Krones continued its profitable growth trajectory in the third quarter of 2025, reporting higher earnings despite a challenging macroeconomic backdrop. The company cited resilient customer investment activity and markets that are generally less exposed to cyclical swings. Order intake increased both sequentially and year on year, the order backlog remained at a very high level, and revenue growth over the first nine months aligned with the annual plan. Profitability benefited from improved production efficiency and the execution of performance and cost optimisation measures. Despite high single-digit million euro expenses related to the drinktec trade fair, the company delivered a disproportionate increase in EBITDA and a slightly higher EBITDA margin. Earnings before taxes, net income and earnings per share rose over the first three quarters, while free cash flow improved compared with the first half. Net cash increased year on year and ROCE advanced. Against this backdrop, Krones confirmed its full-year 2025 targets for revenue growth, EBITDA margin and ROCE, while noting continued uncertainties around global trade policies, geopolitical risks and supply chains.
Order intake, backlog and revenue
Between July and September 2025, order intake rose by 6.2% versus the preceding quarter to €1,374.3 million. Compared with the third quarter of the previous year, when order intake reached €1,323.2 million, this represented an increase of 3.9%. For the first nine months, order intake totalled €4,104.7 million, essentially matching the very high level of the prior year at €4,116.1 million.
As of 30 September 2025, the order backlog stood at €4,286.8 million, on par with the end of 2024 at €4,289.5 million. This sustained backlog supports planning certainty and secures capacity utilisation in the lines and project business until mid of the third quarter of 2026.
Third-quarter revenue increased by 4.7% year on year to €1,380.9 million, resulting in a book-to-bill ratio, the ratio of order intake to revenue, of 1.00 in the quarter. Over the first nine months, revenue rose by 6.0% to €4,107.4 million, in line with target. The company noted that revenue was affected by the weakness of the dollar against the euro.
Profitability and cash flow
Third-quarter profitability benefited from increased efficiency in production and ongoing strategic measures to improve performance and cost structures. Expenses related to the drinktec trade fair were in the high single-digit million euro range and weighed on the period’s earnings. Despite this effect, EBITDA increased to €142.2 million between July and September 2025, up from €134.9 million a year earlier. The EBITDA margin improved to 10.3% compared with 10.2% in the prior-year quarter. Excluding drinktec expenses, the third-quarter EBITDA margin was at the upper end of the full-year 2025 target range of 10.2% to 10.8%.
For the first nine months of 2025, the EBITDA margin rose year on year from 10.1% to 10.5%. The effects of the acquisition of Netstal Maschinen AG had a slight dilutive impact on the margin in the first three quarters.
Earnings before taxes increased by 9.7% to €302.3 million between January and September 2025, compared with €275.6 million in the prior-year period. The EBT margin rose from 7.1% to 7.4%. Consolidated net income for the first nine months amounted to €213.7 million, up 6.5% year on year, and earnings per share improved to €6.75 from €6.35.
Free cash flow excluding M&A activities reached €80.2 million in the first nine months, an improvement of €33.5 million after the third quarter compared with the first half of 2025. In the same period of 2024, free cash flow excluding M&A was €145.0 million, described as exceptionally high. Net cash, defined as cash and cash equivalents less bank debt, was €361.2 million at the end of September 2025, up from €301.9 million a year earlier. ROCE increased to 19.5% in the first three quarters of 2025 compared with 18.3% in the prior year.
Outlook and guidance for 2025
Krones remains realistically optimistic for the 2025 financial year following a positive performance in the first nine months. The company continues to see a challenging business environment, with uncertainty stemming from tariff policies and trade agreements between the USA and key trading partners, geopolitical risks in Europe, the Middle East and other regions, and potential material shortages or supply chain disruptions.
Based on the expected development of relevant markets and year-to-date results, Krones confirmed its full-year 2025 financial targets. The Executive Board anticipates consolidated revenue growth of 7% to 9%. Supported by increasing revenue, a disciplined pricing strategy and ongoing efficiency and cost optimisation measures, the company forecasts an EBITDA margin at group level of 10.2% to 10.8%. For ROCE, the company expects a range of 18% to 20% in the current financial year.
Krones has published the full quarterly statement for the first three quarters of 2025 online at: https://www.krones.com/media/downloads/Q3_2025_e.pdf
