Kion Group (KGX) Q4 2025 earnings summary

Executive summary

• FY2025 results aligned with outlook, with order intake rising 13.4% to €11.705 billion and strong free cash flow; both main segments contributed to growth.

• Profitability in SCS (to be renamed IAS) increased, offsetting a "look-through" year in ITS.

• Adjusted EBIT fell 14% to €788.6 million, with margin at 7.0% versus 8.0% prior year.

• Net income dropped 34.9% to €240.5 million, impacted by one-time efficiency program expenses.

• Strategic partnerships and innovation in automation and battery technology enhanced competitiveness.

Financial highlights

• FY2025 order intake: €11.7bn (+13% YoY); revenue: €11.3bn (-2% YoY); adj. EBIT: €789m (-14% YoY); free cash flow: €709m (+1.1% YoY); EPS: €1.75 (-36% YoY).

• ITS revenue decreased 3.9% to €8.272bn; SCS revenue increased 4.4% to €3.071bn.

• Adj. EBIT in ITS dropped 21.3% to €721.8m; SCS EBIT rose 62.3% to €183.2m.

• Net financial debt reduced to €584m; leverage ratio improved to 0.3x.

• ROCE was 7.7%, down from 8.7% in 2024.

Outlook and guidance

• FY2026 revenue expected at €11.4–12.3bn (+1% to +9% YoY); adj. EBIT €850–1,040m (+8% to +32% YoY); FCF €430–570m (-39% to -20% YoY).

• ITS revenue guided at €8.2–8.8bn; IAS at €3.2–3.5bn.

• ROCE expected to rise to 8.3–9.7%.

• Guidance assumes no major disruptions from geopolitical or trade issues.

• Free cash flow anticipated to decrease due to timing of efficiency program cash outflows and higher acquisition-related capex.