Kontron (SANT) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw strong growth in Transportation (+28%) and Defense (+25%) segments, with a record backlog of EUR 2,544m and a book-to-bill ratio of 1.13.

• Revenues declined 5.6% year-over-year to EUR 363.7m due to COM business deconsolidation and supply chain disruptions, but adjusted for divestments, revenues grew 1.7%.

• Working capital improved to EUR 283m, and a restructuring program is underway targeting EUR 30m annual savings.

• Focus shifted to high-growth sectors: defense, rail infrastructure, and cybersecurity, with strong performance in these areas.

• Cash-in of EUR 126m from congatec expected by September 2026.

Financial highlights

• Revenues grew 1.7% year-over-year to EUR 364m for Q1 2026 when adjusted for divestments.

• Adjusted EBITDA reached EUR 38m, impacted by EUR 8.5m restructuring costs.

• Adjusted EPS increased 6.7% to 32 cents; net profit rose to EUR 20m (adjusted).

• Operating cash flow was negative at EUR -9.1m, compared to EUR 2.8m in Q1 2025.

• Gross margin decreased to 41.9% from 44.0% in Q1 2025.

Outlook and guidance

• 2026 EBITDA guidance in line with 2025 at EUR 225m, excluding EUR 25m restructuring costs.

• 2026 revenues expected to match or slightly exceed 2025, with 8% organic growth when adjusted for divestments.

• GreenTec division expected to return to profitability by Q4 2026.

• Mid-term (2030) targets: EUR 2.6bn revenues, EUR 420m EBITDA, 80m KOS/CRA installations.

• Transportation and Defense expected to contribute EUR 500m and EUR 400m in revenues by 2030.