Kitron (KIT) Capital Markets presentation summary

Business overview and market positioning

• Provides electronics manufacturing services across development, industrialization, sourcing, manufacturing, logistics, and repair for sectors including connectivity, electrification, industry, medical devices, and defense/aerospace.

• Operates in 11 countries with over 2,400 employees and more than 100,000 sq. m of manufacturing space, with a strong presence in the Nordics, North America, CEE, and Asia Pacific.

• Unique selling points include financial strength, global footprint, specialized certifications, speed, agility, sustainability, and a proven track record with market-leading customers.

Market outlook and growth drivers

• Nordic and U.S. markets remain strong, with European market recovery expected in 2026; new partnerships and acquisitions are underway.

• Connectivity sector expects 6% growth in 2025 and over 20% in 2026, driven by Industrial IoT; electrification to see over 15% growth in 2026, led by new customers and greentech.

• Industry sector demand is firm for 2025, with over 25% increase vs. Dec 2024; medical devices sector focuses on M&A for renewed growth.

Defense and aerospace expansion

• Defense budgets in NATO countries are rising, with European defense companies outpacing U.S. growth; Kitron expects over 30% growth in defense/aerospace in 2025.

• Strategic positioning includes long-term partnerships with leading OEMs, compliance with defense requirements, and geographic expansion to serve transatlantic customers.

• Scaling up production and qualifying more European sites for defense manufacturing; annual growth potential in relevant defense markets exceeds 20% YoY.

• Focus on systems with strong application knowledge, such as munitions, weapon control, communication, radar, drones, and countermeasures.