Krones AG

Krones reported first-half 2026 order intake of EUR 2.850 billion, revenue of EUR 2.715 billion as reported and EUR 2.775 billion FX-adjusted, EBITDA of EUR 292.8 million, and EBITDA margin of 10.8%. Revenue grew 1.8% FX-adjusted; EBITDA margin improved by 0.2 percentage points from 10.6% to 10.8%; free cash flow was minus EUR 30.8 million. EBT was EUR 197.7 million, and liquidity stood at EUR 1.304 billion, including EUR 405 million cash and close to EUR 900 million of free credit lines. Management confirmed full-year 2026 guidance for revenue growth of 3% to 5%, EBITDA margin of 10.7% to 11.1%, and ROCE of 19% to 20%; segment guidance was also reaffirmed, including Filling and Packaging Technology revenue growth of 2% to 4% with 11% to 11.5% EBITDA margin, Process Technology revenue growth of 0% to 5% with 9% to 10% margin, and Intralogistics revenue growth of 5% to 10% with 7.5% to 8.5% margin.

Thomas Ricker emphasized that Krones is navigating a challenging global backdrop with resilient business models and a strong global footprint. He repeatedly pointed to a robust pipeline, a solid backlog, and well-utilized factories as reasons to stay confident on the year, while also noting that customers are taking longer to decide because of geopolitical and energy-cost uncertainty. His tone was constructive but cautious: he said the second half must be stronger, and that management is working harder than when the 2028 targets were set because the environment is tougher now.

Uta Anders walked through the financials in detail, highlighting EUR 2.715 billion reported revenue, EUR 2.775 billion FX-adjusted revenue, EUR 292.8 million EBITDA, a 10.8% margin, and EUR 197.7 million EBT. She explained that material expense ratio improved to 45.1% due to supplier agreements from 2025, mix, and price levels, while personnel cost ratio was 32.9% and is expected to move toward around 30% as revenue accelerates. She also noted liquidity of EUR 1.304 billion, working capital of EUR 1,117 billion and a EUR 180 million increase versus year-end, free cash flow of minus EUR 30.8 million, and said the cash generation should normalize during the year. She added that the July acquisition of Wiro Präzisions is small, margin accretive, and intended to close a technology gap in advanced molding.

Analysts focused on whether Krones can still hit full-year order intake and revenue targets amid longer customer decision cycles and geopolitical risks. Management said the pipeline remains robust, July order intake supports the outlook, and the company is comfortable with the guidance but more comfortable toward the lower end of the 3% to 5% revenue range. Questions also centered on North America, inventory build, and the 2028 targets: management said North America is recovering from last year’s tariff-related slowdown, inventory is being built locally in North America to serve that market and avoid tariffs, and the 2028 plan still stands but now looks harder, with Netstal the biggest uncertainty.