Kitron (KIT) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered solid sales and profit growth, with revenue of EUR 172.2 million and EBIT of EUR 15.0 million, maintaining an 8.7% margin, led by Defence & Aerospace and Industry sectors.

• Defence & Aerospace revenue surged 25% year-over-year, with a 46% increase in order backlog, driven by new contracts and geopolitical demand.

• Order backlog grew 12% year-over-year to EUR 509 million, reflecting strong demand in strategic segments.

• Strategic investments in capacity, innovation, and ongoing M&A activities, including facility expansions in Sweden and Norway, are supporting long-term growth.

• Full-year 2025 outlook was raised due to robust market fundamentals and sector momentum.

Financial highlights

• Q2 2025 revenue reached EUR 172.2 million, up 2.7% year-over-year, with EBIT at EUR 15.0 million and EBIT margin at 8.7%.

• Operating cash flow improved to EUR 19.3 million, and net working capital reduced to EUR 180.7 million.

• H1 2025 revenue was EUR 336.8 million, down 1.4% year-over-year, but EBIT increased nearly 8% to EUR 27.5 million.

• Dividend of EUR 6.0 million paid in Q2.

• Net income for Q2 was EUR 10.0 million, EPS at EUR 0.05.

Outlook and guidance

• 2025 revenue guidance raised to EUR 675–725 million; EBIT expected between EUR 55–65 million.

• Stronger demand and bookings expected in H2 2025, with Defence & Aerospace projected to grow 30% in H2 versus H1.

• Non-Defense sectors, including Industry and Medical, are expected to strengthen in the second half and into 2026.

• Anticipates recovery in Electrification sector later in 2025 as market conditions improve.

• Trade wars, global economic uncertainties, and rapid defense orders could impact demand.