KONCAR - Elektroindustrija (KOEI) Q2 2025 earnings summary

Executive summary

• Achieved strong growth in all key financial and operational metrics in H1 2025, with significant contract wins, expansion in domestic and international markets, and major business structure changes from 2024 mergers.

• Major contracts signed include EUR 117.9 million with HŽ Passenger Transport, EUR 12.6 million for the Peruća small hydropower plant, and Siemens Energy's acquisition of a 40% stake in KONČAR - Transformer Tanks Ltd.

• Inaugural journey of a new battery-electric multiple unit marks a milestone in sustainable rail transport.

• Shareholders approved a EUR 3.00 per share dividend, reflecting robust financial performance.

• Four subsidiaries merged into the company during 2024, significantly altering the business structure and financials.

Financial highlights

• Sales revenue increased by 33.0% year-over-year; exports up 29.6%, accounting for 71.5% of total sales.

• Net profit rose 75.1% and EBITDA grew 54.1% compared to H1 2024; H1 2025 net profit was EUR 35.1 million and EBITDA EUR 36.7 million.

• Operating margin reached 19.9%, net margin 20.3%, and EBITDA margin 21.9% for H1 2025.

• Backlog increased to EUR 2.32 billion, up EUR 279.9 million from year-end 2024.

• Earnings per share increased to EUR 13.80 from EUR 5.39 year-over-year.

Outlook and guidance

• Full-year 2025 revenue plan fully covered by existing backlog; contracts for 2026 and beyond total EUR 1.58 billion.

• Management expects continued positive impact from the 2024 mergers, with further integration benefits anticipated.

• Strategic focus on export growth, innovation, and operational excellence despite ongoing macroeconomic risks.

• 2026 Business Plan to be adopted in December 2025.

• No significant seasonal or cyclical effects are expected to impact operations.