• Net income jumps to EUR 141.1 million (adj. EUR 108.7 million) – PY: EUR 90.7 million
• EBITDA rises to EUR 237.4 million (adj. EUR 220.5 million) – PY: EUR 191.8 million
• Very significant jump in operating cash flow of 69.4% to EUR 167.7 million – PY: EUR 99.0 million
• Order backlog rises further to EUR 2.5 billion – PY: EUR 2.1 billion with a book-to-bill ratio of 1.26
• EBITDA outlook for 2026 of EUR 225 million adj. and midterm guidance of EUR 420 million

Linz, March 26, 2026 – Kontron, a leading global provider of IoT technology, today published its audited Annual Report 2025. Despite a challenging overall market environment, Kontron AG significantly increased its profitability and continued to successfully advance the strategic realignment of its portfolio.

While revenue declined slightly to EUR 1,607.3 million (PY: EUR 1,684.8 million) due to portfolio adjustments (in particular the deconsolidation of the COM business and the closure of individual locations), the key earnings metrics rose significantly. The gross margin increased slightly to 42.1% compared to 41.2% in 2024.

EBITDA improved by 23.8% to EUR 237.4 million and, adjusted for one-off effects, to EUR 220.5 million compared to EUR 191.8 million in the previous year. Consolidated net income after tax increased significantly by 55.6% to EUR 141.1 million, compared to EUR 90.7 million in the previous year. Adjusted net income before one-off effects from the portfolio realignment amounted to EUR 108.7 million.

This development was driven in particular by the high-margin Software + Solutions segment, which increased revenues to EUR 590.7 million (PY: EUR 528.2 million) and generated EBITDA of EUR 103.3 million, despite being impacted by a negative result from the GreenTec Division.

Operating cash flow reached a new record level of EUR 167.7 million (PY: 99.0 million). This is also reflected in the development of working capital, which was again significantly reduced from EUR 350.6 million to EUR 287.4 million. At the same time, net debt also fell to EUR 147.1 million (PY: 163.1 million). In addition, Kontron expects to receive a further EUR 126 million from congatec by the end of the third quarter. Equity was further strengthened in 2025, increasing from 35.8% to 41.8%.

Strength in Segment Software + Solutions

Revenue development was largely shaped by the strategic deconsolidation of the COM business and parts of the IT services business. Operationally, however, robust growth was recorded in the core areas. The Defense and Transportation divisions developed particularly dynamically, benefiting from increasing investments in infrastructure and security. The division recorded an increase in backlog to EUR 873 million, with a book-to-bill ratio of 1.47.

Challenges in Environmental Technology Business

By contrast, the environmental technology business, especially in the solar sector, had a negative impact. Revenues declined from EUR 193 million to EUR 151 million, resulting in a negative EBIT contribution of around EUR 8 million. The transformation is expected to be completed by 2026. Kontron plans to streamline this business area to a limited number of profitable products in order to capitalize on the opportunities in this field. At the same time, Kontron currently expects a reduction of around 500 positions across the group. The restructuring is expected to be completed in 2026, with restructuring expenses of around EUR 25 million.

Cybersecurity and Software as Structural Growth Drivers

In light of regulatory developments such as the Cyber Resilience Act (CRA), Kontron is positioning itself specifically as a provider of safety-critical software solutions. With KontronOS and the cybersecurity solution KontronAI Shield, the company is well positioned to benefit from increasing digitalization and rising security requirements. Kontron plans to deploy around 30 million software packages by 2028.

Hannes Niederhauser, CEO of Kontron AG, comments: "2025 was a year of transformation for Kontron, with clear progress in profitability and strategic focus. While geopolitical tensions, protectionism and regulatory requirements complicate the environment, significant growth opportunities are emerging at the same time – especially in the areas of Defense, Transportation and Cybersecurity. We have set the right course to consistently capitalize on these opportunities and further expand our technological leadership position."

Outlook

For the 2026 financial year, Kontron expects revenue to increase to around EUR 1.75 billion to over EUR 1.8 billion, depending on the development of the wallbox business. This corresponds to organic growth of around 8%, with the Defense and Transportation divisions likely to remain particularly dynamic, with growth rates of over 20%. At the same time, the company is evaluating targeted acquisitions to strengthen its strategic core areas. Kontron is also continuing to drive forward its internationalization. The share of revenues generated in the United States and China is expected to double from the current 15% to around 30% by 2030, supported by local production capacities and enhanced cooperation with Ennoconn and Foxconn.

Kontron expects adjusted EBITDA of EUR 225 million, before restructuring expenses of around EUR 25 million related to the streamlining of the GreenTec division, which is expected to return to profitability as early as in the fourth quarter of 2026.

Against the backdrop of Kontron's profitability development relative to its current share price performance, Kontron's management has decided to launch a share buyback program of EUR 50 million. Up to 2.9 million treasury shares are to be acquired. Depending on market developments and share price performance, the program may be expanded.

With clear growth drivers in Defense, Transportation and Software, as well as a stringent restructuring of weaker areas, the Group is well positioned for the coming years and expects revenue to increase to EUR 2.6 billion, with EBITDA of EUR 420 million by 2030.

The Annual Report 2025 is available on the website at: https://www.kontron.com/en/group/investors/financial-reports
 

Conference Call Today, March 26, 2026

For interested investors and press representatives, Kontron AG will hold a conference call in English today, March 26, 2026, at 9:00 a.m.

To participate in the conference call, please register here: Kontron Earnings-Call Annual Report 2025
 

About Kontron

Kontron AG (www.kontron.com, ISIN AT0000A0E9W5, WKN A0X9EJ, KTN) is a leading IoT technology company. For more than 20 years, Kontron has been supporting companies from a wide range of industries to achieve their business goals with intelligent solutions. From automated industrial operations, smarter and safer transport to advanced communications, connectivity, medical, and energy solutions, the company delivers technologies that add value for its customers. Kontron has around 7,000 employees in over 20 countries worldwide and is listed on the SDAX® and TecDAX® of the German Stock Exchange.

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