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Kontron AG (formerly S&T AG)
Quarterly Report • May 6, 2025
802_rns_2025-05-06_a2aebf8a-139f-41cc-8364-964daaa03564.pdf
Quarterly Report
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KONTRON GROUP OVERVIEWS
Keyfigures
| Q1 2025 | Q1 2024 | |
|---|---|---|
| Revenues | 385.4 | 356.1 |
| EBITDA | 48.0 | 35.4 |
| Result after non-controlling interests1) | 20.1 | 16.3 |
| Earnings per share undilluted (in EUR cent) | 33 Cent | 26 Cent |
| Operating cash flow | 2.8 | -10.7 |
| Operating cash flow (adjusted)2) | 17.9 | 23.8 |
| 1) Result from continuing and discontinued operations 2) Adjusted for reduced factoring IN EUR MIO. |
31.03.2025 | 31.12.2024 |
| Cash and cash equivalents | 208.1 | 315.6 |
| Net Cash (+) / Net debt (-)3) | -191.9 | -163.1 |
| Equity | 668.8 | 652.3 |
| Equity ratio | 38.9% | 35.8% |
| Backlog | 2,186.8 | 2,077.9 |
| Project-pipeline | 7,446.6 | 6,643.1 |
| Employees4) | 7,122 | 7,263 |
3) Cash and cash equivalents less non-current and current financial liabilities
4) Number of employees on a full-time equivalent basis excluding employees on leave, interns, trainees and temporary workers
Margin Expansion Through Technology
Since the beginning of 2021, Kontron has pursued its "Vision 2030," which we first presented at our Capital Market Day in December 2020. Our goal then — and still today — is to become a globally leading technology provider in the field of the Internet of Things ("IoT").
The timing of this strategic shift was well chosen. Today, four years later, both the world and Kontron have fundamentally changed. Autonomous trains and vehicles, as well as human-independent factories, are now a reality. They are already connected within massive "grids" and are shaping our daily lives. Highly powerful AI systems collect vast amounts of data via IoT networks and make many decisions on our behalf. This development is expected to accelerate further in the coming years through the increased use of AI.
Kontron plays a significant role in shaping these developments and has consistently aligned its technology portfolio with new IoT technologies. Much has happened since 2021. In 2022, we sold our IT services business — which accounted for more than 25% of our revenues at the time — and subsequently discontinued other consistently low-margin activities. As a growth driver, we launched a new business segment in 2022: "Software + Solutions."
Over the past few years, the Software + Solutions segment has evolved into Kontron's profitability engine: 35% of revenues and already 54% of EBITDA in Q1 2025 were generated by this segment. Here, we tailor our IoT technologies to particularly lucrative end markets and develop specialized solutions. Kontron benefits from a strong and unique technological foundation and many years of accumulated know-how. Some examples:
As a market leader, we connect over 50% of all high-speed trains in Europe. Connected trains increase utilization of existing railways and reduce accidents. With the rollout of FRMCS starting in 2026, Kontron is excellently positioned to be part of the expected infrastructure investments, as we are a leading provider of this technology.
With specialized VPX systems (based on VITA 46), Kontron offers products for the networking and control of intelligent military equipment. VPX encrypts critical data to the highest security standards in military networks, with speeds of up to 40 Gbps.
Starting in 2026, 5G Network Access Devices (NADs) will be deployed to connect vehicles. NADs enable autonomous driving and vehicle telematics. In collaboration with Qualcomm, Kontron is a leading Western supplier in an otherwise China-dominated market.
Kontron has also developed its own operating system for machines. "KontronOS", focusing on cybersecurity, control, and remote maintenance, is expected to be installed in over 30 million connected applications by 2028.
In 2025 and 2026, we will continue to evaluate low-margin business areas that do not align with our IoT focus.
With nearly 3,200 engineers and over EUR 237 million invested in R&D in 2024, Kontron ranks among Europe's most innovative companies. Our many in-house developed products are proof of our ability to meet future challenges. Over the next two years, Kontron's business will likely be driven in particular by the following growth and margin drivers: Germany's special funds for infrastructure and defense, the energy transition, the rising number of cyberattacks, and countermeasures to reduce them.
Our gross margin — a key indicator of our technological strength — has already risen from 36% to 44% over the past three years. During this time, our EBITDA has nearly doubled.
We reaffirm our target of at least EUR 220 million in EBITDA for 2025. By 2030, the EBITDA margin should increase to around 20% (compared to 12% today).
Hannes Niederhauser, CEO
NOTES TO THE COURSE OF BUSINESS
Strong gross margin, solid financial position, strong earnings outlook
In Q1 of the current financial year 2025, the Kontron Group's revenues increased by 8.2% to EUR 385.4 million (PY: EUR 356.1 million). Operationally, the high-margin Software + Solutions segment continued to grow. Profitability increased significantly in the past quarter. As a result, the gross margin saw strong growth from 41.3% to 44.0%. EBITDA increased by 35.6% to EUR 48.0 million (PY: EUR 35.4 million).
Net income assignable to Kontron shareholders (after minority interests) amounted to EUR 20.1 million (PY: EUR 16.3 million), meaning that earnings per share (undiluted) increased to 33 cents in Q1 2025 (PY: 26 cents).
Results driven by the Software + Solutions segment
The group of companies is reported and managed in the three segments "Europe", "Global" and "Software + Solutions."
Business development in the three segments of the Kontron Group is as follows:
"Europe": In this segment, the Kontron Group bundles its activities to develop secure solutions for networked machines by means of a combined portfolio of hardware, software and IoT services in Europe. The focus of this segment is on Kontron Group proprietary technologies and solutions, divided into the Industrial Automation divisions, communication solutions that include 5G connectivity, medical technology and smart energy, as well as Kontron ODM and what remains from the IT services business. The headquarters of the Kontron Group are also reported in this segment.
In Q1 2025, revenues of EUR 195.5 million were achieved in the "Europe" segment (PY: EUR 191.4 million), which corresponds to a growth in revenues of 2.1%. The gross margin increased significantly to 39.2% (PY: 35.4%), EBITDA before headquarters costs amounted to EUR 16.2 million (PY: EUR 12.1 million).
"Global": The "Global" segment reports Kontron Group business activities in the two divisions North America and Asia.
Revenues in this segment amounted to EUR 55.6 million in Q1 2025 (PY: EUR 58.5 million). This slight decrease of 5% is attributable to global uncertainties regarding possible tariffs. The gross margin, on the other hand, increased significantly from 31.9% in the same quarter of the previous year to 38.0%. As a result, EBITDA before headquarters costs in this segment also improved from EUR 4.6 million to EUR 5.0 million.
"Software + Solutions": This segment comprises the group-wide software portfolio, primarily for the industrial automation sector, the Kontron operating system KontronOS, and the solutions business in the transport, avionics and defense sectors. The GreenTec division focuses on innovative solutions in the areas of solar energy, electric mobility and renewable energy. The segment has the areas with the highest margins and the highest growth rates in the Group.
In the "Software + Solutions" segment, a revenues of EUR 134.4 million was achieved in Q1 2025 (PY: EUR 106.2 million), which corresponds to a growth in revenues of 26.6%. The "Software + Solutions" segment also saw significant operational growth. The gross margin was 53.4% (PY: 57.2%), just below the previous quarters. EBITDA before headquarters costs even increased by 42.8% from EUR 18.8 million to EUR 26.8 million.
IN EUR MIO. EUROPE1) GLOBAL SOFTWARE + SOLUTIONS KONTRON GROUP Q1 2025 Q1 20242) Q1 2025 Q1 2024 Q1 2025 Q1 20242) Q1 2025 Q1 2024 Total revenues 244.0 229.3 75.9 74.5 153.6 121.4 473.5 425.2 Internal revenues -48.5 -37.8 -20.3 -16.0 -19.2 -15.3 -88.0 -69.1 Revenues 195.5 191.4 55.6 58.5 134.4 106.2 385.4 356.1 Gross profit 76.6 67.8 21.1 18.7 71.7 60.8 169.5 147.2 EBITDA 16.2 12.1 5.0 4.6 26.8 18.8 48.0 35.4 Depreciation and amortization -10.6 -7.1 -1.9 -1.8 -6.7 -4.6 -19.3 -13.4 EBIT 5.5 5.0 3.0 2.8 20.1 14.2 28.6 22.0
1) Segment "Europe" including Headquarter-charges not allocated
2) Previous year figures adjusted due to change in internal controlling
Solid financial position, strong operating cash flow
The assets and liquidity situation at the end of the first quarter of 2025 is favorable. Equity including non-controlling interest shares increased by 2.5% from EUR 652.3 million as of December 31, 2024 to EUR 668.8 million as of March 31, 2025, while the balance sheet total decreased by 5.8% from EUR 1,824 million as of December 31, 2024 to EUR 1,719 million as of March 31, 2025. The equity ratio increased significantly to 38.9% (December 31, 2024: 35.8%).
Tangible assets went down from EUR 238.1 million as of December 31, 2024 to EUR 234.7 million as of March 31, 2025. Inventories increased slightly from EUR 373.3 million as of December 31, 2024 to EUR 382.6 million as of March 31, 2025. At the same time, working capital improved again in the first three months and amounted to EUR 334.0 million as of March 31, 2025 (EUR 350.6 million as of December 31, 2024). Cash and cash equivalents went down to EUR 208.1 million (December 31, 2024: EUR 315.6 million), while non-current financial liabilities decreased from EUR 305.8 million as of December 31, 2024 to EUR 283.7 million. Net debt stood at EUR 191.9 million at the end of Q1 2025 (December 31, 2024: EUR 163.1 million).
Operating cash flow amounted to EUR 2.7 million, up from EUR -10.7 million in the previous year. Adjusted for reduced factoring, operating cash flow was EUR 17.9 million (PY: EUR 23.8 million).
The number of employees as of March 31, 2025 was 7,122 (December 31, 2024: 7,263 employees).
Strong operating growth expected for 2025
The order backlog for 2025 is positive and suggests revenues of between EUR 1.9 billion and EUR 2.0 billion compared with around EUR 1.7 billion for 2024. Operating income (EBITDA) is expected to increase once again to at least EUR 220 million.
04
CONSOLIDATED INCOME STATEMENT
| CONSOLIDATED INCOME STATEMENT IN TEUR |
Q1 2025 | Q1 2024 |
|---|---|---|
| Revenues | 385,446 | 356,111 |
| Capitalized development costs | 12,486 | 7,854 |
| Other income | 2,994 | 591 |
| Expenses for materials and other services purchased | -215,970 | -208,920 |
| Personnel expenses | -111,859 | -93,081 |
| Depreciation and amortization | -19,311 | -13,436 |
| Other operating expenses | -25,147 | -27,122 |
| Result from operations | 28,639 | 21,997 |
| Finance income | 801 | 1,880 |
| Finance expenses | -6,865 | -5,086 |
| Financial result | -6,064 | -3,206 |
| Earnings before taxes | 22,575 | 18,791 |
| Income taxes | -2,431 | -2,117 |
| Profit/loss from continuing operations | 20,144 | 16,674 |
| Profit/loss from discontinued operations | 0 | 114 |
| Net income | 20,144 | 16,788 |
| Results from the period attributable to owners of non-controlling interests | 61 | 491 |
| Results from the period attributable to owners of interests in parent company | 20,083 | 16,297 |
| Earnings per share from continuing operations (undiluted) | 0.33 | 0.26 |
| Earnings per share from continuing operations (diluted) | 0.32 | 0.25 |
| Earnings per share attributable to owners of interests in parent company (undiluted) | 0.33 | 0.26 |
| Earnings per share attributable to owners of interests in parent company (diluted) | 0.32 | 0.26 |
| Average number of shares in circulation (in thousands undiluted) | 61,386 | 61,678 |
| Average number of shares in circulation (in thousands diluted) | 63,346 | 63,783 |
STATEMENT OF OTHER COMPREHENSIVE INCOME
| STATEMENT OF OTHER COMPREHENSIVE INCOME IN TEUR |
Q1 2025 | Q1 2024 |
|---|---|---|
| Net income | 20,144 | 16,788 |
| Items that will not be reclassified to profit or loss | ||
| Remeasurement according to IAS 19 | ||
| Gains (+) / losses (-) from remeasurement | 31 | 19 |
| 31 | 19 | |
| Items that may be subsequently reclassified to profit or loss | ||
| Unrealized gains/losses from currency translation | -4,015 | 1,496 |
| -4,015 | 1,496 | |
| Other comprehensive income | -3,984 | 1,515 |
| Comprehensive income | 16,160 | 18,303 |
| of which attributable to | ||
| the owners of non-controlling interests | 49 | 500 |
| the owners of interests in parent company | 16,111 | 17,803 |
04 CONSOLIDATED BALANCE SHEET
| ASSETS IN TEUR |
31.03.2025 | 31.12.2024 |
|---|---|---|
| NON-CURRENT ASSETS | ||
| Property, plant and equipment | 234,708 | 238,083 |
| Intangible assets | 162,612 | 157,306 |
| Goodwill | 263,420 | 262,574 |
| Financial assets non-current | 12,869 | 12,738 |
| Contract assets non-current | 1,538 | 1,483 |
| Other non-current assets | 7,719 | 8,268 |
| Deferred tax assets | 64,072 | 64,311 |
| 746,938 | 744,763 | |
| CURRENT ASSETS | ||
| Inventories | 382,565 | 373,289 |
| Trade receivables | 215,595 | 249,649 |
| Contract assets current | 81,516 | 71,585 |
| Financial assets current | 15,563 | 17,681 |
| Other receivables and assets current | 68,187 | 51,088 |
| Cash and cash equivalents | 208,146 | 315,637 |
| 971,572 | 1,078,929 | |
| Total assets | 1,718,510 | 1,823,692 |
| EQUITY AND LIABILITIES IN TEUR EQUITY |
31.03.2025 | 31.12.2024 |
| Subscribed capital | 63,861 | 63,861 |
| Capital reserves | 102,578 | 102,246 |
| Accumulated results | 542,777 | 522,694 |
| Other reserves | -10,168 | -6,196 |
| Treasury shares | -50,146 | -50,146 |
| Equity attributable to owners of interests in parent company | 648,902 | 632,459 |
| Non-controlling interests | 19,868 | 19,819 |
| 668,770 | 652,278 | |
| NON-CURRENT LIABILITIES | ||
| Financing liabilities non-current | 283,729 | 305,760 |
| Other financial liabilities non-current | 93,383 | 97,368 |
| Contract liabilities | 5,260 | 5,657 |
| Deferred tax liabilities | 13,218 | 11,063 |
| Provisions non-current | 33,262 | 33,085 |
| 428,852 | 452,933 | |
| CURRENT LIABILITIES | ||
| Financing liabilities current | 116,315 | 172,985 |
| Trade payables | 264,188 | 272,378 |
| Contract liabilities | 77,039 | 91,198 |
| Other financial liabilities current | 50,275 | 48,141 |
| Provisions current | 29,031 | 39,470 |
| Other liabilities current | 84,040 | 94,309 |
| 620,888 | 718,481 | |
| Total equity and liabilities | 1,718,510 | 1,823,692 |
CONSOLIDATED CASH FLOW STATEMENT
| CONSOLIDATED STATEMENT OF CASH FLOWS IN TEUR |
Q1 2025 | Q1 2024 |
|---|---|---|
| CASHFLOW FROM OPERATING ACTIVITIES FROM CONTINUING AND DISCONTINUED OPERATIONS | ||
| Earnings before tax from continuing and discontinued operations | 22,575 | 18,905 |
| Depreciation and amortization | 19,311 | 13,436 |
| Interest expenses | 6,865 | 5,086 |
| Interest and other income from the disposal of financial assets | -801 | -1,994 |
| Increase/decrease of provisions | -10,367 | -2,687 |
| Gains/losses from the disposal of non-current non-financial assets | -20 | 81 |
| Changes in inventories | -9,156 | 2,030 |
| Changes in trade receivable and contract assets | 24,140 | 22,082 |
| Changes in other receivables and assets | -14,333 | 7,555 |
| Changes in trade payable and contract liabilities | -22,841 | -63,375 |
| Changes in other liabilities | -3,085 | -13,922 |
| Other non-cash income and expenses | -1,618 | 4,199 |
| Cash and cash equivalents from operations | 10,670 | -8,604 |
| Income taxes paid | -7,899 | -2,099 |
| Cashflow from operating activities | 2,771 | -10,703 |
| CASHFLOW FROM INVESTING ACTIVITIES | ||
| Payments to acquire property, plant and equipment and intangible assets | -17,363 | -11,442 |
| Payments received for the disposal of property, plant and equipment and intangible assets | 546 | 152 |
| Disposal/purchase of financial instruments | 561 | -2,133 |
| Payments to acquire subsidiaries less cash assumed and plus current account liabilities assumed | -1,100 | -64,582 |
| Proceeds (net) from disposal of discontinued operations | 0 | -392 |
| Interest income | 658 | 1,756 |
| Cash flow from investing activities | -16,698 | -76,641 |
| CASHFLOW FROM FINANCING ACTIVITIES | ||
| Increase in financing liabilities and financial liabilities | 485 | 206,037 |
| Decrease in financing liabilities and financial liabilities | -87,644 | -87,129 |
| Interests paid | -5,068 | -3,039 |
| Acquisition of non-controlling interests | 0 | -46 |
| Payments for acquisition of treasury shares | 0 | -1,731 |
| Cash flow from financial activities | -92,227 | 114,092 |
| Changes in exchange rates | -1,337 | -2,819 |
| Changes in cash and cash equivalents | -107,491 | 23,929 |
| Cash and cash equivalents as of the beginning of the period | 315,637 | 332,235 |
| Cash and cash equivalents as of the end of the period | 208,146 | 356,164 |
FINANCIAL CALENDAR
2025
| 06.05.2025 | Q1-quarterly statement 2025 (Earnings-Call Q1 2025) |
|---|---|
| 13.05.2025 | Pan European Small and Mid-Cap Conference (13.- 15.5.2025) |
| 14.05.2025 | HAIB Stockpicker Summit 2025 - Hamburg |
| 11.06.2025 | Annual General Meeting |
| 17.06.2025 | Dividend ex-date |
| 18.06.2025 | Dividend record date |
| 20.06.2025 | Dividend payment date |
| 06.08.2025 | Half-year report 2025 (Earnings-Call Q2 2025) |
| 03.09.2025 | Corporate Conference, Frankfurt (03.09.-04.09.2025) |
| 22.09.2025 | September Baader Investment Conference, Munich (22.09.-25.09.2025) |
| 05.11.2025 | Q3-quarterly statement 2025 (Earnings-Call Q3 2025) |
| 24.11.2025 | EKF, Frankfurt (24.11.-26.11.2025) |
Further details available under https://www.kontron.com/en/group/investors/financial-calendar
Austria (Headquarters)
Kontron AG, 4020 Linz, Industriezeile 35 Investor Relations: +43 732 7664 153 | [email protected]
www.kontron.com
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