Report

Krones starts financial year with strong order intake and confirms financial targets for 2026

2026-05-08 3:34 min Facts & Figures

Krones AGNeutraubling, Germany

Krones’ customers continue to show robust willingness to invest. In the first quarter of 2026, the company increased order intake by 5.3%, from €1,435.9 million in the previous year to €1,512.1 million. This means that the contract value of orders is also higher than in the fourth quarter of 2025 (€1,460.0 million).
Adjusted for currency translation effects, revenue increased by 1.4%. Reported revenue was €1,379.1 million (previous year: €1,410.0 million). Based on the book-to-bill ratio of 1.10 in the first quarter, Krones expects revenue growth to accelerate through to the year-end.
The EBITDA margin from January to March improved from 10.6% in the previous year to 10.8%, which is within the guidance range for the current financial year.
Due to the managed increase in working capital, Krones generated free cash flow before M&A activities of −€9.5 million in the first quarter of 2026 (previous year: €165.2 million). ROCE amounted to 17.6% (previous year: 20.5%).
Following the positive first-quarter trend, Krones has confirmed the guidance for the full year 2026. The company expects revenue growth of 3% to 5% adjusted for currency translation effects, an EBITDA margin of 10.7% to 11.1% and ROCE of 19% to 20%.

Krones continued its stable business development in the first quarter of 2026 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 first quarter, revenue growth on target three months into the year

Krones’ order intake developed very positively from January to March 2026. At €1,512.1 million, order intake exceeded the €1,435.9 million recorded in the previous year by 5.3% and was also higher than in the fourth quarter of 2025 (€1,460.0 million). The book-to-bill ratio – the ratio of order intake to revenue – was 1.10 in the first quarter of 2026 (previous year: 1.02).

The healthy order intake is reflected in the order backlog. Compared to the end of 2025 (€4,190.4 million), this grew by 3.2% to €4,323.4 million. The continued very high order backlog enhances Krones’ planning certainty and ensures production capacity utilisation in the lines and project business well into the fourth quarter of 2026.

Krones’ revenue in the first quarter of 2026 was influenced by currency translation effects in the amount of around €50 million. Adjusted for these effects, revenue from January to March rose by 1.4% compared to the previous year. Reported revenue was €1,379.1 million (previous year: €1,410.0 million). While first-quarter revenue growth adjusted for currency translation effects was within the guidance range for the full year 2026 in the core segment, Filling and Packaging Technology, it fell short of that range in the Process Technology and Intralogistics segments due to intra-year revenue phasing. On the basis of the positive trend in order intake, Krones expects growth to accelerate through to the year-end in both segments and for the group.

Krones improves profitability in first three months

Krones further improved profitability in the first quarter of 2026. This mainly reflects the implementation of strategic measures to improve the company’s performance and cost structures.

From January to March 2026, Krones generated earnings before interest, taxes, depreciation and amortisation (EBITDA) of €148.9 million (previous year: €149.3 million). The EBITDA margin improved from 10.6% to 10.8%. This was within the target range of 10.7% to 11.1% for the EBITDA margin in the full year 2026.

Due to the higher depreciation and amortisation of fixed assets and lower financial income/expense, earnings before taxes (EBT) in the first quarter fell relative to the previous year, from €107.9 million to €98.1 million. For the full year 2026, Krones expects EBT to increase compared to the previous year. In total, Krones generated consolidated net income of €68.6 million in the first quarter of 2026 (previous year: €75.9 million). This equates to earnings per share of €2.17 (previous year: €2.40).

Free cash flow (excluding M&A) developed as planned in first quarter

Krones significantly reduced liabilities to suppliers between January and March 2026. This active management was a key reason why the company increased working capital by a total of €126.0 million in the first three months of 2026. Krones consequently generated free cash flow of −€9.5 million adjusted for M&A activities in the first quarter – as planned, below the very high previous year’s level of €165.2 million.

Krones continues to have a very solid financial and capital structure. Net cash, meaning cash and cash equivalents less bank debt, stood at €523.1 million at the end of March 2026 (previous year: €589.7 million).

ROCE (return on capital employed) for the first quarter of 2026 was 17.6%, down on the high prior-year figure of 20.5%.

Krones confirms full-year financial targets for 2026

Krones remains realistically optimistic for the 2026 financial year, despite the difficult global economic situation. The first quarter confirms this assessment. At the same time, the business environment remains very volatile for Krones. As the current situation in the Middle East shows, the company once again faces numerous challenges this year. It is currently impossible to fully assess how the conflict in Iran will affect the economy in the Middle East and, by extension, the global economy. Uncertainty also surrounds global tariff policies, which could lead to a decline in world trade. Material shortages and problems in worldwide supply chains remain a further source of uncertainty.

Overall, based on the current expected development of the markets relevant to Krones and the positive first quarter, the company confirms its financial targets for 2026.

Adjusted for currency translation effects, the Executive Board expects consolidated revenue growth of 3% to 5%. On the basis of increasing operating revenue, an ongoing disciplined price strategy and continued implementation of the cost optimisation measures, Krones aims to improve profitability again this year compared to 2025. At group level for 2026, the company forecasts an EBITDA margin of 10.7% to 11.1%. For the third financial performance target, ROCE, Krones expects between 19% and 20% this year.

www.krones.com

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