(RTTNews) - Krones AG (KRN.DE, KRNTY.PK, KRNNF.PK) reported robust results in the first half of 2025, significantly enhancing its profitability and reaffirming its financial targets for the year. Despite the prevailing macroeconomic uncertainties, the company maintained steady demand from its customers in the food and beverage industry, with only a minor 2.2% decline in order value compared to the prior year's elevated levels.
Revenue increased by 6.7% year-on-year to EUR2,726.5 million, supported by stable order intake and the integration of Netstal Maschinen AG, acquired in 2024. Though calendar effects slowed growth in the second quarter, order backlog remained strong at EUR4,293.4 million, assuring production capacity utilization through mid-2026.
EBITDA grew by 12.6% to EUR288.5 million and the EBITDA margin expanded to 10.6%, well within the company's guidance range. Earnings before taxes grew 10.7% to EUR205.5 million, while net income rose 8.0% to EUR145.8 million. Earnings per share increased to EUR4.60 from EUR4.27 per share last year.
Although free cash flow (excluding M&A) declined to EUR46.7 million from EUR127.0 million the previous year, the year-on-year improvement in total free cash flow was notable, thanks to the absence of acquisition-related outflows. Krones also saw a slight improvement in ROCE, increasing from 18.8% to 19.0%, and maintained a healthy net cash position of EUR375.2 million.
Despite global economic headwinds, including trade tensions and geopolitical risks, Krones remains confident in achieving its full-year targets. The company projects revenue growth between 7% and 9%, an EBITDA margin of 10.2% to 10.8%, and ROCE ranging from 18% to 20%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
