Kontron AG

Latest Results (06.03.2026):

Kontron AG — Q2 2025 (Half‑year report 2025): The company reported largely stable revenue for the first half of 2025 (6M revenue EUR 781.1m, +0.2% y/y) but materially higher profitability driven by portfolio optimization and the carve‑out/deconsolidation of its COM business. EBITDA for 6M rose to EUR 146.0m (6M 2024: EUR 82.0m) and undiluted earnings per share increased to EUR 1.45 (6M 2024: EUR 0.61). Kontron raised its 2025 EBITDA target to at least EUR 270m and reiterated revenue guidance of about EUR 1.8bn.

Key numbers (Q2 2025 / 6M 2025)

Q2 revenues: EUR 395.7m (Q2 2024: EUR 423.8m, -6.6%). 6M revenues: EUR 781.1m (6M 2024: EUR 779.9m). Q2 EBITDA: EUR 98.1m (Q2 2024: EUR 46.5m, +110.8%). 6M EBITDA: EUR 146.0m (6M 2024: EUR 82.0m, +78.2%). Undiluted EPS (6M): EUR 1.45 (6M 2024: EUR 0.61).

Main driver — COM carve‑out and one‑offs

Kontron carved out and deconsolidated its COM business (JumpTec/congatec transaction). The deconsolidation generated preliminary one‑time EBITDA/revenue effects of about EUR 48m that materially boosted profitability in Q2 and H1. The company says it will retain technology access via partnership while focusing its resources on higher‑margin “Software + Solutions”.

Segment trends

“Software + Solutions” grew strongly: 6M revenue EUR 271.4m (+16.5% y/y) and EBITDA before HQ costs EUR 40.0m. “Europe” revenues were slightly down (EUR 398.6m) but segment EBITDA rose (driven by one‑offs). “Global” declined (6M EUR 111.1m, -5.2%).

Margins and cash flow

Group gross margin/operating gross margin remained broadly stable year‑on‑year for the first half, though Q2 gross margin fell (to ~37.7%) due to one‑time portfolio‑optimization effects. Operating cash flow improved to a positive EUR 16.3m (6M 2024: -EUR 16.8m); Q2 operating cash flow was EUR 13.5m.

Balance sheet and liquidity

Cash and cash equivalents at 30 June 2025: EUR 193.5m (31 Dec 2024: EUR 315.6m). Net debt increased to EUR 254.6m (31 Dec 2024: EUR 163.1m) — rise mainly from investments, lease repayments, deconsolidation cash outflows and the dividend (EUR 0.60/share paid). Equity EUR 688.3m; equity ratio 38.1%.

Outlook

Management raised the 2025 EBITDA target from at least EUR 220m to at least EUR 270m (including expected one‑time effects from COM deconsolidation) and expects full‑year revenues around EUR 1.8bn. They expect net debt to decline in H2 2025 as measures take effect.

Other items & risks

Kontron continues portfolio optimization (sale of US/Malaysia module subsidiaries for EUR 26m, retained 4% in JumpTec). Headcount fell to 6,938 FTEs (from 7,263). Management highlights opportunities in AI/IoT, FRMCS rail, 5G private networks and KontronOS, but notes geopolitical, currency and macro risks and that part of the strong H1 profit is driven by non‑recurring items.