Report

Krones has a good start into 2025 and continues its profitable growth path

2025-05-09 3:14 min Facts & Figures

Order intake in the first quarter of 2025, at €1,435.9 million, was 6.8% higher than in the fourth quarter of 2024 (€1,344.6 million).
Krones increased revenue in the first three months of 2025 by 13.1% year on year to €1,410.0 million. Even without the effect of the acquisition of Netstal Maschinen AG, revenue growth from January to March was within the 7% to 9% guidance range for the full year 2025.
The EBITDA margin improved from 10.1% in the previous year to 10.6% in the first quarter of 2025, which is within the guidance range for the current year.
Krones increased ROCE from 19.0% to 20.5% in the first three months of 2025 and generated free cash flow before M&A activities of €165.2 million (previous year: €184.2 million).
Following the positive first-quarter trend, 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 looks back on a successful first quarter 2025. Despite difficult macroeconomic conditions, Krones remained on a stable and profitable growth path. The company’s markets are less affected by economic fluctuations and Krones’ customers continue to show robust willingness to invest.

Order intake stable at high level – revenue up 13.1%

Thanks to its internationally balanced customer base, Krones is able to compensate for fluctuations in demand in some regions with good business in other sales markets. Order intake from January to March 2025, at €1,435.9 million, was up 6.8% on the fourth quarter of 2024. Compared to the high level of the previous year (€1,482.7 million), the contract value of orders fell slightly by 3.2% in the first three months of 2025. Customer order activity therefore remained stable at a very high level in the first quarter of 2025. The book-to-bill ratio was 1.02.

The strong demand means that Krones’ order backlog further increased from January to March 2025 relative to the year-end 2024 (€4,289.5 million). As of 31 March 2025, the company had an order backlog totalling €4,315.4 million (previous year: €4,357.9 million). The very large order backlog ensures production capacity utilisation through to the beginning of the second quarter of 2026.

Krones significantly improved revenue in the first three months of 2025 by 13.1%, from €1,247.1 million a year earlier to €1,410.0 million. Part of the revenue growth is due to Netstal Maschinen AG, which was acquired in 2024 and whose revenue Krones has consolidated since 28 March 2024. Even without this effect, however, revenue growth from January to March was within the 7% to 9% guidance range for the full year 2025.

EBITDA margin increases from 10.1% in the previous year to 10.6%

Thanks to stable material availability, Krones maintained production capacity utilisation at efficient levels in the first three months of 2025. This had a positive impact on profitability, as did the implementation of strategic measures to improve performance and the company’s cost structures. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose in the first quarter of 2025 by 19.1% year on year, from €125.4 million to €149.3 million. The EBITDA margin improved significantly from 10.1% to 10.6%. This was within the target range of 10.2% to 10.8% for the EBITDA margin in 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) climbed by 21.2% in the first quarter of 2025, from €89.0 million to €107.9 million. The EBT margin consequently rose from 7.1% to 7.7%. Consolidated net income between January and March improved by 15.3%, from €65.8 million in the previous year to €75.9 million. This corresponds to earnings per share of €2.40 (previous year: €2.08).

Free cash flow (excluding M&A) at high level of €165.2 million

Krones’ free cash flow developed very positively in the first quarter of 2025, improving significantly by EUR 158.9 million to EUR 163.0 million. However, the acquisition of Netstal Maschinen AG had an impact of minus €166.7 million on free cash flow in the previous year. Adjusted for M&A activities, free cash flow fell from the previous year’s very high level by €19.0 million to €165.2 million in the first three months of 2025. The company’s net cash, meaning cash and cash equivalents less bank debt, amounted to €589.7 million at the end of March 2025 (previous year: €438.7 million). In addition, Krones had around €850 million in unused lines of credit as of 31 March 2025.

ROCE (return on capital employed) increased in the first quarter of 2025 to 20.5% (previous year: 19.0%), mainly due to the higher earnings before interest and taxes (EBIT).

Krones expects to continue profitable growth path and confirms financial targets for full year 2025

Krones made a good start to the 2025 financial year and has a large order backlog. At the same time, the business environment remains challenging. The escalating tariff conflict since April has significantly clouded the overall global economic outlook. 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 quarter the company confirms its financial targets for the full year 2025.

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 quarterly statement here

www.krones.com