Report for the second quarter 2025

• Krones’ customers in the food and beverage industry continue to show robust willingness to invest. In the first half of 2025, despite the macroeconomic uncertainties, the contract value of orders fell only slightly compared to the previous year’s very high figure by 2.2% to €2,730.4 million (previous year: €2,792.9 million).
   
• Krones increased revenue between January and June by 6.7% to €2,726.5 million. Due to calendar effects, the pace of growth slowed as expected in the second quarter.
   
• EBITDA rose by 12.6% to €288.5 million in the first half of the year. The EBITDA margin thus improved significantly from 10.0% in the previous year to 10.6%, which is inside the guidance range for the current financial year.
   
• Krones increased ROCE from 18.8% to 19.0% in the first six months of 2025 and generated free cash flow before M&A activities of €46.7 million (previous year: €127.0 million).
   
• Following the positive trend in the first half-year, and despite the global uncertainties, Krones has confirmed the guidance for the full year 2025. The company expects revenue growth of 7% to 9%, an EBITDA margin of 10.2% to 10.8% and ROCE of 18% to 20%.

Excel table download

* PP = percentage points
** Cash and cash equivalents less debt
*** Average of last 4 quarters

Excel table download

Dear shareholders and friends of Krones,

After a strong first quarter 2025, our business developed according to plan from April to June. In total, Krones’ revenue increased by 6.7% year on year to €2,726.5 million in the first six months of 2025. The company’s profitability also further improved. The EBITDA margin increased from 10.0% in the prior-year period to 10.6%. Order intake remained robust at a high level.

Krones confirms targets for 2025 despite macroeconomic uncertainties

We remain realistically optimistic for the second half-year and confirm our ­financial targets for 2025. In view of the challenging macroeconomic environment, this is not a given. Alongside the ongoing Russia-Ukraine conflict and the disputes in the Middle East, the US administration’s tariff policy remains a major uncertainty factor for the development of the global economy. Experts are certain that the US tariff measures will have a negative impact on global economic growth, at least in 2025. In April, the International Monetary Fund (IMF) lowered its growth forecast for 2025 from 3.3% to 2.8%. At the end of July, the IMF revised this forecast slightly upwards to 3.0%.

Flexibility remains the top priority – Krones well prepared for possible scenarios

Krones’ markets are generally less affected by cyclical fluctuations. Nevertheless, Krones is not entirely unaffected by the uncertain macroeconomic and geopolitical climate. The uncertainties triggered by US tariff policy influenced our customers' final investment decisions. It is not yet possible to predict to what extent the latest negotiation outcomes between the EU and the USA will contribute in influencing customers’ investment decisions.

With our established strategy of further expanding our global footprint and continuing to invest in automation at our German sites, we are enhancing the company’s flexibility and resilience. We are also optimising our cost and organisational structure. Krones uses forward-looking scenario planning in order to 
be able to react flexibly. We have already taken initial action in response to the current US tariff policy.

drinktec trade fair highlight: inspiring customers with innovations

The drinktec trade fair – the world’s leading fair for the beverage and liquid food industry – takes place in Munich from 15 to 19 September. Krones will be showcasing innovations from across its business areas while holding many valuable discussions with clients from all over the world. Krones’ absolute highlight at the fair is our highly automated new line generation. In this groundbreaking ­development, we have combined numerous innovations and set new standards in terms of efficiency, sustainability and digitalisation.

The entire Krones team boasts a healthy mix of innovativeness, motivation, reliability and flexibility. We will also successfully navigate the current challenges, keep the company on a path of sustainable profitable growth, and consistently live and implement our vision: Sustainable and affordable beverages, food and essentials for everyone and everywhere.

Christoph Klenk
CEO

Krones confirms full-year financial targets for 2025 despite global uncertainties

Krones remains realistically optimistic for the full year 2025, despite the difficult global economic situation. The first half of 2025 has confirmed our assessment. From January to June, the company increased revenue and earnings as planned compared to the same period of the previous year. A large order backlog ensures production capacity utilisation through to the middle of 2026. Our positive overall assessment is also supported by the robust demand for Krones’ products and services.

However, the business environment nevertheless remains challenging for ­Krones. The tariff conflict has significantly clouded the overall global economic outlook. Uncertainty about the impact of the various tariff policies on world trade and global growth at least temporarily makes companies worldwide less willing to invest. It is not yet possible to predict to what extent the latest negotiation outcomes between the EU and the USA will contribute in influencing customers’ investment decisions in the short term. Geopolitical risks also persist in Europe, the Middle East and other parts of the world. Material shortages and problems in global supply chains as a result of trade conflicts and military action remain sources of uncertainty.

Overall, based on the current expected development of the markets relevant to Krones and the positive first half-year, we confirm our financial targets for 2025.

We expect consolidated revenue growth of 7% to 9%. On the basis of increasing revenue, an ongoing disciplined price strategy and continued implementation of the efficiency and cost optimisation measures, Krones plans to improve profitability again this year compared to 2024. At group level for 2025, the company forecasts an EBITDA margin of 10.2% to 10.8%. For the third performance target, return on capital employed (ROCE), Krones expects between 18% and 20% in the current financial year.
 

The forecast for Krones’ individual segments also remains unchanged relative to the information provided in the Annual Report 2024 and is as follows: