Kendrion (KENDR) Q1 2026 earnings summary

Executive summary

• Achieved 5% year-over-year revenue growth to EUR 65.2 million in Q1 2026, driven by industrial business groups and improved profitability across all segments.

• Normalized EBITDA increased 21% to EUR 11.0 million, with margin expanding to 16.9%.

• Return on invested capital rose to 25.3%, reflecting improved earnings and asset utilization.

• EUR 10 million share buyback program completed, contributing to increased net debt and reflecting disciplined capital allocation.

• Despite macroeconomic uncertainty, industrial business performance remained robust, supported by pricing discipline and a healthy order book.

Financial highlights

• Revenue grew 5% year-over-year (6% at constant exchange rates), reaching EUR 65.2 million.

• Normalized EBITDA increased 21% to EUR 11.0 million; EBITDA margin expanded by 220 basis points to 16.9%.

• Net profit before amortization rose 53% to EUR 5.2 million; net profit from continuing operations up 62% to EUR 4.7 million.

• Free cash flow was negative EUR 3.0 million due to seasonal working capital and tax timing.

• Leverage ratio improved to 1.0x from 2.5x a year ago.

Outlook and guidance

• Macroeconomic visibility remains limited, but management is cautiously optimistic due to a healthy order book and strong project pipeline.

• Reaffirmed strategic targets: EBITDA margin of 15%-18%, ROI of 23%-27%, annual revenue growth of 5%-8%, and dividends of at least 50% of normalized net profit.

• Short-term focus on margin expansion, cost control, and operational improvements.

• Well-positioned for long-term growth in robotics, automation, safety, and medical technology.