EQS-News: Kontron Achieves Strong Margin Growth

• 9-Month Figures: EBITDA climbs to EUR 194 million (PY: 141 million), consolidated net income (after minority interests) to EUR 111 million (PY: EUR 62 million)
• Operating EBITDA margin rises to 12.5% (PY: 11.7%)
• 9-Month operating cash flow of EUR 49.7 million (PY: EUR 2.8 million)
• Order intake of EUR 1,548 million with revenue of EUR 1,182 million, resulting in a book-to-bill ratio of 1.31
• Earnings forecast for 2025 confirmed

Linz, 05.11.2025: Kontron, a leading global provider of IoT technology, today announced its results for the first nine months of the 2025 financial year, thereby confirming the preliminary figures published on October 29, 2025.

Kontron increased sales to EUR 1,181.9 million in the first nine months of the 2025 financial year (PY: EUR 1,207.7 million). The moderate decline is due to the divestment of the COM business. EBITDA reached EUR 193.6 million in the 9-month period of 2025, up 37% on the previous year's figure of EUR 141.4 million, including a one-off effect of around EUR 46 million. Consolidated net income after minority interests rose to EUR 110.8 million (PY: EUR 62.3 million) or EUR 1.80 per share (PY: EUR 1.01) after nine months in the 2025 financial year.

Equity increased to EUR 714.8 million as of September 30, 2025 (December 31, 2024: EUR 652.3 million), and the equity ratio improved to 40.6% (December 31, 2024: 35.8%) compared to the 2024 balance sheet date. Operating cash flow in the 9-month period of 2025 amounted to EUR 49.7 million (PY: EUR 2.8 million). Kontron benefited from continued strong demand and was able to increase its high order backlog once again. The order backlog as of September 30, 2025 was EUR 2,444 million (December 31, 2024: EUR 2,078 million). The project pipeline increased to EUR 7,802 million at the end of September 2025 (December 31, 2024: EUR 6,643 million), underpinning Kontron's growth potential beyond the 2025 financial year. The book-to-bill ratio for the first nine months of 2025 was 1.31 (PY: 1.19).

In addition to the overall strong operating performance, the consistent execution of the high-margin product strategy is one of the highlights in 2025. Despite the divestment of around EUR 250 million in revenue per year from low-margin IT, EMS and COM business, profits increased significantly. As part of this strategy, Kontron has systematically streamlined its portfolio in order to clearly focus on its core business in the Internet of Things ("IoT") and to position itself as the leading global technology provider. As a result, the gross margin has increased from 34.7% in 2022 to 41.7% in 2025 and even 43.4% in Q3 2025 over the past three years, based on strong growth in the high-margin Software and Solutions segment.

The momentum in order intake remains strong. Demand is particularly high in the railway infrastructure, defense and aerospace sectors. In the high-speed rail sector, Kontron has already recorded more than EUR 300 million in new orders in 2025, with its strong technological position in the future FRMCS rail standard proving to be a decisive success factor. In the defense sector, demand for data communication and encryption technologies in particular has risen sharply. With its Kontron-OS operating system, specifically designed for cybersecurity, Kontron became the first provider to introduce CRA (Cyber Resilience Act) compliant IoT solutions with AI support.

"Against the backdrop of the successful business development in the first nine months of 2025, the high order backlog, and robust demand, Kontron is confident about the rest of the year and beyond the 2025 financial year," says Hannes Niederhauser, CEO of Kontron. 

As communicated in the publication of the preliminary figures on October 29, 2025, revenue for the full year 2025 is expected to be EUR 1.7 billion, reflecting the discontinuation of the COM, EMS and IT businesses and the focus on higher-margin business. Kontron expects EBITDA to remain unchanged at approximately EUR 270 million. This includes around EUR 220 million in operating EBITDA as well as non-recurring income from portfolio streamlining.

The 9-month report is available at www.kontron.com.

About Kontron

Kontron AG (www.kontron.com, ISIN AT0000A0E9W5, WKN A0X9EJ, KTN) is a leading IoT technology company. For more than 20 years, Kontron has been supporting companies from a wide range of industries to achieve their business goals with intelligent solutions. From automated industrial operations, smarter and safer transport to advanced communications, connectivity, medical, and energy solutions, the company delivers technologies that add value for its customers. Kontron has around 7,000 employees in over 20 countries worldwide and is listed on the SDAX® and TecDAX® of the German Stock Exchange.

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