In This Article:
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Revenue: EUR 2.8 billion for Q3 2024.
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Adjusted EBIT: EUR 220 million with an adjusted EBIT margin of 8.1%.
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Free Cash Flow: Positive EUR 229 million.
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Earnings Per Share: EUR 0.55.
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Order Intake: EUR 2.4 billion, reflecting seasonal softness.
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Net Income: EUR 72 million attributable to shareholders.
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Net Debt Reduction: EUR 163 million decrease in net debt.
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Service Business Revenue Share: 50% of total revenues in the quarter.
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Guidance for Full Year 2024: Revenue between EUR 11.4 and 11.6 billion; Adjusted EBIT between EUR 850 and 910 million; Free cash flow between EUR 570 and 650 million.
Release Date: February 04, 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 a solid third quarter with stable adjusted EBIT and EBIT margins despite tough comparisons.
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The company successfully narrowed its guidance ranges for the full year, reflecting confidence in its performance.
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Free cash flow was positive at EUR229 million, driven by strong EBIT and improvements in networking capital.
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The new Center of Excellence for Automation in Antwerp, Belgium, is expected to enhance the company's capabilities in delivering innovative automation solutions.
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KION GROUP AG (KIGRY) has entered into a strategic partnership with Eurofork, enhancing its solution portfolio with automated high-density storage solutions.
Negative Points
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Order intake was impacted by seasonal softness and customer hesitation due to macroeconomic and political uncertainties.
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Earnings per share declined year-on-year due to higher net financial and tax expenses, despite stable adjusted EBIT.
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The company faces ongoing challenges in the ITS segment with a mixed-driven lower margin.
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There is a continued expectation of subdued demand in the SCS segment due to macroeconomic uncertainties.
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The destocking process in the North American market is ongoing, affecting unit and value terms negatively.
Q & A Highlights
Q: With the normalization of order intake and revenue correlation, what measures can Kion Group take to mitigate potential revenue decline next year? A: Richard Smith, CEO: We remain committed to achieving and maintaining more than 10% margins by the end of our planning period in 2027. Lower revenues next year would be a temporary challenge, requiring cost adjustments to return margins above 10%. We have flexibility in our cost base and will share further information on 2025 expectations with our full-year 2024 financials.
Q: Are you observing different momentum in smaller and mid-sized automation projects compared to larger ones? A: Richard Smith, CEO: The initial drop in interest rates was a positive step, but more reductions are needed. Our supply chain solutions business is building a balanced portfolio between service business, small-medium projects, and larger projects, which is crucial for good execution and profitability.