Yahoo Finance

• Order Intake: Increased by 0.9% year-on-year to EUR245 million.

• Order Backlog: EUR1.032 billion, the highest at the start of the year in recent history.

• Revenue: EUR252.2 million, slightly below the previous year due to seasonality.

• Operating EBIT: Minus EUR11.4 million, compared to minus EUR10.2 million last year.

• Networking Capital Ratio: Below the 25% threshold for the second consecutive quarter.

• Free Cash Flow: Negative EUR19.3 million, typical for Q1 due to seasonal effects.

• Net Financial Position: Decreased from minus EUR128 million to minus EUR158 million.

• R&D Expenses: Reduced from EUR16 million to EUR10.6 million, indicating Spotlight program effectiveness.

• Interest Results: Improved slightly from minus EUR6.6 million to minus EUR6.4 million.

• 2025 Revenue Guidance: Expected around EUR1.3 billion with operating EBIT between EUR35 million and EUR50 million.

• 2026 Revenue Guidance: Projected between EUR1.4 billion and EUR1.5 billion with an EBIT margin of 5% to 6%.

• Warning! GuruFocus has detected 6 Warning Signs with WBO:SKB.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Koenig & Bauer AG (WBO:SKB) confirmed its guidance for the year, despite international political disruptions.

• The company reported a slight increase in order intake year-on-year, rising by 0.9%.

• The order backlog is at its highest level at the start of the year in recent history, providing a strong foundation for future operations.

• The new paper and packaging segment showed positive revenue growth and a slight improvement in earnings.

• The Spotlight program is on track, contributing to cost savings and supporting the company's financial targets.

Negative Points

• The company experienced a difficult first quarter, which is typical due to seasonality, but still concerning.

• Group revenue was below the first quarter due to seasonality and other factors.

• Operating EBIT was negative at minus EUR11.4 million, slightly worse than the previous year's minus EUR10.2 million.

• There were temporary effects of around EUR5 million in the special and new technologies segment, impacting profitability.

• The company faces uncertainties related to global economic and geopolitical developments, which could affect future performance.

Q & A Highlights

Q: Could you explain the EUR2 million FX effect and its impact on future quarters? A: Stephen Kimmich, CFO, explained that the EUR2 million FX effect was due to a revaluation of dollar receivables at a higher hedge rate than the December 31 rate. This was a one-off effect, and the company has successfully hedged its US dollar revenue at an attractive rate for the next 2.5 years. The negative impact will be offset by positive effects in the next three quarters.