Krones (KRN) Q3 2024 earnings summary

Executive summary

• Revenue and profitability increased significantly in the first nine months of 2024, with Q3 revenue up 13.2% year-over-year and strong order intake and backlog supporting high capacity utilization into 2025.

• Order intake for the first nine months reached €4.12 billion, with order backlog rising to €4.4 billion, ensuring stable capacity utilization through 2025.

• Free cash flow (excluding M&A) improved by €311 million to €145 million for the first nine months.

• The Netstal acquisition was integrated successfully, contributing to revenue growth and strategic diversification.

• Guidance for 2024 is confirmed across all key metrics, with expectations to reach the upper end of revenue and EBITDA margin ranges.

Financial highlights

• Revenue for the first nine months was €3.87 billion, up 11.2% year-over-year, with Q3 revenue at €1.32 billion (+13.2%).

• EBITDA for the period was €391.1 million (10.1% margin), up 18% year-over-year; Q3 EBITDA margin was 10.2%.

• EBT reached €275.6 million (7.1% margin), including a €4.5 million one-off gain.

• Equity ratio increased to 40.5%; ROCE improved to 18.3%, within the 17%-19% target range.

• Free cash flow before M&A was €145 million for nine months, with a full-year target of €200 million.

Outlook and guidance

• 2024 guidance confirmed: revenue growth of 9%-13%, EBITDA margin of 9.8%-10.3%, ROCE of 17%-19%.

• Segment guidance: Filling and Packaging Technology revenue growth 9%-13%, EBITDA margin 10.3%-10.8%; Process Technology revenue growth 15%-20%, EBITDA margin 8%-9%; Intralogistics revenue growth 5%-10%, EBITDA margin 6%-7%.

• Mid-term (2028) targets: revenue ~€7 billion, EBITDA margin 11%-13%, ROCE >20%.