Overall assessment of the economic situation
The KION Group can look back on a successful 2024. Revenue held steady year on year, while the two operating segments saw a significant improvement in their financial performance.
In 2024, consolidated revenue amounted to €11,503.2 million, which represented a marginal increase of 0.6 percent compared with the previous year (2023: €11,433.7 million). Within this figure, the revenue generated by the Industrial Trucks & Services segment from external customers rose by 1.5 percent thanks to growth in both new business and the service business. By contrast, revenue generated from external customers in the Supply Chain Solutions segment edged down by 2.1 percent. This was due to a poor level of order intake in the project business (business solutions), whereas the service business recorded a jump in revenue.
At €917.2 million, the KION Group’s adjusted EBIT was significantly higher than the prior-year figure (2023: €790.5 million). The adjusted EBIT margin advanced to 8.0 percent (2023: 6.9 percent). The main driver of the strong increase in earnings and profitability was the rise in gross profit in the two operating segments.
Net income swelled to €369.2 million (2023: €314.4 million) on the back of the sharp rise in operating profit and the improvement in net financial expenses. However, the effective tax rate went up, partly because of the increase in non-tax-deductible expenses, such as a non-recurring item in connection with the impairment of the goodwill of the KION ITS Americas Operating Unit.
With the number of shares remaining unchanged, basic earnings per share jumped to €2.75 (2023: €2.33). KION GROUP AG will propose a dividend of €0.82 per share to the 2025 Annual General Meeting (2024: €0.70).
At €702.0 million, the KION Group once again generated a very high level of free cash flow in the year under review (2023: €715.2 million). This was due to the sharp rise in operating profit and the significant reduction in net working capital. Thanks to the good liquidity position, net financial debt was reduced by €297.3 million and stood at €913.2 million as at the reporting date (December 31, 2023: €1,210.6 million). This equated to 0.5 times adjusted EBITDA (2023: 0.7 times).