Krones reported continued positive performance in the second quarter of 2026, supported by what the company described as a resilient business model and ongoing willingness among customers to invest. In the first six months of the year, order intake rose by 4.5% to €2,852.5 million, compared with €2,730.4 million in the prior-year period. In the second quarter alone, order intake increased by 3.5% to €1,340.4 million, after €1,294.5 million a year earlier. Revenue in the first half was affected by currency translation effects, but adjusted for these effects it increased by 1.8%. Reported revenue amounted to €2,714.9 million, compared with €2,726.5 million in the previous year. Based on a book-to-bill ratio of 1.05 for the first six months, Krones expects revenue growth to accelerate in the second half of 2026.
Order intake remains above the previous year
Following strong customer orders in the first quarter, Krones said its customers continued to show robust willingness to invest from April to June 2026. At €1,340.4 million in the second quarter, order intake exceeded the previous year’s level of €1,294.5 million by 3.5%.
For the first six months of 2026, order intake increased by 4.5% to €2,852.5 million. According to the company, the positive trend reflects generally intact customer demand. At the same time, overall economic uncertainties and general cost trends are having some impact on orders across Krones’ diversified product and customer portfolio. The company said it has so far been able to offset this effect thanks to its internationally balanced customer base and extensive product range.
The book-to-bill ratio, the ratio of order intake to revenue, reached 1.05 in the first half of 2026. The order backlog increased by 3.3% between January and June to €4,328.0 million, compared with €4,190.4 million on 31 December 2025. Krones stated that the current order backlog means production capacity utilisation in the lines and projects business is largely ensured for the full year 2026.
Revenue affected by currency translation
Despite ongoing and further increasing macroeconomic challenges, Krones improved revenue in the second quarter of 2026. From April to June, revenue rose by 1.5%, from €1,316.5 million in the previous year to €1,335.8 million.
In the first six months of 2026, revenue amounted to €2,714.9 million, compared with €2,726.5 million in the prior-year period. Currency translation effects negatively impacted revenue by around €60 million in the first half of the year. Adjusted for these effects, revenue from January to June 2026 rose by 1.8% year on year. On the basis of the positive order intake trend, Krones expects growth to accelerate in the second half of the year.
EBITDA margin improves to 10.8%
All key earnings metrics at Krones were higher in the second quarter of 2026 than in the previous year. Earnings before interest, taxes, depreciation and amortisation, EBITDA, increased from €139.2 million to €143.9 million. The EBITDA margin consequently improved from 10.6% to 10.8%.
For the period from April to June 2026, the company reported earnings before taxes of €99.6 million, compared with €97.6 million in the previous year, and consolidated net income of €70.4 million, after €69.9 million a year earlier.
In the first half of 2026, EBITDA rose from €288.5 million in the previous year to €292.9 million. The EBITDA margin improved from 10.6% to 10.8%, which placed it within the full-year 2026 target range of 10.7% to 11.1%.
Krones cited the implementation of strategic measures to improve performance and cost structures as a key reason for the increase in profitability. Prices for Krones’ machines and lines remained stable in the first six months of 2026.
In total, Krones generated consolidated net income of €138.9 million in the first half of 2026, compared with €145.8 million in the previous year. This equates to earnings per share of €4.39, compared with €4.60 a year earlier.
Free cash flow improves in the second quarter
In the second quarter of 2026, Krones significantly improved free cash flow adjusted for M&A activities by €97.2 million, from −€118.5 million in the previous year to −€21.3 million. Over the first six months, the company generated free cash flow excluding M&A activities of −€30.8 million, compared with €46.7 million in the previous year.
Krones stated that it continues to have a very solid financial and capital structure. Net cash, defined as cash and cash equivalents less bank debt, stood at €404.5 million at the end of June 2026, compared with €375.2 million a year earlier.
Return on capital employed, ROCE, amounted to 17.7% in the first half of 2026, compared with 19.0% in the previous year.
Full-year guidance confirmed
Krones noted that persistent and further growing general economic uncertainties are presenting major challenges to companies. The company referred to the already prolonged conflict in Iran and its potential impact on the economy in the Middle East and, by extension, the global economy. It also pointed to uncertainty around global tariff policies, which could lead to a decline in world trade.
Material shortages, problems in worldwide supply chains and sharply fluctuating commodity prices also remain sources of uncertainty. According to Krones, these macroeconomic risks have an impact on some customers’ short-term investment behaviour.
Overall, based on the currently expected development of the markets relevant to Krones and the positive first half of the year, the company confirmed its financial targets for 2026.
Adjusted for currency translation effects, the Executive Board expects consolidated revenue growth of 3% to 5%. On the basis of increasing operating revenue, an ongoing disciplined price strategy and continued implementation of cost optimisation measures, Krones aims to improve profitability again this year compared with 2025. At group level for 2026, the company forecasts an EBITDA margin of 10.7% to 11.1%. For its third financial target, ROCE, Krones expects between 19% and 20% this year.
Krones has published the complete interim report for the first half of 2026 online at: https://www.krones.com/media/downloads/Q2_2026_e.pdf
