Earnings
EBIT and adjusted EBIT
The KION Group’s earnings before interest and tax (EBIT) fell sharply to €147.2 million in the first half of 2025 (H1 2024: €372.2 million). The main reason for this was the ongoing implementation of the efficiency program in the EMEA region. A large proportion (€196.7 million) of the total expected expenses relating to the affected non-production areas of the Industrial Trucks & Services segment and Corporate Services were recognized as non-recurring items in the period under review. This had a noticeable negative effect on the cost of sales and other functional costs. All in all, the KION Group anticipates that implementing the efficiency program will result in expenses of between €240 million and €260 million.
Against this backdrop, gross profit diminished to €1,461.9 million (H1 2024: €1,541.1 million). Furthermore, the Group’s overall profitability was particularly squeezed by the year-on-year reduction in revenue and the lower gross margin on new business in the Industrial Trucks & Services segment.
The sharp rise in selling expenses and general administrative expenses (up by 17.3 percent) and in research and development costs (up by 13.7 percent) compared with the first half of 2024 was mainly due to non-recurring items in connection with the efficiency program. In addition, generally higher personnel expenses drove the year-on-year increase in functional costs.
The ‘Other’ item, amounting to income of €33.7 million (H1 2024: expense of 15.7 million), related primarily to other income and expenses in the income statement, within which income and expense resulting from currency translation was notably more positive. The ‘Other’ item also included the share of profit (loss) of equity-accounted investments, which amounted to a profit of €6.1 million (H1 2024: profit of €9.9 million).
in € million |
Q2 |
Q2 |
Change |
Q1 – Q2 |
Q1 – Q2 |
Change |
|---|---|---|---|---|---|---|
Revenue |
2,708.2 |
2,877.1 |
–5.9% |
5,496.3 |
5,736.2 |
–4.2% |
Cost of sales |
–1,965.5 |
–2,124.7 |
7.5% |
–4,034.5 |
–4,195.0 |
3.8% |
Gross profit |
742.7 |
752.4 |
–1.3% |
1,461.9 |
1,541.1 |
–5.1% |
Selling expenses and administrative expenses |
–527.0 |
–507.1 |
–3.9% |
–1,205.5 |
–1,027.6 |
–17.3% |
Research and development costs |
–63.8 |
–62.9 |
–1.4% |
–142.8 |
–125.7 |
–13.7% |
Other |
17.2 |
–21.1 |
> 100% |
33.7 |
–15.7 |
> 100% |
Earnings before interest and tax (EBIT) |
169.1 |
161.3 |
4.8% |
147.2 |
372.2 |
–60.4% |
Net financial expenses |
–38.1 |
–43.3 |
12.0% |
–75.4 |
–84.5 |
10.7% |
Earnings before tax |
131.0 |
118.0 |
11.0% |
71.8 |
287.7 |
–75.0% |
Income taxes |
–36.1 |
–47.3 |
23.6% |
–23.9 |
–106.0 |
77.4% |
Net income |
94.8 |
70.7 |
34.2% |
47.9 |
181.7 |
–73.6% |
In total, non-recurring items amounting to an expense of €193.7 million (H1 2024: expense of €8.1 million) and effects from purchase price allocations amounting to an expense of €44.1 million (H1 2024: expense of €66.8 million) were recognized in the income statement. The non-recurring items in the reporting period consisted almost entirely of expenses under the efficiency program. The higher purchase price allocation effects recognized in the prior-year period had included additional expenses in connection with the impairment recognized on the goodwill of the KION ITS Americas Operating Unit in an amount of €22.4 million.
The KION Group’s EBIT adjusted for non-recurring items and purchase price allocation effects (adjusted EBIT) amounted to €385.0 million in the first six months of 2025 (H1 2024: €447.0 million). This decrease was largely due to the volume- and margin-related drop in gross profit in the Industrial Trucks & Services segment. The KION Group’s adjusted EBIT margin narrowed to 7.0 percent (H1 2024: 7.8 percent).
in € million |
Q2 |
Q2 |
Q1 – Q2 |
in % of |
Q1 – Q2 |
in % of |
|---|---|---|---|---|---|---|
EBIT |
169.1 |
161.3 |
147.2 |
2.7% |
372.2 |
6.5% |
Adjustment by functional costs: |
|
|
|
|
|
|
+ Cost of sales |
7.7 |
7.2 |
52.9 |
1.0% |
10.4 |
0.2% |
+ Selling expenses and administrative expenses |
13.1 |
15.5 |
169.6 |
3.1% |
28.9 |
0.5% |
+ Research and development costs |
0.0 |
– |
15.5 |
0.3% |
0.0 |
0.0% |
+ Other costs |
–0.4 |
36.3 |
–0.2 |
–0.0% |
35.6 |
0.6% |
Adjusted EBIT |
189.5 |
220.3 |
385.0 |
7.0% |
447.0 |
7.8% |
adjusted for non-recurring items |
–0.7 |
14.3 |
193.7 |
3.5% |
8.1 |
0.1% |
adjusted for PPA items |
21.1 |
44.7 |
44.1 |
0.8% |
66.8 |
1.2% |
EBITDA decreased to €718.8 million in the first six months of 2025 (H1 2024: €938.7 million). The non-recurring items included in EBITDA and EBIT in the reporting period were mainly attributable to the same matters. Adjusted EBITDA stood at €915.8 million (H1 2024: €948.2 million), giving an adjusted EBITDA margin of 16.7 percent (H1 2024: 16.5 percent).
in € million |
Q2 |
Q2 |
Q1 – Q2 |
in % of revenue |
Q1 – Q2 |
in % of revenue |
|---|---|---|---|---|---|---|
EBITDA |
454.2 |
460.5 |
718.8 |
13.1% |
938.7 |
16.4% |
Adjustment by functional costs: |
|
|
|
|
|
|
+ Cost of sales |
1.6 |
–2.6 |
36.4 |
0.7% |
–9.1 |
–0.2% |
+ Selling expenses and administrative expenses |
1.6 |
3.1 |
145.6 |
2.6% |
4.0 |
0.1% |
+ Research and development costs |
–0.1 |
– |
15.2 |
0.3% |
0.0 |
0.0% |
+ Other costs |
–0.4 |
13.0 |
–0.2 |
–0.0% |
14.5 |
0.3% |
Adjusted EBITDA |
456.8 |
473.9 |
915.8 |
16.7% |
948.2 |
16.5% |
adjusted for non-recurring items |
2.6 |
13.5 |
197.0 |
3.6% |
9.5 |
0.2% |
adjusted for PPA items |
– |
– |
– |
0.0% |
– |
0.0% |
Net financial expenses
Net financial expenses, representing the balance of financial income and financial expenses, amounted to €75.4 million in the half year under review (H1 2024: €84.5 million). Within this figure, interest expense on financial debt declined slightly to €29.2 million (H1 2024: €31.3 million). Moreover, net interest expense from the lease and short-term rental business improved to €26.1 million (H1 2024: €45.7 million), while interest income of €6.8 million was realized on the interest-rate derivatives used for hedging purposes in the lease business (H1 2024: €23.9 million). In addition, changes in the fair values of interest-rate derivatives and adjustments to the valuation of lease receivables designated as part of a fair value hedge made a negative contribution of €3.6 million to net financial expenses (H1 2024: positive contribution of €3.9 million). Income and expense resulting from currency translation amounted to net income of €1.4 million (H1 2024: net expense of €8.0 million).
Income taxes
Income tax expenses declined to €23.9 million in the first half of 2025 (H1 2024: €106.0 million) as a result of the lower earnings before tax. The effective tax rate for the reporting period fell to 33.3 percent (H1 2024: 36.9 percent).
Net income for the period
Net income for the reporting period amounted to €47.9 million and was thus substantially lower than in the corresponding period of the previous year (H1 2024: €181.7 million). This was primarily due to the adverse impact of non-recurring items in connection with the efficiency program. Basic earnings per share attributable to the shareholders of KION GROUP AG came to €0.36 (H1 2024: €1.35) based on a weighted average of 131.1 million no-par-value shares (H1 2024: 131.1 million).
ROCE
Return on capital employed (ROCE), which is the ratio of adjusted EBIT to capital employed, was down year on year at 8.2 percent at the end of the reporting period (June 30, 2024: 8.5 percent).
in € million |
Jun. 30, 2025 |
Jun. 30, 2024 |
||
|---|---|---|---|---|
Adjusted EBIT for the previous twelve months |
855.1 |
889.2 |
||
Average capital employed for the past five quarterly reporting dates1 |
10,427.7 |
10,409.7 |
||
|
|
|
||
ROCE |
8.2% |
8.5% |
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|
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