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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.

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1.b. Last Insights on KRN

Krones AG's recent struggles can be attributed to a combination of factors. A closer look at the company's fundamentals reveals a disconnect between its strong underlying performance and the market's perception. Despite a rough three months, Krones' business conditions appear robust. However, short-term market sentiment and valuation concerns may be influencing the stock. The recent quiet market period has led to questions about the company's valuation. Additionally, investors are evaluating Krones' position amidst a backdrop of shifting market sentiment and valuation assessments.

1.c. Company Highlights

2. Krones' Q3 2025 Earnings: A Resilient Performance

Krones reported a revenue growth of 4.7% in Q3 2025, with a year-to-date growth of 6%. The company's EBITDA margin stood at 10.2%, slightly below the expected range. The actual EPS came out at €2.15, missing estimates of €3.33. According to Uta Anders, CFO, "the company confirms its guidance of 7% to 9% revenue growth and 10.2% to 10.8% EBITDA margin." The company's segments performed well, with Filling and Packaging Technology achieving a 6.2% growth and Process Technology achieving a 10.2% EBITDA margin.

Publication Date: Nov -13

📋 Highlights
  • Revenue Growth & Guidance: Q3 revenue grew 4.7% YoY; year-to-date growth at 6%, confirming 7-9% 2025 guidance despite FX headwinds (7% growth without FX effects).
  • EBITDA Margin & ROCE: Process Technology segment achieved 10.2% EBITDA margin; full-year EBITDA margin guidance 10.2-10.8%; ROCE at 19.5% (upper end of 18-20% target).
  • Balance Sheet Strength: EUR 1.24B liquidity reserve, 42.1% equity ratio, and EUR 174M operating cash flow in Q3; free cash flow of EUR 80M.
  • Order Intake & Pipeline: Book-to-bill ratio of 1, strong Q4 visibility with EUR 363M cash reserves; 2026 order pipeline "looks good" with capacity builds in India/China (mid-2026 start).
  • Segment Performance: Intralogistics grew 13.4% revenue, Filling/ Packaging +6.2%; M&A added EUR 31M via CSW acquisition, with CapEx accelerating in Q4.

Segmental Performance

The company's Intralogistics segment achieved a 13.4% growth and a 7.4% EBITDA margin. The strong order backlog and robust markets contributed to the company's resilient performance. Christoph Klenk, CEO, highlighted the importance of drinktec, a trade show where Krones showcased its digitalization and life cycle services, enabling a new business model.

Balance Sheet and Cash Flow

The company's balance sheet remains strong, with a liquidity reserve of €1.24 billion and a 42.1% equity ratio. The cash flow from operating activities was €174 million, with free cash flow of €80 million. The company's return on capital employed (ROCE) is 19.5%, at the upper end of its guidance range of 18% to 20%.

Valuation Metrics

With a P/E Ratio of 14.2 and an EV/EBITDA of 6.22, Krones' valuation appears reasonable. The company's ROE (%) is 14.91, and its ROIC (%) is 11.8. The Net Debt / EBITDA ratio is -0.63, indicating a strong financial position. Analysts estimate next year's revenue growth at 4.7%, which is lower than the company's medium-term CAGR of 7%.

Outlook and Guidance

Krones confirms its guidance for 2025, including revenue growth and order intake. The company expects a strong fourth quarter, with revenue growth of around 10%. The book-to-bill ratio is expected to be around 1, and the company is optimistic about its pipeline for 2026. Christoph Klenk mentioned that the momentum is not lost, and the company will grow next year, but emphasized that the path to €7 billion will be non-linear.

3. NewsRoom

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

Nov -25

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

Nov -18

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

Nov -11

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

Oct -14

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

Sep -09

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

Sep -09

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Deutsche Bank (XTRA:DBK): Assessing Valuation After a Period of Quiet Share Price Momentum

Sep -09

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Is Vaisala (HLSE:VAIAS) Undervalued? A Fresh Look at Its Current Valuation

Sep -09

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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: 6.2/10

Value: 4.3

Growth: 7.8

Quality: 7.4

Yield: 5.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Weir

A-Score: 5.7/10

Value: 2.7

Growth: 6.1

Quality: 6.1

Yield: 2.5

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Wärtsilä

A-Score: 5.5/10

Value: 2.9

Growth: 6.3

Quality: 7.6

Yield: 3.8

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Krones

A-Score: 5.5/10

Value: 5.7

Growth: 6.9

Quality: 6.1

Yield: 3.1

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Pentair

A-Score: 4.9/10

Value: 1.8

Growth: 4.8

Quality: 7.2

Yield: 1.9

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Rational

A-Score: 4.7/10

Value: 1.4

Growth: 6.4

Quality: 8.8

Yield: 2.5

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

133.6$

Current Price

133.6$

Potential

-0.00%

Expected Cash-Flows