Download PDF

1. Company Snapshot

1.a. Company Description

Krones AG, together with its subsidiaries, plans, develops, and manufactures machines and lines for the production, filling, and packaging technology in Germany and internationally.It operates in two segments, Machines and Lines for Product Filling and Decoration, and Machines and Lines for Beverage Production/Process Technology.The company provides process technology systems for use in beer, craft beer, juice, milk, soft drink, water, and spirit; Steinecker phoebus membrane filters; systems for ozonisation of water; bottle design; stretch blow molders; bottle washing machines; filling technology systems; inspection technology systems; labelers; conveyors; product treatment systems; packaging technology systems; palletizing technology systems; block technology systems; and recycling systems.


It also offers solutions for intralogistics, material flow technology, or warehousing for the beverage and food sector; and IT solutions.It serves breweries; beverage producers; and companies from the food, chemical, pharmaceutical, and cosmetic industries.Krones AG was founded in 1951 and is headquartered in Neutraubling, Germany.

Show Full description

1.b. Last Insights on KRN

Breaking News: Krones AG reported preliminary fiscal 2025 figures, highlighting profitable growth according to CEO Christoph Klenk. The company outlined targets for 2026, while citing currency volatility and regional shifts in demand as key factors. Executives discussed the results during a recent earnings call. Analysts at Deutsche Bank recommend a buy, while those at UBS and Goldman Sachs have a hold and sell rating respectively. Krones aims to continue growth momentum in 2026. Further details on the 2026 targets and growth strategy are expected to be provided.

1.c. Company Highlights

2. Krones' 2025 Earnings: A Resilient Performance Amidst Challenges

Krones reported a 7% revenue growth in 2025, reaching EUR 602.3 million in EBITDA, with a margin of 10.6%. However, the actual EPS came out at EUR 2.15, missing estimates of EUR 3.13. The revenue growth was within the company's guidance of 7% to 9%, with a EUR 99 million effect from currency translation. As Uta Anders, CFO, noted, "We have a very solid cash position with EUR 549 million in cash and EUR 1.437 billion in liquidity, enabling us to manage global economic volatility."

Publication Date: Feb -20

📋 Highlights
  • Revenue & Profit Growth:: Achieved 7% revenue growth and EUR 602.3 million EBITDA (12.2% increase) in 2025, with a 10.6% EBITDA margin.
  • 2026 Guidance:: Targets 3%–5% revenue growth (adjusted for currency) and a 10.7%–11.1% EBITDA margin, driven by cost optimization and stable pricing.
  • Strong Liquidity:: Maintains EUR 549 million in cash and EUR 1.437 billion in liquidity, with a EUR 282.9 million free cash flow in 2025.
  • Order & Backlog Stability:: Order intake EUR 100 million below sales in 2025, but expects a book-to-bill ratio above 1 in 2026; order backlog now stable post-decline.
  • Regional & Segment Performance:: Intralogistics grew 13.2% revenue (8.4% margin), while Process Technology saw 1.2% growth; Europe/Middle East and Africa outperformed, with North America recovering in 2026.

Segmental Performance

The company's segments, Filling and Packaging Technology, Process Technology, and Intralogistics, presented their results. Filling and Packaging Technology had a revenue growth of 7.2%, with a margin of 10.8%. Process Technology had a revenue growth of 1.2%, with a margin of 10.3%. Intralogistics had a revenue growth of 13.2%, with a margin of 8.4%. The Intralogistics segment has been under pressure due to competition from hybrid warehouses, but the company is exploring new markets in Asia and expects the margin to improve in the long term.

Guidance and Outlook

The guidance for 2026 is a revenue growth of 3% to 5% adjusted for currency translation effects, and an EBITDA margin of 10.7% to 11.1%. Analysts estimate next year's revenue growth at 6.3%, indicating a potentially more optimistic outlook. The company's order intake was EUR 100 million short of sales, but is expected to be higher than sales in 2026, with a book-to-bill ratio slightly above 1.

Valuation Metrics

Using the current valuation metrics, Krones has a P/E Ratio of 14.34, P/B Ratio of 2.11, and EV/EBITDA of 9.5. The Dividend Yield is 1.92%, and the Free Cash Flow Yield is 4.8%. The ROE is 15.12%, indicating a relatively healthy return on equity. These metrics suggest that the market has priced in a moderate growth outlook, but the company's resilient performance and guidance may provide a positive surprise.

Conclusion on Financial Health

The company's financial health is robust, with a solid cash position and a stable working capital development. The net cash position is around EUR 550 million, and the company is working on potential M&A projects. The payout ratio or payout per dividend is expected to increase due to profitable growth, benefiting shareholders.

3. NewsRoom

Card image cap

Krones Q4 Earnings Call Highlights

Feb -19

Source:

Card image cap

Are Robust Financials Driving The Recent Rally In Krones AG's (ETR:KRN) Stock?

Jan -30

Source:

Card image cap

Should You Investigate Krones AG (ETR:KRN) At €127?

Nov -25

Source:

Card image cap

Synopsys Demonstrates Framework for Optimizing Manufacturing Processes with Digital Twins at Microsoft Ignite

Nov -18

Source:

Card image cap

Analyst Estimates: Here's What Brokers Think Of Krones AG (ETR:KRN) After Its Third-Quarter Report

Nov -11

Source:

Card image cap

Owning 37% in Krones AG (ETR:KRN) means that insiders are heavily invested in the company's future

Oct -14

Source:

Card image cap

Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

Source:

Card image cap

Assessing Acciona (BME:ANA)'s Valuation After Recent Subtle Moves

Sep -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.26%)

6. Segments

Filling and Packaging Technology

Expected Growth: 7%

Krones AG's Filling and Packaging Technology segment growth is driven by increasing demand for sustainable and efficient packaging solutions, rising adoption of automation and digitalization in the beverage industry, and growing need for customized packaging formats. Additionally, the company's strong brand reputation, innovative products, and strategic acquisitions contribute to its growth.

Process Technology

Expected Growth: 9%

Krones AG's Process Technology segment growth is driven by increasing demand for efficient and sustainable beverage production, rising adoption of Industry 4.0 technologies, and growing need for customized packaging solutions. Additionally, the company's innovative products and services, such as its modular brewery concept, contribute to its 9% growth rate.

Intralogistics

Expected Growth: 8%

Intralogistics from Krones AG driven by increasing demand for automation and digitalization in breweries and beverage industries, coupled with growing need for efficient production and logistics processes. Rising adoption of Industry 4.0 technologies, such as robotics and IoT, also fuels growth. Additionally, expanding global footprint and strategic acquisitions contribute to the 8% growth rate.

7. Detailed Products

Brewery Equipment

Krones AG provides a wide range of brewery equipment, including brewhouses, fermentation tanks, and filling lines, designed to meet the specific needs of breweries of all sizes.

Filling Technology

Krones offers a comprehensive range of filling technology solutions, including filling machines, capping machines, and labeling machines, for various packaging formats.

Packaging Technology

Krones provides innovative packaging technology solutions, including packaging machines, palletizing systems, and conveyor systems, for a wide range of industries.

Process Technology

Krones offers process technology solutions, including pasteurization, filtration, and CIP systems, designed to optimize production processes in the beverage and food industries.

IT Solutions

Krones provides IT solutions, including manufacturing execution systems (MES), enterprise resource planning (ERP) systems, and data analytics, to optimize production and business processes.

Lifecycle Service

Krones offers lifecycle services, including maintenance, repair, and upgrade services, to ensure optimal performance and extend the lifespan of equipment and systems.

8. Krones AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Krones AG operates in a industry with moderate threat of substitutes. The company's products are specialized and have a high switching cost, which reduces the threat of substitutes.

Bargaining Power Of Customers

Krones AG has a diverse customer base, which reduces the bargaining power of individual customers. The company's products are also customized to meet specific customer needs, which increases customer loyalty.

Bargaining Power Of Suppliers

Krones AG has a moderate bargaining power of suppliers. The company relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's large size and global presence also give it some negotiating power.

Threat Of New Entrants

The threat of new entrants in the industry is low due to the high capital requirements and specialized technology required to enter the market. Krones AG's established brand and customer relationships also create a barrier to entry.

Intensity Of Rivalry

The intensity of rivalry in the industry is high due to the presence of several established competitors. Krones AG competes with other global companies, which leads to a high level of competition and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.25%
Debt Cost 9.98%
Equity Weight 97.75%
Equity Cost 9.98%
WACC 9.98%
Leverage 2.31%

11. Quality Control: Krones AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Burckhardt Compression

A-Score: 5.7/10

Value: 4.6

Growth: 7.8

Quality: 7.5

Yield: 5.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Krones

A-Score: 5.6/10

Value: 5.5

Growth: 6.9

Quality: 6.2

Yield: 3.1

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Wärtsilä

A-Score: 5.5/10

Value: 2.4

Growth: 6.4

Quality: 7.2

Yield: 3.8

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Weir

A-Score: 5.4/10

Value: 2.6

Growth: 6.1

Quality: 6.1

Yield: 1.9

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Rational

A-Score: 4.6/10

Value: 1.1

Growth: 6.4

Quality: 8.9

Yield: 2.5

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Pentair

A-Score: 4.5/10

Value: 1.8

Growth: 4.9

Quality: 7.5

Yield: 1.9

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

135.2$

Current Price

135.2$

Potential

-0.00%

Expected Cash-Flows