Kion Group (KGX) Q1 2025 earnings summary

Executive summary

• Order intake rose 11% year-over-year to €2.7 billion, driven by growth in both Industrial Trucks & Services and Supply Chain Solutions segments, despite geopolitical uncertainties.

• Revenue declined 2–2.5% year-over-year to €2,788.1 million, mainly due to subdued demand in new truck and project business.

• Adjusted EBIT fell 14% to €196 million (margin 7.0%), impacted by lower volumes and €191 million in efficiency program expenses; EPS was -€0.36.

• Service business share of revenue increased to 49%, nearly offsetting declines in new truck and project business.

• AI and automation solutions showcased at major trade fairs received strong customer interest, strengthening innovation profile.

Financial highlights

• Order intake: €2.7 billion (+11% YoY); revenue: €2.8 billion (-2.5% YoY); adjusted EBIT: €196 million (-14% YoY); margin: 7.0%.

• Free cash flow: €30 million (down 54.9% YoY); net loss: €46.9 million; EPS: -€0.36.

• Non-recurring items: -€194 million, mainly from efficiency program.

• Leverage ratio stable at 0.5x net financial debt to EBITDA; net financial debt at €949 million.

• ROCE: 8.4% (Q1 2024: 8.3%).

Outlook and guidance

• 2025 outlook confirmed for group and both segments, contingent on no significant economic deterioration.

• Group revenue expected at €10,900–11,700 million; adjusted EBIT €720–870 million; free cash flow €400–550 million; ROCE 7.0–8.4%.

• Efficiency program to deliver €140–160 million annual cost savings from 2026; total non-recurring expenses of €240–260 million expected in 2025.

• Margin improvement in SCS expected to continue, aiming for double-digit margins by 2027.

• Outlook subject to macroeconomic and geopolitical risks, including trade conflicts.