ECHING (dpa-AFX) - IoT technology company Kontron AG (KOTRF.PK, KOTFY.PK), on Tuesday, reported strong Q1 results, underscoring its commitment to strategic expansion and operational efficiency.
Kontron reported an 8.2% year-over-year revenue increase, reaching EUR 385.4 million compared to EUR 356.1 million in the previous year. This growth was accompanied by a significant improvement in revenue quality, reflected in a gross margin increase from 41.3% to 44.0%, resulting in a 15.1% enhancement in value creation.
Much of this growth was driven by the Software + Solutions segment, which accounted for 34.9% of total revenue, up from 29.8% last year. The segment also saw an increase in its EBITDA margin, reaching 19.9% compared to 17.7% reported last year.
Operating profit (EBITDA) surged by 35.6%, reaching EUR 48.0 million, compared to EUR 35.4 million in Q1 2024. The EBITDA margin improved to 12.4%, reflecting Kontron's strategic emphasis on high-margin business segments.
Additionally, group earnings after minority interests increased to EUR 20.1 million, up from EUR 16.3 million last year, translating to EUR 0.33 per share versus EUR 0.26 earned a year ago.
Kontron continued to build on its order backlog, which increased to EUR 2,187 million, up from EUR 2,078 million at the end of 2024. The project pipeline grew to EUR 7,447 million, underscoring significant growth potential beyond 2025.
The company's book-to-bill ratio for Q1 stood at 1.28, reflecting strong demand for Kontron's offerings.
Looking ahead, Kontron expects significant EBITDA growth in 2025, targeting at least EUR 220 million.
Hannes Niederhauser, CEO of Kontron AG, stated, 'We've had a strong start to fiscal year 2025. As in previous quarters, Q1 clearly shows that Kontron is delivering on the targeted margin improvements through growth in the Software + Solutions segment. We will continue along this path, including corresponding portfolio adjustments.'
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