Krones Aktiengesellschaft (0LQ4), the Germany-based manufacturer of filling and packaging machinery for the beverage and food industries, has reported moderate growth and improved profitability for the first nine months of 2026, despite persistent macroeconomic headwinds. Order intake rose 2.9% year on year to €4,223.6 million, while reported revenue remained broadly stable at €4,099.7 million. However, the company has cut its full-year 2026 revenue growth guidance to 1–2% from a prior range of 3–5%, citing adverse geopolitical and economic conditions affecting customer spending in the fourth quarter.

Key Points

  • Krones Aktiengesellschaft (0LQ4), listed on the Frankfurt Regulated Market (Prime Standard) and member of the MDAX index
  • Order intake grew 2.9% to €4,223.6 million in the first three quarters of 2026, with a book-to-bill ratio of 1.03
  • EBITDA margin improved to 11.1% (prior year: 10.5%); full-year 2026 EBITDA margin guidance of 10.7–11.1% retained; revenue growth guidance cut to 1–2%
  • Investors may be watching Krones' fourth-quarter trading conditions and whether the revised 2028 medium-term revenue target of €6.0–6.2 billion can be achieved

Krones' Order Backlog Rises 3.0% to €4,314.3 Million Despite Geopolitical Cost Pressures

Krones' order intake reached €4,223.6 million in the first nine months of 2026, a 2.9% increase from €4,104.7 million in the same period of 2025. The company attributed this to robust customer willingness to invest, supported by an internationally diversified customer and product portfolio that helped offset the impact of rising operating costs linked to geopolitical uncertainty. The order backlog grew 3.0% from the start of the year to €4,314.3 million at the end of September 2026, up from €4,190.4 million at 31 December 2025. The announcement notes that a portion of the backlog will convert to revenue at the end of or beyond 2027.

EBITDA Rises 5.2% to €453.1 Million as Consolidated Net Income Reaches €219.5 Million

Krones improved its EBITDA by 5.2% year on year to €453.1 million for the first nine months of 2026, lifting the reported EBITDA margin from 10.5% to 11.1%. The company noted a positive earnings impact of approximately €10 million from US tariff refunds; adjusted for this, the EBITDA margin was 10.8%. Earnings before taxes rose 2.1% to €308.7 million, while consolidated net income increased 2.7% to €219.5 million, equating to earnings per share of €6.94. ROCE for the period came in at 17.6%, compared with 19.5% in the prior year, reflecting higher capital deployment. Net cash stood at €410.2 million and the equity ratio improved to 44.8%.

Free Cash Flow Recovers to +€25.8 Million in Third Quarter After Negative First-Half Position

Free cash flow, excluding merger and acquisition activities, was −€5.0 million across the first nine months of 2026, compared with +€80.2 million in the same period of 2025, primarily reflecting significantly higher capital investment. However, the company highlighted a sequential recovery, with free cash flow improving from −€21.3 million in the second quarter to +€25.8 million in the July-to-September period. Krones described its financial and capital structure as very stable, with its equity ratio rising to 44.8% as of 30 September 2026 from 42.1% a year earlier.

Krones Cuts 2028 Medium-Term Revenue Target to €6.0–6.2 Billion from Approximately €7 Billion

Alongside the quarterly results, Krones confirmed it had revised its medium-term 2028 revenue target to between €6.0 billion and €6.2 billion, reduced from the previous target of approximately €7 billion, citing the ongoing challenging macroeconomic and geopolitical environment. The 2028 EBITDA margin target was narrowed to 11–12% from 11–13%, while the ROCE target of more than 20% was retained. For the current financial year, the Executive Board maintained its EBITDA margin guidance of 10.7–11.1% and ROCE guidance of 19–20%, while lowering currency-adjusted revenue growth expectations to 1–2%. Investors may be watching whether fourth-quarter trading stabilises ahead of the full-year results.