Koenig & Bauer AG has successfully concluded the 2025 financial year, according to preliminary, unaudited figures. Despite a persistently weak macroeconomic environment and increasing trade policy uncertainties, the company precisely met its forecast and was able to significantly increase its operating profitability compared to the previous year.
Spot-on achievement of annual targets and significant EBIT increase driven by the “Spotlight” focus program.
Group revenue improved as planned by +2.2% (slight revenue growth) to Euros 1,302.4m (previous year: Euros 1,274.4m). Both segments contributed to the revenue growth, with Special & New Technologies (S&T) delivering a clear increase of +6.8% to Euros 596.0m (previous year: Euros 558.0m) and Paper & Packaging Sheetfed Systems (P&P) posting a solid +0.9% rise to Euros 741.5m (previous year: Euros 734.8m).
Operating EBIT rose by +Euros 21.3m to Euros 36.6m (previous year: Euros 15.3m). The company thus landed squarely within the forecast specified in November 2024 (lower half of the corridor of Euros 35m to Euros 50m).Â
Non-operating extraordinary items also fell sharply in the 2025 financial year to just Euros 5.3m (previous year: Euros 50.4m “Spotlight”) and comprise the planned expenses for the familiar “Spotlight” focus program. Consequently, EBIT improved significantly by +Euros 66.4m to Euros 31.3m (previous year: Euros -35.1m).
Reduced year-end dependency and strong cash generation in Q4-25
In the fourth quarter, operating EBIT of Euros 30.2m (previous year: Euros 46.5m) was generated. Bolstered by an already strong operating performance in Q3-25 (Euros 16.0m), this made it possible to noticeably smooth out the earnings trend in the second half of the year and significantly reduce the dependency on the year-end compared to the previous year. Due to the strong cash inflow of Euros 69.2m in Q4-25, a positive free cash flow of Euros 7.3m was generated for the year as a whole, despite having been negative at Euros -61.9m in the first nine months. Â
Dr Stephen Kimmich, chief executive officer of Koenig & Bauer AG, comments. “The 2025 results demonstrate the effectiveness of our measures to increase efficiency and thus mark a step forward in our operating profitability. Despite massive macroeconomic headwinds, we met our forecast and closed the year with a positive free cash flow. A strong performance by the entire Koenig & Bauer team.”Â
Resilient order situation
As expected, order intake of Euros 1,233.2m as of 31 December 2025 was below the strong previous year (-12.1%). The P&P segment proved to be highly resilient, recording a decline of just -3.9% (Euros 704.0m) compared to the drupa year. The -19.7% decline in the S&T segment (Euros 558.4m) is largely attributable to the high volume of orders from the US Bureau of Engraving and Printing in the previous year. The order backlog as of 31 December 2025 stood at Euros 970.6m (previous year: Euros 1,039.8m) and thus remains at a historically high level.
Outlook for 2026: Stable business performance expected
Against the backdrop of the current order situation and volatile geopolitical conditions, Koenig & Bauer expects to see continued operating stability in the 2026 financial year. In view of the future requirements of IFRS 18, to increase comparability with its peer group and to sharpen the focus on operating cash generation, the company will base its guidance on operating EBITDA (previously: operating EBIT) starting from the 2026 financial year.
Taking into account the opportunities and risks, the forecast is tied to the following key assumptions: Provided that global economic developments and demand stimuli in the relevant sub-markets remain stable, Group revenue is expected to be on a par with the previous year (2025: Euros 1,302.4m). Assuming that prompt clarity on import tariffs is reached based on recent US jurisprudence, enabling customers to make their investment decisions without trade-related uncertainty, the Executive Board forecasts operating EBITDA of approximately Euros 80m for 2026, consistent with the previous year. Operating EBITDA does not include any extraordinary items affecting earnings.
“By shifting our forecast to EBITDA, we are underlining our focus on operating cash generation and also making an early contribution to the future requirements of IFRS 18,” emphasises Dr Alexander Blum, CFO of Koenig & Bauer.
