Q2 2026 Kendrion NV Earnings Call Transcript
Key Points
- Record Q2 normalized EBITDA margin of 18.1%, at the upper end of the 15%-18% target range.
- Normalized return on invested capital nearly doubled to 26.3%, exceeding the 2027 target of 23%-27% ahead of schedule.
- Strong order book and record project pipeline in growth markets (robotics, healthcare, energy, industrial safety) support continued growth in H2.
- Mobility segment delivered strong profitability with EBITDA up 44% and margin rising to 24.9%, driven by the Knorr-Bremse cooperation agreement.
- Leverage halved to 1.2x from 2.4x a year ago, with a new EUR70 million credit facility agreed on improved terms.
- Successful strategic pivot to four secular growth markets, with revenue growth of 5% at constant currency in H1.
- Healthy cash generation from Mobility with no further investment, and a disciplined CapEx approach (EUR3.4 million vs. depreciation of EUR6.1 million).
- IAC revenue declined 2% in Q2 due to reduced volumes at a limited number of accounts, including a weak textile sector.
- Macroeconomic visibility remains limited, with geopolitical and trade uncertainty persisting.
- Normalized free cash flow was only EUR4 million in H1 due to seasonal working capital buildup and one-off cash outflows.
- The sound business within Mobility underperformed expectations, though partially offset by strong fuel pump controller performance.
- Input price pressure, particularly on copper, is expected to continue, though limited to around 1% or less.
- The company's growth is partly dependent on pipeline conversion, which carries execution risk, especially in long-cycle development projects.
Morning, everybody here in the Novotel and on the webcast, and welcome to Kendrion's Q2 and first half year 2026 results presentation. My name is Joep van Beurden, Kendrion CEO, and with me here is Jeroen Hemmen, our CFO. First, this morning's agenda. I will start with summarizing the key highlights of the first half of 2026 and the strategic position of Kendrion after our move away from automotive as an industrial motion control specialist. I will then give you an update of the progress we have made operationally over the past half year. Jeroen will review our Q2 and first half 2026 results. Next, I will discuss the outlook for 2026, look at our 2027 financial targets, preview our Capital Markets Day planned for September 17, and go to Q&A. Before discussing the strategic repositioning, I would like to draw your attention to the following.
Certain statements contained in this presentation constitute forward-looking statements, and these forward-looking statements rely on several assumptions concerning
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
