KONECRANES PLC HALF-YEAR FINANCIAL REPORT, JANUARY-JUNE 2025 JULY 24, 2025, 12:30 PM EEST
Konecranes Plc's Half-year financial report, January-June 2025: Strong performance continued
This release is a summary of Konecranes Plc's Half-year financial report, January-June 2025. The complete report is attached to this release in pdf format and is also available on Konecranes' website at www.konecranes.com.
The figures presented in this report are unaudited. Figures in brackets, unless otherwise stated, refer to the same period a year earlier.
SECOND QUARTER 2025 HIGHLIGHTS
- Order intake EUR 1,096.8 million (967.7), +13.3 percent (+17.1 percent on a comparable currency basis), order intake decreased in Industrial Service, but increased in Industrial Equipment and Port Solutions
- Industrial Service annual agreement base value EUR 331.3 million (331.8), -0.1 percent (+4.5 percent on a comparable currency basis)
- Order book EUR 2,914.8 million (2,987.1) at the end of June, -2.4 percent (+0.2 percent on a comparable currency basis)
- Sales EUR 1,052.4 million (1,031.5), +2.0 percent (+5.3 percent on a comparable currency basis), sales decreased in Industrial Service and Industrial Equipment, but increased in Port Solutions
- Comparable EBITA margin 14.3 percent (14.3) and comparable EBITA EUR 150.3 million (147.3); the comparable EBITA margin increased to 22.6 percent (22.1) in Industrial Service, decreased to 6.3 percent (9.8) in Industrial Equipment and increased to 12.6 percent (10.5) in Port Solutions.
- Operating profit EUR 136.9 million (137.8), 13.0 percent of sales (13.4)
- Earnings per share (diluted) EUR 1.27 (1.26)
- Free cash flow EUR 118.4 million (21.5)
JANUARY-JUNE 2025 HIGHLIGHTS
- Order intake EUR 2,159.0 million (1,876.8), +15.0 percent (+15.8 percent on a comparable currency basis)
- Sales EUR 2,036.1 million (1,944.6), +4.7 percent (+5.3 percent on a comparable currency basis)
- Comparable EBITA margin 12.7 percent (12.8) and comparable EBITA EUR 259.3 million (249.0); the comparable EBITA margin increased in Industrial Service and Port Solutions, but decreased in Industrial Equipment
- Operating profit EUR 236.9 million (226.9), 11.6 percent of sales (11.7), items affecting comparability totaled EUR 5.0 million (6.7), mainly comprising of restructuring costs
- Earnings per share (diluted) EUR 2.19 (2.00)
- Free cash flow EUR 177.1 million (70.3)
- Net debt EUR 166.1 million (437.7) and gearing 9.0 percent (26.8)
DEMAND OUTLOOK
Our demand environment within industrial customer segments has remained good and continues on a healthy level. However, the demand-related uncertainty and volatility due to the geopolitical and trade policy tensions remain.
Global container throughput continues on a high level, and long-term prospects related to global container handling remain good overall.
FINANCIAL GUIDANCE
Konecranes expects net sales to remain approximately on the same level in 2025 compared to 2024. Konecranes expects the full-year 2025 comparable EBITA margin to remain approximately on the same level or to improve from 2024.
KEY FIGURES
4-6/ 2025 | 4-6/ 2024 | Change percent | 1-6/ 2025 | 1-6/ 2024 | Change percent | R12M | 1-12/ 2024 | |
Orders received, MEUR | 1,096.8 | 967.7 | 13.3 | 2,159.0 | 1,876.8 | 15.0 | 4,281.7 | 3,999.6 |
Order book at end of period, MEUR | 2,914.8 | 2,987.1 | -2.4 | 2,888.4 | ||||
Sales total, MEUR | 1,052.4 | 1,031.5 | 2.0 | 2,036.1 | 1,944.6 | 4.7 | 4,318.5 | 4,227.0 |
Comparable EBITDA, MEUR 1 | 175.1 | 168.9 | 3.7 | 311.2 | 293.3 | 6.1 | 659.6 | 641.7 |
Comparable EBITDA, % 1 | 16.6% | 16.4% | 15.3% | 15.1% | 15.3% | 15.2% | ||
Comparable EBITA, MEUR 1 | 150.3 | 147.3 | 2.1 | 259.3 | 249.0 | 4.1 | 561.9 | 551.6 |
Comparable EBITA, % 1 | 14.3% | 14.3% | 12.7% | 12.8% | 13.0 % | 13.1% | ||
Comparable operating profit, MEUR 1 | 141.6 | 139.7 | 1.3 | 241.9 | 233.6 | 3.5 | 528.9 | 520.7 |
Comparable operating margin, % 1 | 13.5% | 13.5% | 11.9% | 12.0% | 12.2% | 12.3% | ||
Operating profit, MEUR | 136.9 | 137.8 | -0.7 | 236.9 | 226.9 | 4.4 | 521.4 | 511.4 |
Operating margin, % | 13.0% | 13.4% | 11.6% | 11.7% | 12.1% | 12.1% | ||
Profit before taxes, MEUR | 132.6 | 131.9 | 0.5 | 230.3 | 211.4 | 8.9 | 504.1 | 485.3 |
Net profit for the period, MEUR | 100.4 | 99.7 | 0.7 | 173.9 | 159.0 | 9.4 | 383.3 | 368.4 |
Earnings per share, basic, EUR | 1.27 | 1.26 | 0.7 | 2.20 | 2.01 | 9.4 | 4.84 | 4.65 |
Earnings per share, diluted, EUR | 1.27 | 1.26 | 0.8 | 2.19 | 2.00 | 9.5 | 4.83 | 4.63 |
Gearing, % | 9.0% | 26.8% | 9.9% | |||||
Net debt / Comparable EBITDA, R12M 1 | 0.3 | 0.7 | 0.3 | |||||
Return on capital employed, %, R12M | 21.3% | 20.3% | ||||||
Comparable return on capital employed, %, R12M 2 | 21.8% | 20.8% | ||||||
Free cash flow, MEUR | 118.4 | 21.5 | 177.1 | 70.3 | 534.1 | 427.2 | ||
Average number of personnel during the period | 16,692 | 16,587 | 0.6 | 16,656 |
1) Excluding items affecting comparability, see also note 11 in the summary financial statements
2) ROCE excluding items affecting comparability, see also note 11 in the summary financial statements
CEO Marko Tulokas:
This is my first quarter as the new CEO of Konecranes and I am pleased to present a strong set of results, particularly in our Business Area Port Solutions. During my 20 years at the company, it has gone through different phases, and it is great to see where Konecranes is at today. I want to thank the whole organization for their excellent work and strong support during my first months. As the new CEO, I want to further reinforce our strengths - a strong customer focus with a wide offering, technology leadership and inspiring company culture.
In the second quarter of 2025, Konecranes' sales increased by 5.3% in comparable currencies versus the previous year to EUR 1.05 billion. Profitability remained strong and comparable EBITA margin reached the same record-high level of 14.3% achieved in the second quarter of 2024. Additionally, our order intake in comparable currencies was 17.1% higher versus a year ago, and our order book totaled EUR 2.91 billion at the end of the quarter. These numbers reflect the structural improvements we have implemented over the years as well as our successful business model and resilience amidst the prevailing geopolitical turbulence.
During the second quarter, demand for our products remained healthy in general, and our financial performance was supported by a good operating leverage. Despite the tariff-related uncertainty, we delivered good results and continued to benefit from our global business model.
In our Business Area Industrial Service, sales increased by 2.1% in comparable currencies and amounted to EUR 386.1 million in the second quarter. Comparable EBITA margin increased to 22.6% and was supported by good cost management. I am pleased that the agreement base value continued to grow and was 4.5% higher in comparable currencies - this development is well in line with our long-term strategic plans to increase the agreement base.
In our Business Area Industrial Equipment, external sales decreased by 4.7% in comparable currencies and amounted to EUR 280.2 million in the second quarter. External order intake, however, rose by 11.7% in comparable currencies. Comparable EBITA margin decreased to 6.3% and was mainly driven by lower volumes.
In our Business Area Port Solutions, performance was excellent in the second quarter. Sales increased by 18.0% in comparable currencies to EUR 407.7 million and order intake grew by 41.8% in comparable currencies. Quarterly fluctuation in the order intake is a normal feature of this business. The comparable EBITA margin reached an all-time high level of 12.6% and was positively impacted by good operating leverage due to higher volumes. The order book totaled EUR 1.57 billion at the end of the quarter.
The operating environment continues to be impacted by geopolitical tensions and volatility, especially related to tariffs, resulting in a higher level of uncertainty, particularly in North America. Consequently, we have seen somewhat cautious behavior within our industrial customers, both in timing of new orders as well as delays in project delivery acceptance.
We reiterate our financial guidance for this year. We expect our net sales to remain approximately on the same level in 2025 compared to 2024. We also expect the full-year 2025 comparable EBITA margin to remain approximately on the same level or to improve from 2024.
We hosted our Capital Markets Day in May and raised our long-term financial targets. Our EBITA margin target range was increased from 12-15% to 13-16%, reflecting our solid confidence towards the future. We aim to reach this target as soon as possible, but no later than in 2029, and today's earnings show we are well on track to meet these targets.
Finally, I would like to emphasize that Konecranes is well positioned in the current global landscape with its clear competitive advantages. We have an excellent team in place, our strong balance sheet provides financial flexibility, and the market continues to provide opportunities for expansion and growth. Together, we are shaping the next generation of material handling for a smarter, safer and better world.
ANALYST AND PRESS BRIEFING
A live international webcast and telephone conference for analysts, investors and media will be arranged today at 2:00 p.m. EEST. The event will be held in English. The half-year financial report will be presented by President and CEO Marko Tulokas and CFO Teo Ottola. Questions may be presented at the end of the conference. The conference will be recorded, and an on-demand version of the conference will be published on the company's website later during the day.
The webcast can be watched through the following link:
https://konecranes.events.inderes.com/q2-2025
To ask questions, the telephone conference can be joined by registering through the following link:
https://palvelu.flik.fi/teleconference/?id=50051645
Phone numbers and the conference ID to access the conference will be provided after the registration. In case you would like to ask a question during the conference, please dial *5 on your telephone keypad to enter the question queue.
Questions can also be presented in writing through the question form, while watching the webcast.
NEXT REPORT
Konecranes Plc plans to publish its Interim report, January-September 2025 on October 23, 2025.
KONECRANES PLC
Linda Häkkilä
Vice President, Investor Relations
FURTHER INFORMATION
Linda Häkkilä,
Vice President, Investor Relations,
tel. +358 (0) 20 427 2050
IMPORTANT NOTICE
The information in this release contains forward-looking statements, which are information on Konecranes' current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "estimate," "plan," "project," "will," "can have," "likely," "should," "would," "could" and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond Konecranes' control that could cause Konecranes' actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Konecranes' present and future business strategies and the environment in which it will operate in the future.
Konecranes is a global leader in material handling solutions, serving a broad range of customers across multiple industries. We consistently set the industry benchmark, from everyday improvements to the breakthroughs at moments that matter most, because we know we can always find a safer, more productive and sustainable way. That's why, with around 16,500 professionals in over 50 countries, Konecranes is trusted every day to lift, handle and move what the world needs. In 2024, Group sales totalled EUR 4.2 billion. Konecranes shares are listed on Nasdaq Helsinki (symbol: KCR).
DISTRIBUTION
Nasdaq Helsinki
Major media
www.konecranes.com
