Koenig & Bauer, a leading global technology provider of special printing applications with a particular focus on the packaging sector, closed the second quarter of 2025 with strong preliminary figures. At the same time, it is consistently pursuing its strategy of focusing on reinforcing its profitability. In this context, it will be reviewing the future alignment of Koenig & Bauer Coding GmbH to additionally concentrate on its core business in printing press engineering and related services.
Stephen Kimmich, chief executive officer of Koenig & Bauer AG, adds, “Despite a persistently challenging market environment, the preliminary strong Q2 figures confirm the effectiveness of our ‘Spotlight’ measures for strengthening our profitability on a sustained basis and for positioning the Group to optimum effect for the future. Reviewing all options for coding business to harness the potential of this entity as effectively as possible is a logical and necessary step in enhancing our Group focus as this company has limited synergistic overlap with our core business.”
Despite a challenging market environment – 7.0% increase in revenue and the largest order backlog in the company’s recent history according to preliminary figures: In the second quarter revenue rose by 7.0% to 298.2m Euros on the basis of the preliminary figures. Preliminary order intake was valued at 361.7m Euros (previous year: 398.6m Euros). This is a solid performance given the muted demand in the wake of the uncertainties surrounding US tariffs and the high volume of orders around drupa in the strong same quarter of the previous year. Even so, based on the preliminary figures, the order backlog increased to 1,096.3m Euros (up 7.4%), marking the highest figure in the company’s recent history.
Significant improvement of 22.7m Euros in preliminary operating EBIT – full-year forecast for 2025 confirmed: Preliminary EBIT rose by 24.1m Euros over the same quarter of the previous year to 0.4m Euros, while preliminary operating EBIT climbed by 22.7m Euros to 1.8m Euros. This strong performance is in line with the full-year forecast for 2025: the Group anticipates a slight increase in revenue to 1.3bn Euros, accompanied by higher operating EBIT in a corridor of 35 – 50m Euros. Target achievement within this corridor is highly dependent on actual global economic and geopolitical developments over the next few months.
“The preliminary Q2 figures point to an improvement in our financial position, which we are further strengthening by means of consistent management within the framework of “Spotlight”, comments Alexander Blum, chief financial officer of Koenig & Bauer AG, adding that “our focus is on optimising the Group’s efficiency and profitability by clearly concentrating on value creation, thus laying resilient foundations for sustainable growth and for achieving our goals.”
Group focus making progress with the strategic review of all options for Coding GmbH – from further development including a joint venture or partnership to a possible sale. The improvement in earnings testifies to the positive effect of the almost fully implemented “Spotlight” focus program, which is contributing to the realignment of the Group and strengthening its profitability. Under this program, the Group project portfolio has already been scaled back. For example, the CSMetalCan for 2-piece beverage can printing has been discontinued, while the complexity of the flexo segment has been reduced by eliminating certain press versions.
As a logical next step in concentrating on its core business areas, the future alignment of Koenig & Bauer Coding GmbH is currently also under review. The rationale behind this is the limited overlap with the Group’s other core business entailing industrial printing applications such as packaging or security printing. By contrast, Koenig & Bauer Coding GmbH, as a largely self-sufficient entity, addresses a downstream market. Its coding systems are typically used by the bottlers and packagers themselves. In view of this different market orientation and the limited synergistic benefits within the Group as a whole, the review will be considering all options for the further development of coding business, including a joint venture, a partnership or a possible sale.
Koenig & Bauer Coding GmbH: strong position in the growing market for industrial coding technologies: With around 300 employees and over 50 years of experience, Koenig & Bauer Coding GmbH in Veitshöchheim, Germany, is one of the leading suppliers in the market for industrial coding technologies. It has a robust financial profile and is well established on the market with its product portfolio, which includes inkjet and laser systems. Its customers encompass large international corporations active in food and beverages, consumer goods, pharmaceuticals, cosmetics, as well as automotive and other industrial segments. Koenig & Bauer Coding GmbH currently contributes stable revenue of around 4% to the Koenig & Bauer Group and offers good prospects for future growth.
As Stephen Kimmich adds, “Our coding segment is a solid and well-managed business with committed employees and good market potential, which we would like to leverage as part of its targeted further development.”
