Q3 2025 Kion Group AG Earnings Call Transcript
Key Points
- KION GROUP AG (KIGRY) reported a 10% increase in group order intake, reaching EUR2.7 billion compared to the prior year.
- Free cash flow was a strong positive at EUR231 million, indicating robust cash management.
- Earnings per share increased by nearly 60% to EUR0.87, showcasing significant profitability improvement.
- KION GROUP AG (KIGRY) received a platinum rating from EcoVadis, placing it among the top 1% of over 150,000 companies rated, highlighting its commitment to sustainability.
- The company has formed strategic partnerships with innovative players in the supply chain solutions industry, enhancing its focus on innovation, robotics, and automation technologies.
- Revenue was flat at the KION level, with growth in supply chain solutions offset by a decline in the ITS segment.
- The ITS segment experienced a 3% revenue decline year-over-year, impacted by lower volumes and fixed cost absorption.
- Order intake in the third quarter for the SCS segment declined by approximately 50% sequentially, despite a year-over-year increase.
- The gross margin in the SCS segment was down sequentially, affected by costs associated with closing out legacy projects.
- The company anticipates potential disruptions to supply chains due to trade barriers and restrictions on access to critical commodities, which could impact future performance.
Our key takeaways before we open the line for questions and answers. Starting please on page 3. The third quarter was another solid quarter in line with our expectations. Group order intake was EUR2.7 billion, a 10% increase compared to the prior year.
Revenue was flat at the Kion level with the increase in supply chain solutions compensating for the anticipated decline in the ITS segment. Adjusted EBIT was EUR190 million corresponding to an adjusted EBIT margin of 7%.
Year-over-year, while the SCS continued to improve its profitability, profitability and ITS reflected the expected negative impact of lower volumes. Both operating segments improved their adjusted EBIT margin sequentially. Free cash flow was a strong positive EUR231 million and earnings per share was [EUR0.87], an increase of nearly 60%.
On page 4, I'll share with you some recent business highlights. In September, Linde Material Handling announced its partnership with the European aircraft manufacturer Airbus for the deployment
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