Financial position

The principles and objectives applicable to financial management as at June 30, 2025 were the same as those described in the 2024 combined management report.

Analysis of capital structure

Non-current and current liabilities amounted to €12,545.4 million as at June 30, 2025, which was marginally below the figure as at December 31, 2024 (€12,598.3 million).

Non-current and current financial liabilities, the breakdown of which is shown in the table ‘Industrial net debt’, decreased to a total of €1,605.6 million as at June 30, 2025 (December 31, 2024: €1,700.3 million). This reduction was predominantly due to the repayment of a tranche of the promissory note of €79.5 million that matured in June 2025.

Net financial debt (non-current and current financial liabilities less cash and cash equivalents) amounted to €986.2 million as at June 30, 2025 (December 31, 2024: €913.2 million). This equates to 0.5 times adjusted EBITDA on an annualized basis (December 31, 2024: 0.5 times). To reconcile the net financial debt with the industrial net operating debt (INOD) of €2,510.7 million as at June 30, 2025 (December 31, 2024: €2,497.5 million), the liabilities from the short-term rental business of €777.8 million (December 31, 2024: €814.1 million) and the liabilities from procurement leases of €746.7 million (December 31, 2024: €770.1 million) are added to net financial debt. Leverage on industrial net operating debt (INOD) stood at 1.3 times adjusted EBITDA on an annualized basis (December 31, 2024: 1.3 times).

An increase in the financing volume meant that non-current and current liabilities from the lease business rose to €4,611.5 million as at June 30, 2025 (December 31, 2024: €4,407.5 million). Of this total, €4,493.1 million was attributable to the financing of the direct lease business (December 31, 2024: €4,280.5 million) and €118.4 million to the repurchase obligations resulting from the indirect lease business (December 31, 2024: €127.0 million).

Contract liabilities, which mainly relate to prepayments received from customers in connection with the long-term project business in the Supply Chain Solutions segment, decreased to €688.8 million as at June 30, 2025 (December 31, 2024: €778.6 million).

The retirement benefit obligation and similar obligations under defined benefit pension plans fell to €674.9 million as at June 30, 2025 (December 31, 2024: €747.5 million) due to an overall increase in discount rates.

Consolidated equity declined to €5,886.0 million as at June 30, 2025 (December 31, 2024: €6,207.1 million). This gave an equity ratio of 31.9 percent (December 31, 2024: 33.0 percent). The decline in equity was primarily due to currency translation losses of €337.8 million, which were recognized in other comprehensive income, and to the dividend of €107.5 million distributed by KION GROUP AG in the second quarter. These effects were partly offset by the net income for the period of €47.9 million and the actuarial gains and losses arising from the measurement of pensions, which amounted to a net gain of €44.5 million (after deferred taxes).

Analysis of capital expenditure

The KION Group’s capital expenditure on property, plant and equipment and on intangible assets (excluding right-of-use assets from procurement leases) in the period under review gave rise to cash payments of €173.2 million (H1 2024: €182.7 million). The focus in the Industrial Trucks & Services segment was on product development and the modernization of production and technology facilities. Capital expenditure in the Supply Chain Solutions segment predominantly related to development costs.

Analysis of liquidity

Cash flow from operating activities came to €343.3 million in the first six months of 2025 (H1 2024: €366.7 million). Liquidity was boosted not only by the operating profit achieved but also by the reduction in net working capital during the year. The main components of the ‘Other’ item in the six months under review were the variable remuneration paid to employees and a rise in payments in respect of defined benefit obligations resulting from pro rata special funding. Most of the expenses recognized in the reporting period for implementation of the efficiency program did not yet have an impact on cash flow.

There was an increase in net cash used for investing activities to minus €181.4 million in the first half of 2025 (H1 2024: minus €164.4 million). Within this total, cash payments in respect of capital expenditure on property, plant and equipment and intangible assets came to minus €173.2 million (H1 2024: minus €182.7 million), of which minus €66.2 million was attributable to capitalized development costs (H1 2024: minus €58.4 million).

Free cash flow – the sum of cash flows from operating activities and investing activities – amounted to €161.9 million in the reporting period (H1 2024: €202.2 million).

Net cash used for financing activities rose to minus €318.1 million in the reporting period (H1 2024: minus €241.0 million). This was due to the repayment of financial debt, the higher dividend of minus €107.5 million distributed to KION GROUP AG’s shareholders (H1 2024: minus €91.8 million), and larger payments made for interest portions and principal portions under procurement leases, which totaled minus €113.2 million (H1 2024: minus €81.7 million).

Cash and cash equivalents fell to €619.5 million as at June 30, 2025 (December 31, 2024: €787.0 million).

Taking into account the credit facility of €1,386.7 million that was freely available and, as at the reporting date, entirely unutilized (December 31, 2024: €1,385.7 million), the unrestricted cash and cash equivalents available to the KION Group as at June 30, 2025 amounted to €2,004.4 million (December 31, 2024: €2,172.2 million).