Netherlands · Delayed Price · Currency is EUR Kendrion Earnings Call Transcripts
Fiscal Year 2025
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2025 was transformative, with the company completing its automotive exit, achieving record margins and ROIC, and strengthening its balance sheet. Strong cash flow enabled debt reduction, higher dividends, and a share buyback, while a robust project pipeline and innovation support a positive outlook for 2026 and beyond.
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Q3 2025 saw improved profitability and margins despite flat revenue, with a strengthened balance sheet following the China divestment. Special dividend and share buyback were announced, and the company remains focused on margin improvement, innovation, and disciplined investment for sustainable growth.
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Divestment of the China business completes the shift to a pure-play industrial focus, with proceeds used for shareholder returns and reinvestment. Q2 saw strong profitability and margin gains, and medium-term targets remain on track despite economic uncertainties.
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Q1 2025 saw 4% revenue growth and a 7% EBITDA increase, with strong mobility and industrial brakes performance offsetting IAC weakness. Margin improvement and cost savings supported profitability, while the local-for-local strategy and divestment proceeds reduced net debt and leverage.
Fiscal Year 2024
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Transformed into a pure-play industrial company after divesting automotive, with 2024 revenue down 2% and EBITDA from continued operations down 11% year-over-year. Focus is on margin improvement, cost savings, and growth in China, targeting a 15%-18% EBITDA margin from 2025.
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Q3 2024 saw stable revenue and profitability in continuing operations, with a strategic shift to pure industrial focus following the sale of the automotive business. Cost-saving measures and a strengthened balance sheet position the company for future growth, though near-term market conditions remain challenging.
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The company is transforming into a pure-play industrial business, divesting most automotive activities to focus on Industrial Brakes and Actuators & Controls, targeting 5%-8% annual growth and at least 15% EBITDA margin. China is expected to deliver double-digit growth, and strict project selection and disciplined capital allocation underpin the new strategy.
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Revenue from continued operations declined due to weak industrial markets, but Automotive in China grew strongly. EBITDA margins improved through cost controls, and the divestment of most Automotive activities is set to enhance profitability and reduce debt.