In This Article:
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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KION GROUP AG (KIGRY) reported an 11% increase in group order intake, reaching 2.7 billion, indicating strong demand across both operating segments.
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The company showcased innovative AI and automation solutions at key trade fairs, receiving positive feedback from customers.
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The service business demonstrated continued growth, with a 4% increase in the IDS segment and a 47% growth in the SCS segment.
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KION GROUP AG (KIGRY) has made significant investments in production, R&D, and sales networks, particularly in the APEC and Americas regions, preparing for geopolitical shifts.
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The company confirmed its outlook for fiscal year 2025, indicating confidence in its strategic direction despite economic uncertainties.
Negative Points
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Revenue declined by 2% year over year to 2.1 billion, with a 7% decline in the new truck business impacting overall performance.
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Adjusted EBIT decreased by 14% to 196 million, with a corresponding margin of 7%, reflecting lower volumes and reduced fixed cost absorption.
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Earnings per share were negative, at minus EUR36 cents, due to 191 million in expenses for an efficiency program.
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Geopolitical uncertainties, including escalating trade conflicts, pose potential risks to KION GROUP AG (KIGRY)'s value chains and markets.
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The company faces pricing pressure in the new truck business, impacting gross margins and contributing to lower profitability.
Q & A Highlights
Q: With Q1 orders showing a better mix in the ITS business, do you think the trough in terms of the mix was reached last year and is now firmly behind the group? A: The mix for counterbalanced trucks was up 15% year on year, and warehouse trucks were up 8%, leading to an overall 10% increase. This positive development was seen across all regions, indicating a favorable mix for us. We have not seen any reversals in the positive development so far this year. - Rob Smith, CEO
Q: Are clients adopting a wait-and-see attitude due to tariff uncertainties, or are they rethinking their supply chain organizations and ready to invest more in logistics? A: It's too early to tell, but the tariff discussions are exacerbating uncertainties, leading to hesitancy in starting new large-scale investments. However, there is a significant pickup in modernization and upgrade projects, which are like small automation projects. Customers are choosing to modernize existing facilities rather than starting new greenfield projects. - Rob Smith, CEO