Kion Group (KGX) Q2 2025 earnings summary

Executive summary

• Q2 2025 order intake reached a record €3.5 billion, up 33% year-over-year, driven by strong Supply Chain Solutions (SCS) performance.

• Revenue declined 6% year-over-year to €2.7 billion in Q2 and 4.2% to €5,496.3 million in H1 2025, reflecting lower volumes in both segments.

• Adjusted EBIT was €189 million (7% margin) in Q2, down 14% year-over-year; H1 adjusted EBIT fell 13.9% to €385 million.

• Free cash flow remained positive at €132 million in Q2 and €161.9 million in H1, supported by net working capital release.

• Earnings per share rose 38% year-over-year to €0.72 in Q2, while H1 net income dropped 73.6% to €47.9 million due to non-recurring efficiency program costs.

Financial highlights

• Adjusted EBITDA for Q2 2025 was €457 million, down 4% year-over-year; H1 EBITDA decreased 23.4% to €718.8 million.

• Order book at quarter-end was €4,963 million, down 6% year-over-year but up 12% sequentially.

• Service revenue share increased to 49–50.5% of total revenue.

• Net financial debt rose to €986 million, leverage ratio stable at 0.5x.

• ROCE guidance for FY 2025: 7.0–8.4%.

Outlook and guidance

• Full-year 2025 outlook for group and segments confirmed, with revenue guidance at €10,900–11,700 million and adjusted EBIT at €720–870 million.

• Free cash flow guidance for FY 2025 is €400–550 million, including efficiency program outflows.

• Effective tax rate expected between 25% and 30%, updated due to German corporate tax changes.

• Guidance assumes no major supply chain disruptions from trade barriers or commodity restrictions.

• Q3 expected to be a weaker margin quarter for ITS due to seasonality; Q4 typically stronger.