KION Group posts strong FY2024 financial results

KION Group has announced robust financial results for the financial year 2024, highlighting a significant increase in profitability. With revenue slightly improved to €11.5 billion from €11.4 billion in 2023, the company reported an adjusted EBIT of €917 million, up from €791 million the previous year. The adjusted EBIT margin rose to 8.0 percent, compared to 6.9 percent in 2023. Free cash flow for the year was €702 million, a slight decrease from €715 million in 2023.

In response to these positive results, the Executive Board of KION GROUP AG has resolved to implement an efficiency programme aimed at maintaining the company’s headroom for future investments. This decision comes amid a fast-changing macroeconomic and geopolitical environment, as KION remains committed to extending its leading role in the market.

“KION is at a pivotal moment in its history. Our preliminary results of the financial year 2024 prove that in a challenging environment we can deliver a strong performance,” said Rob Smith, CEO of KION GROUP AG.

“KION is a recognised leader in its markets, strongly valued across our customer base and by our partners. We are the first in the industry to work with NVIDIA’s physical AI, creating the warehouse of the future and reshaping our industry. To further drive our development of solutions in both segments to cover future requirements from our customers, we will develop an even more resilient and agile company.”

The efficiency programme addresses developments in the macroeconomic environment, particularly as European economies struggle to gain momentum. This affects key customer industries in the industrial trucks and services segment, where Chinese competitors have been improving their market position post-pandemics.

While internal programmes to continuously improve product, production, and services costs were already in place throughout 2024 and will continue, further structural measures will focus on a more efficient setup for KION in Europe. These measures are expected to impact personnel requirements, subject to consultations with employee representative bodies as required by local laws.

The efficiency programme aims to achieve sustainable cost savings of around €140 million to €160 million per year, fully effective in the 2026 financial year. The implementation of the cost-saving measures will incur one-off expenses of approximately €240 million to €260 million in the financial year 2025, with the majority expected to be cash-effective in 2025.

Christian Harm, CFO of KION GROUP AG, added, “In order to maintain headroom for investments ensuring our future, to further strengthen our competitiveness and our resilience, we must manage our cost base. This requires structural and sustainable measures.”