Q3 2025 Kitron ASA Earnings Call Transcript
Key Points
- Kitron ASA (STU:KP5) reported a strong Q3 with revenue up 15% year over year, reaching close to €168 million.
- The EBIT margin was robust at 9%, with EBIT increasing by 36% to €14.6 million.
- The defense aerospace sector was a significant growth driver, with revenue up 82% year over year and a 100% increase in order backlog.
- Operating cash flow improved significantly to €44 million, compared to just €2 million in the previous year.
- The company raised its full-year revenue guidance to between €700 million and €750 million, reflecting strong order intake and execution.
- The connectivity sector showed mixed results, with declines in legacy products offsetting growth in next-generation equipment.
- Medical devices sector underperformed, with overall weakness despite growth in life support and surgical equipment.
- Asia's performance was slightly lower due to customer transitions, impacting overall regional growth.
- Electrification saw a temporary pause as some customers expanded capacity, affecting short-term growth.
- Supply chain issues, particularly with mechanical parts, caused minor delays in defense projects, although not significantly impacting overall performance.
Welcome everyone, and thank you for joining the Q3 2025 presentation for the Kitron Group. I'm Peter Nilsson, CEO of Kitron, and presenting along with me today is Cathrin Nylander, CFO. This quarter marks the continuation of the momentum we built through the first half of the year. We'll review the highlights of our performance, key growth drivers, and what's ahead for the rest of 2025.
Next slide, please. Quarter highlights. Q3 was another strong quarter. Operationally, we've maintained solid execution across customer ramp-ups and new contracts. Profitability remained resilient. All regions delivered EBIT margin at 9%, even in the face of some local headwinds. Performance has been solid in the quarter, driven to a large extent by defense airspace revenue, which grows 82% year over year. This is also visible in the order backlog, which grows 100% for defense airspace and 31% in total, closing in on 600 million.Our defense, our success with new defense tech continues with a â¬100 million order from a new customer signed.
Next slide, please. Operations
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