Krones AG

Krones posted H1 2026 revenue of EUR 2.715 billion reported, or EUR 2.775 billion FX-adjusted, for growth of 1.8% year over year. EBITDA was EUR 292.8 million and EBITDA margin improved to 10.8% from 10.6%; EBT was EUR 197.7 million. Order intake totaled EUR 2.850 billion, up 4.5%, with a book-to-bill ratio of 1.05 and backlog around EUR 4.3 billion. Free cash flow was minus EUR 30.8 million, working capital increased by EUR 180 million, liquidity was EUR 1.304 billion, and equity ratio rose to 43.6%. For 2026, management reiterated 3% to 5% revenue growth, 10.7% to 11.1% EBITDA margin, and 19% to 20% ROCE. Segment guidance was also reaffirmed: Filling and Packaging Technology 2% to 4% revenue growth and 11% to 11.5% EBITDA margin; Process Technology 0% to 5% growth and 9% to 10% margin; Intralogistics 5% to 10% growth and 7.5% to 8.5% margin.

Thomas Ricker said Krones delivered a positive first half despite a globally slowing economy and high market uncertainty, supported by resilient business models and a strong global footprint. He emphasized robust pipelines, solid backlog, and good factory utilization for the rest of 2026, and said July orders so far confirm the upbeat view. He also stressed that the company remains focused on localization, system solutions, and closing technology gaps, including through the small Wiro acquisition.

Uta Anders focused on the financial bridge from H1 to full-year targets. She said FX-adjusted revenue grew 1.8%, EBITDA margin improved to 10.8%, and working capital rose to EUR 1,117 billion, driving negative free cash flow of EUR 30.8 million; she expects working capital to normalize through the year. She also highlighted EUR 1.304 billion of liquidity, EUR 405 million cash, and close to EUR 900 million in free credit lines, while noting the material cost ratio fell to 45.1% and personnel cost ratio was 32.9%, with both likely to normalize somewhat later in the year.

Analysts focused on whether Krones can still hit its order-intake and revenue guidance amid higher uncertainty, especially from the Iran conflict, energy costs, and slower customer decision-making. Management said the pipeline remains robust, July orders are confirming the trend, and the main issue is longer decision cycles rather than a lack of demand. Questions also centered on North America strength, higher North American inventory for local-for-local supply, margin dilution at Netstal, and whether the 2028 targets remain realistic; management said Netstal is the biggest question mark, but the rest of the plan remains on track, including new capacity openings in China and India.