Kitron (KIT) Q1 2025 earnings summary

Executive summary

• Q1 2025 began strongly, led by Defence & Aerospace momentum, with order backlog up 11% sequentially and 18% year-over-year to €525 million, and significant new orders totaling €76 million from key customers.

• Defence & Aerospace revenue grew 30% year-over-year, with sector focus on scaling production and ramping up Norway operations for a 50% volume increase.

• M&A activities are progressing, aligned with strategic expansion and long-term growth objectives.

• U.S. market remains vital, representing 15% of revenue, with flexible production between EU and U.S. sites.

• Malaysia operations progressing well, with new facility receiving positive feedback.

Financial highlights

• Q1 2025 revenue was €164.6 million, down from €173.9 million in Q1 2024 but up 2% sequentially.

• EBIT reached €12.5 million, up from €10.6 million last year, with a margin of 7.6% (6.1% last year).

• Net income increased to €7.6 million, with EPS at €0.04.

• Operating cash flow was €12.1 million, up from €8.5 million year-over-year.

• Equity ratio stands at 36.3%, up from 33.4% last year; net gearing reduced to 0.5.

Outlook and guidance

• Full-year 2025 revenue guidance is €640–710 million, with EBIT expected between €47–65 million.

• Defence & Aerospace expected to sustain double-digit growth; other sectors anticipate stabilization or recovery in late 2025.

• Anticipates higher margins in coming quarters as new capacity is utilized more efficiently.

• Strategic initiatives and sector focus expected to drive sustained growth through 2025.

• Book-to-bill ratio at 1.32, indicating strong order intake.