Krones Ag Stock Earnings Reports

Krones confirmed its 2026 full-year guidance and reiterated its 2028 mid-term targets despite a challenging macro environment. Key H1 2026 financials: order intake €2.85bn (H1 +4.5%), book-to-bill 1.05, reported revenue €2.715bn (FX-adjusted €2.775bn, +1.8%), EBITDA €292.8m (margin 10.8%), free cash flow before M&A -€30.8m (H1 cash flow hit by a €181m working-capital increase and somewhat higher CapEx). Order backlog stands at ~€4.3bn and delivered lead times are stable at ~30 weeks. Regional dynamics: strong order intake growth in North & South America, stable in Europe and Eastern Europe, slightly weaker in Middle East and China (expecting catch-up). Segment highlights: Filling & Packaging near target growth and margin (11.2% YTD), Process Technology limited revenue growth but healthy margins (10.6%), Intralogistics strong revenue growth (~9.7% FX-adjusted) but margin lags (5.3% YTD) and should improve on backlog mix. Liquidity is robust (~€1.304bn available, incl. ~€405m cash + credit lines). Management paid a small bolt-on acquisition (Wiro Präzisions, ~€10m revenue) to strengthen mold/tool capabilities. Main risks: geopolitical/energy-driven uncertainty, tariff effects, elevated working capital and underperformance at Netstal (margin-dilutive vs. expectations). Management is comfortable confirming 2026 guidance (3–5% revenue growth; 10.7–11.1% EBITDA margin; ROCE 19–20%) but sees the lower end as more likely and warns mid-term targets for 2028 (≈€7bn revenue; 11–13% EBITDA margin; ROCE >20%) will require stronger execution and favorable market development (Netstal performance is a key variable).