Krones significantly increases profitability in first half-year and confirms financial targets for 2025

• Krones’ customers in the food and beverage industry continue to show robust willingness to invest. In the first half of 2025, despite the macroeconomic uncertainties, the contract value of orders fell only slightly compared to the previous year’s very high figure by 2.2% to €2,730.4 million (previous year: €2,792.9 million).
• Krones increased revenue between January and June by 6.7% to €2,726.5 million. Due to calendar effects, the pace of growth slowed as expected in the second quarter.
• EBITDA rose by 12.6% to €288.5 million in the first half of the year. The EBITDA margin thus improved significantly from 10.0% in the previous year to 10.6%, which is inside the guidance range for the current financial year.
• Krones increased ROCE from 18.8% to 19.0% in the first six months of 2025 and generated free cash flow before M&A activities of €46.7 million (previous year: €127.0 million).
• Following the positive trend in the first half-year, 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%.

After a strong first quarter 2025, Krones’ business developed according to plan from April to June, despite the challenging macroeconomic environment. The company’s markets are generally less affected by economic fluctuations and Krones’ customers continue to show robust willingness to invest.

Stable order intake – 6.7% increase in revenue

Krones’ order intake remained at a good level in the second quarter of 2025 at €1,294.5 million, 1.2% below the previous year. In the first half of 2025, despite the macroeconomic uncertainties, the contract value of orders fell compared to the previous year’s very high figure of €2,792.9 million by just 2.2% to €2,730.4 million.

As of 30 June 2025, Krones had an order backlog totalling €4,293.4 million. Krones’ order backlog thus showed virtually no change from the end of 2024 (€4,289.5 million). Relative to the previous year’s figure of €4,359.1 million, the order backlog was down slightly by 1.5%. The continued very high order backlog ensures production capacity utilisation in the lines and project business through to the middle of 2026.

Krones’ stable revenue growth continued in the first half of 2025. Due to calendar effects, the pace of growth slowed as expected from April to June. In the first six months of 2025, revenue increased by 6.7% year on year, from €2,556.1 million to €2,726.5 million. Part of the revenue growth in the first half-year is due to Netstal Maschinen AG, which was acquired in 2024 and whose revenue Krones has consolidated since 28 March 2024.

Significant rise in Krones’ profitability

The implementation of strategic measures to improve performance and the company’s cost structures had a positive impact on Krones’ profitability in the first half of 2025. This also benefited from good production capacity utilisation. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose between January and June 2025 by 12.6% year on year, from €256.2 million to €288.5 million. The EBITDA margin consequently improved significantly from 10.0% to 10.6%, which is within the EBITDA margin target of 10.2% to 10.8% for the full year 2025. The acquisition of Netstal Maschinen AG had a slightly dilutive impact on the margin in the reporting period.

Earnings before taxes (EBT) increased by 10.7% to €205.5 million in the first half of 2025 (previous year: €185.7 million). The EBT margin consequently rose from 7.3% to 7.5%. On the bottom line, Krones generated consolidated net income of €145.8 million in the first six months of 2025, up 8.0% year on year. Earnings per share improved to €4.60 (previous year: €4.27).

Free cash flow (excluding M&A activities) of €46.7 million in first six months

Krones significantly improved free cash flow in the first half of 2025 by €102.9 million year on year to €44.5 million (previous year: €–58.4 million). It should be noted here that the acquisition of Netstal Maschinen AG had a negative impact of €166.7 million on free cash flow in the previous year. Adjusted for M&A activities, free cash flow fell from €127.0 million in the previous year to €46.7 million in the first six months of 2025.

Krones continues to have a very solid financial and capital structure. The company’s net cash, meaning cash and cash equivalents less bank debt, amounted to €375.2 million at the end of June 2025 (previous year: €291.1 million).

ROCE (return on capital employed) improved to 19.0% in the first half of 2025 (previous year: 18.8%).

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 half of the year has confirmed this assessment. However, the business environment nevertheless remains challenging for Krones. The tariff conflict has significantly clouded the overall global economic outlook. It is not yet possible to predict to what extent the latest negotiation outcomes between the EU and the USA will contribute in influencing customers’ investment decisions in 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 half-year, 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 complete Interim Report for the first half of 2025 online at:

https://www.krones.com/media/downloads/Q2_2025_e.pdf