Financial position of the KION Group
Analysis of liquidity
Cash flow from operating activities came to €676.9 million in the first three quarters of 2025 (Q1–Q3 2024: €695.4 million). It was boosted by the operating profit achieved and, in particular, the considerable reduction in net working capital. Outflows included the variable remuneration paid to employees, lower payments for income taxes than in the prior-year period, and a rise in payments in respect of defined benefit obligations resulting from special funding. However, 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 €284.1 million in the first nine months of 2025 (Q1–Q3 2024: minus €264.1 million). Within this total, cash payments in respect of capital expenditure on property, plant and equipment and intangible assets came to minus €264.2 million (Q1–Q3 2024: minus €289.0 million), of which minus €98.6 million was attributable to capitalized development costs (Q1–Q3 2024: minus €92.7 million). The cash paid for acquisitions in the reporting period of minus €29.4 million (Q1–Q3 2024: minus €3.0 million) mainly related to the acquisition of an Australian industrial truck business as well as to subsequent purchase price payments for prior-year acquisitions.
Free cash flow – the sum of cash flow from operating activities and investing activities – amounted to €392.8 million in the first three quarters of 2025 (Q1–Q3 2024: €431.3 million).
Net cash used for financing activities rose to minus €825.6 million in the reporting period (Q1–Q3 2024: minus €345.5 million) and included the repayment due in September 2025 of the first corporate bond issued under the EMTN program of €500.0 million. This item also included larger payments made for interest portions and principal portions under procurement leases, which totaled minus €163.5 million (Q1–Q3 2024: minus €126.2 million), and the higher dividend of minus €107.5 million distributed to KION GROUP AG’s shareholders (Q1–Q3 2024: minus €91.8 million).
Cash and cash equivalents declined to €342.5 million as at September 30, 2025 (December 31, 2024: €787.0 million).
Taking into account the credit facility of €1,385.7 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 September 30, 2025 amounted to €1,727.5 million (December 31, 2024: €2,172.2 million).
in € million |
Q3 |
Q3 |
Change |
Q1 – Q3 |
Q1 – Q3 |
Change |
||
|---|---|---|---|---|---|---|---|---|
EBIT |
177.7 |
193.7 |
–8.2% |
325.0 |
565.9 |
–42.6% |
||
+ Amortization/depreciation1 on non-current assets (without lease and rental assets) |
152.6 |
129.3 |
17.9% |
417.2 |
399.6 |
4.4% |
||
+ Net changes from lease business (including depreciation1 and release of deferred income) |
–30.4 |
–5.9 |
< –100% |
–66.8 |
–32.9 |
< –100% |
||
+ Net changes from short-term rental business (including depreciation1) |
–9.0 |
–0.1 |
< –100% |
–15.9 |
5.5 |
< –100% |
||
+ Changes in net working capital |
63.9 |
50.8 |
25.7% |
109.9 |
28.6 |
> 100% |
||
+ Taxes paid |
–47.4 |
–83.9 |
43.5% |
–187.4 |
–237.4 |
21.1% |
||
+ Changes in other provisions |
–69.3 |
3.5 |
< –100% |
146.1 |
13.0 |
> 100% |
||
+ Other |
95.6 |
41.3 |
> 100% |
–51.3 |
–46.8 |
–9.4% |
||
= Cash flow from operating activities |
333.6 |
328.8 |
1.5% |
676.9 |
695.4 |
–2.7% |
||
+ Cash flow from investing activities |
–102.7 |
–99.7 |
–3.0% |
–284.1 |
–264.1 |
–7.6% |
||
thereof cash payments for capitalized development costs |
–32.4 |
–34.3 |
5.7% |
–98.6 |
–92.7 |
–6.4% |
||
thereof cash payments for purchase of other non-current assets |
–58.6 |
–72.0 |
18.5% |
–165.6 |
–196.3 |
15.7% |
||
thereof from acquisitions |
–18.3 |
–2.2 |
< –100% |
–29.4 |
–3.0 |
< –100% |
||
thereof from sale of subsidiaries/other businesses |
– |
– |
– |
– |
10.3 |
–100.0% |
||
thereof from other investing activities |
6.7 |
8.9 |
–24.5% |
9.5 |
17.7 |
–46.1% |
||
= Free cash flow |
230.9 |
229.1 |
0.8% |
392.8 |
431.3 |
–8.9% |
||
+ Cash flow from financing activities |
–507.5 |
–104.5 |
< –100% |
–825.6 |
–345.5 |
< –100% |
||
+ Effect of exchange rate changes on cash |
–0.4 |
–0.6 |
39.4% |
–11.8 |
–2.1 |
< –100% |
||
= Change in cash and cash equivalents |
–277.0 |
123.9 |
< –100% |
–444.6 |
83.7 |
< –100% |
||
|
||||||||
Analysis of capital structure
Net financial debt (non-current and current financial liabilities less cash and cash equivalents) amounted to €818.4 million as at the reporting date (December 31, 2024: €913.2 million). This equates to 0.4 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 €2,353.6 million as at September 30, 2025 (December 31, 2024: €2,497.5 million), the liabilities from the short-term rental business of €778.8 million (December 31, 2024: €814.1 million) and the liabilities from procurement leases of €756.4 million (December 31, 2024: €770.1 million) are added to net financial debt. Leverage on industrial net operating debt (INOD) stood at 1.2 times adjusted EBITDA on an annualized basis (December 31, 2024: 1.3 times).
in € million |
Sep. 30, 2025 |
Dec. 31, 2024 |
Change |
||
|---|---|---|---|---|---|
Promissory notes |
449.8 |
528.5 |
–14.9% |
||
Bonds |
496.6 |
995.2 |
–50.1% |
||
Liabilities to banks |
125.9 |
146.9 |
–14.3% |
||
Other financial debt |
88.5 |
29.6 |
> 100% |
||
Financial debt |
1,160.9 |
1,700.3 |
–31.7% |
||
Less cash and cash equivalents |
–342.5 |
–787.0 |
56.5% |
||
Net financial debt |
818.4 |
913.2 |
–10.4% |
||
Liabilities from short-term rental business |
778.8 |
814.1 |
–4.3% |
||
Liabilities from procurement leases |
756.4 |
770.1 |
–1.8% |
||
Industrial net operating debt (INOD) |
2,353.6 |
2,497.5 |
–5.8% |
||
Net defined benefit obligation |
537.6 |
666.9 |
–19.4% |
||
Industrial net debt (IND) |
2,891.2 |
3,164.4 |
–8.6% |
||
|
|
|
|
||
Adjusted EBITDA1 for the previous twelve months |
1,898.1 |
1,945.0 |
–2.4% |
||
|
|
|
|
||
Leverage on net financial debt |
0.4 |
0.5 |
– |
||
Leverage on INOD |
1.2 |
1.3 |
– |
||
Leverage on IND |
1.5 |
1.6 |
– |
||
|
|||||
Consolidated equity decreased to €6,033.7 million as at September 30, 2025 (December 31, 2024: €6,207.1 million). The decline in equity was predominantly due to currency translation losses of €319.3 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 €167.1 million and the actuarial gains and losses arising from the measurement of pensions, which amounted to a net gain of €58.0 million (after deferred taxes). The equity ratio (33.2 percent) was moderately higher at September 30, 2025 than at December 31, 2024 (33.0 percent) owing to the decrease in total assets.