Kontron (SANT) H2 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in FY 2025, with significant improvements in cash flow, EBITDA, and working capital.

• Continued portfolio streamlining, focusing on high-margin Software + Solutions and reducing exposure to low-margin EMS/IT/COM businesses.

• Record backlog and design wins, driven by robust order intake in defense, transportation, and automotive sectors.

• Initiated restructuring in GreenTec and solar business to address underperformance.

Financial highlights

• Revenues reached EUR 1,607m in 2025, down 4.6% year-over-year due to portfolio streamlining.

• EBITDA increased 23.8% to EUR 237m, with one-time effects contributing EUR 17m.

• Net profit rose to EUR 141m, up from EUR 91m in 2024, with a 55.3% increase in EPS.

• Operating cash flow surged 69.4% to EUR 168m.

• Gross margin improved to 42.1% despite discontinued low-margin business.

• Equity ratio strengthened to 41.8% from 35.8% year-over-year.

Outlook and guidance

• 2026 revenue guidance set at EUR 1,750–1,800m, with EBITDA expected at EUR 225m (before solar restructuring effects).

• Mid-term 2030 targets: EUR 2.6bn revenue, EUR 420m EBITDA, with Software + Solutions to comprise 50% of revenue and 75% of EBITDA.

• Focus on expanding in transportation, defense, and cybersecurity markets.