Kion Group Q3 2025 Conference Call Summary Company Overview - **Company**: Kion Group (OTCPK: KIGR.Y) - **Date of Call**: October 02, 2025 Key Points Industry and Market Trends - The ITS segment has shown consistent year-on-year momentum, with Q3 2025 expected to reflect typical seasonal patterns, indicating a sequential decline in orders by mid-teens percentage [2][6] - Year-over-year growth in order intake is anticipated, particularly in EMEA and APAC regions, despite a sequential decline due to seasonal factors [2][6] - The overall business environment in Germany is characterized as a cautious recovery, with geopolitical factors influencing market expectations [20][22] Order Intake and Revenue Developments - Order intake in units for Q3 2025 is expected to decrease sequentially, but year-over-year growth may be higher due to a low base from the previous year [2][6] - Revenue in the ITS segment is projected to be marginally below the prior year level, influenced by the exhaustion of a high order backlog from 2024 [3][6] - The SCS segment has seen a recovery in order intake, with expectations of revenue growth due to improved order intake from previous quarters [5][6] Financial Performance - The book-to-bill ratio for the ITS segment is expected to be slightly below one, indicating a decline in the order book compared to the previous year [3][6] - Adjusted EBIT margins are anticipated to decline year-over-year due to increased expenses from long-term incentive programs and lower factory utilization [3][7][8] - Free cash flow is expected to be solidly positive but lower than the prior year due to additional pension funding [10][11] Cost and Pricing Dynamics - The impact of the higher KION share price has led to increased expenses for long-term incentive programs, affecting overall financial performance [4][8] - The pricing dynamics in the forklift market are expected to be influenced by the Producer Price Index (PPI) in Germany, with a cautious outlook on pricing stability [43][45] Future Outlook - The company is still evaluating the impact of Section 232 tariffs on imports to the U.S., with a more detailed update expected in the next report [33][34] - Expectations for the German government’s investment boost are tempered, with a recognition that benefits will take time to materialize [40][42] Additional Notes - Non-recurring expenses related to an efficiency program were recorded in the first half of 2025, with further updates expected in the Q3 report [8][9] - The company is cautious about extrapolating current order intake growth into future quarters, emphasizing the need for a complete view of September's performance before making definitive statements [5][30] This summary encapsulates the key insights from Kion Group's Q3 2025 conference call, highlighting the company's performance, market conditions, and future expectations.

Core Insights - The company's Q1 2025 results show seasonal fluctuations but an overall year-on-year improvement in performance [1] Financial Performance - Revenue for Q1 2025 was EUR 200.3 million, up EUR 6.5 million or 3.4% from Q1 2024 [2] - Expenses increased to EUR 185.0 million, a rise of EUR 5.4 million or 3.0% year-on-year [2] - EBITDA for the quarter was EUR 15.3 million, reflecting a 7.7% increase from EUR 14.2 million in Q1 2024, with an EBITDA margin of 7.7% compared to 7.3% last year [2] - Net earnings were negative at EUR 0.8 million, down from positive earnings of EUR 0.5 million in the same period last year, primarily due to increased depreciation and lower profit from affiliates [2] - Cash flow from operations was strong at EUR 16 million, significantly higher than EUR 2.7 million in Q1 2024 [2] Operational Highlights - The CEO noted a 6.6% increase in volume in the sailing system despite operational disruptions from bad weather [3] - The sailing system's improved performance was attributed to increased volume, better utilization, and a slight decrease in cost per transported unit [4] - The international freight forwarding segment saw EBITDA rise to EUR 2.5 million from EUR 2.0 million, despite a 12% decrease in volume due to market turmoil and container shortages [5] - Trucking and terminal operations performed well, while warehousing utilization decreased due to lower inventory levels of seafood products [6] Market Context - The company faces challenges from regulatory requirements and uncertainties in international trade, alongside discussions of potential new tax burdens in Iceland [7] - The company remains optimistic about future performance, anticipating seasonal fluctuations with higher activity levels in the second and third quarters [8] - The unique position in the North Atlantic provides resilience to economic fluctuations, as home markets rely heavily on sea transport for imports and exports [8]