EQS-News: Krones continues its profitable growth path in third quarter and confirms financial targets for 2025

 Krones continues its profitable growth path in third quarter and confirms financial targets for 2025

• From July to September 2025, Krones’ order intake rose significantly to €1,374.3 million, 6.2% higher than in the preceding quarter. Compared to the third quarter of the previous year (€1,323.2 million), the contract value of orders increased by 3.9%.
• Revenue increased in the third quarter by 4.7% year on year to €1,380.9 million. The first nine months of 2025 saw revenue growth of 6.0%.
• Krones improved EBITDA by more than revenue in the third quarter to €142.2 million (previous year: €134.9 million), despite expenses in the high single-digit million euro range for the drinktec trade fair. The EBITDA margin rose to 10.3% (previous year: 10.2%). Excluding the drinktec effect, the EBITDA margin for the third quarter is at the upper end of the guidance range of 10.2% to 10.8% for the full year 2025.
• Krones increased ROCE from 18.3% to 19.5% in the first nine months of 2025 and generated free cash flow before M&A activities of €80.2 million.
• Following the positive performance in the first three quarters, and despite the global uncertainties, Krones has confirmed the guidance for the full year 2025. The company expects revenue growth of 7% to 9%, an EBITDA margin of 10.2% to 10.8% and ROCE of 18% to 20%.

Krones continued its profitable growth path in the third quarter of 2025 despite the macroeconomic uncertainties. The company’s markets are generally less affected by economic fluctuations and Krones’ customers continue to show robust willingness to invest.

Order intake increased significantly in the third quarter, revenue growth on target nine months into the year

Krones’ order intake developed positively between July to September 2025, increasing by 6.2% on the preceding quarter to €1,374.3 million. Compared to the third quarter of the previous year (€1,323.2 million), order intake increased by 3.9%. Order intake over the first nine months, at €4,104.7 million, matched the very high level of the previous year (€4,116.1 million).

The order backlog of €4,286.8 million as of 30 September 2025 was on par with the end of 2024 (€4,289.5 million). This continued very large order backlog enhances Krones’ planning certainty and ensures production capacity utilisation in the lines and project business until mid of the third quarter of 2026.

Revenue from July to September 2025 improved by 4.7% year on year to €1,380.9 million. This resulted in a book-to-bill ratio – the ratio of order intake to revenue – of 1.00 in the third quarter. In the first nine months, revenue went up by 6.0% to €4,107.4 million, in line with target. The company’s revenue was also affected by the weakness of the Dollar against the euro.

Krones improves profitability in third quarter

Krones’ profitability in the third quarter benefited from increased efficiency in production. Earnings were also positively impacted by the implementation of strategic measures to improve performance and the company’s cost structures. The third-quarter earnings figures were affected by expenses for the drinktec trade fair, which was in the high single-digit million-euro range. Despite this effect, Krones generated a disproportionately large increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to €142.2 million between July and September 2025 (previous year: €134.9 million). The EBITDA margin improved to 10.3% (previous year: 10.2%). Excluding the expenses for drinktec, the EBITDA margin for the third quarter was at the upper end of the target range of 10.2% to 10.8% for the full year 2025. Over the first nine months of 2025, the EBITDA margin rose year on year from 10.1% to 10.5%. The effects of the acquisition of Netstal Maschinen AG had a slight dilutive impact on the margin in the first three quarters of 2025.

Earnings before taxes (EBT) increased by 9.7% to €302.3 million between January and September 2025 (previous year: €275.6 million). The EBT margin consequently rose from 7.1% to 7.4%. On the bottom line, Krones generated consolidated net income of €213.7 million in the first nine months of 2025, up 6.5% year on year. Earnings per share improved to €6.75 (previous year: €6.35).

Free cash flow (excluding M&A) of €80.2 million in first nine months

From January to September 2025, Krones generated free cash flow of €80.2 million adjusted for M&A activities. This represents an improvement of €33.5 million after the third quarter compared to the first half of 2025. In the first nine months of 2024, free cash flow (excluding M&A) reached the exceptionally high level of €145.0 million.

Krones continues to have a very solid financial and capital structure. Net cash, meaning cash and cash equivalents less bank debt, stood at €361.2 million at the end of September 2025 (previous year: €301.9 million).

The company improved ROCE (return on capital employed) to 19.5% in the first three quarters of 2025 (previous year: 18.3%).

Krones confirms full-year financial targets for 2025 despite global uncertainties

Krones remains realistically optimistic for the 2025 financial year, despite the difficult global economic situation. The first nine months of 2025 confirm this assessment. However, the business environment nevertheless remains challenging for Krones. It is difficult to predict what impact the various tariff policies and trade agreements between the USA and key trading partners will have on world trade and global growth. This uncertainty is influencing companies’ investment decisions worldwide, at least over the short-term. Geopolitical risks also persist in Europe, the Middle East and other parts of the world. Material shortages and problems in global supply chains as a result of trade conflicts and military action remain a source of uncertainty.

Based on the current expected development of the markets relevant to Krones, and after the positive first nine months, the company confirms its financial targets for the full year 2025, despite the global uncertainties.

The Executive Board expects consolidated revenue growth of 7% to 9%. On the basis of increasing revenue, an ongoing disciplined price strategy and continued implementation of the efficiency and cost optimisation measures, Krones plans to improve profitability again this year compared to 2024. The company forecasts an EBITDA margin at group level of 10.2% to 10.8%. For the third performance target, ROCE, Krones expects between 18% and 20% in the current financial year.

Krones has published the full quarterly statement for the first three quarters of 2025 online at:

https://www.krones.com/media/downloads/Q3_2025_e.pdf

Contact:
Olaf Scholz
Head of Investor Relations, Krones AG
Phone: +49 9401 70 1169
Email: olaf.scholz@krones.com