

• Adjusted EBITDA for H1 2026 increased to €101m; net result after NCI at €49m; net income attributable to shareholders was €34.9m.

• Gross margin improved to 42.2% in H1 2026 from 40.8% in H1 2025.

• Operating cash flow was negative at -€14m for H1 2026, impacted by supply chain issues.

• Equity ratio remained stable at 41.7% as of June 2026.

Outlook and guidance

• 2026 EBITDA guidance is €200–225m, excluding €25m restructuring costs, with organic revenue growth of 8% anticipated.

• Full-year 2026 revenue expected to exceed €1.6bn, in line with the previous year.

• Defense segment expected to exceed €200m in revenues for 2026.

• Targeting further improvements in equity ratio and working capital in H2 2026.

• Additional annual earnings increases of €70m expected from synergies and cost savings.