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1. Company Snapshot

1.a. Company Description

KION GROUP AG provides industrial trucks, warehouse technology, supply chain solutions, and related services worldwide.The company operates through Industrial Trucks & Services, and Supply Chain Solutions segments.It develops, manufactures, and sells forklift and warehouse trucks, such as counterbalance trucks with electric drive and internal combustion engine, ride-on and hand-operated industrial trucks, and towing vehicles under the Linde, Fenwick, STILL, Baoli, and OM brand names.


The company also manufactures and sells spare parts; leases industrial trucks and related items; offers maintenance and repair, and fleet management services, as well as provides finance solutions.In addition, it provides integrated technology and software solutions, including conveyors, sorters, storage and retrieval systems, picking equipment, palletizers, and automated guided vehicle systems under the Dematic brand.The company was formerly known as KION Holding 1 GmbH.


KION GROUP AG was founded in 2006 and is based in Frankfurt am Main, Germany.

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1.b. Last Insights on KGX

KION GROUP AG's recent momentum is fueled by growing optimism about its earnings prospects, with a Zacks Rank #2 (Buy) upgrade reflecting improved sentiment. Analysts have raised their price target, citing the company's strengthening position in the industrial sector and favorable industry dynamics. Additionally, the company's estimated fair value is €83.50, suggesting a potential undervaluation of 29%, according to a 2 Stage Free Cash Flow to Equity model.

1.c. Company Highlights

2. KION's Q3 2025 Earnings: A Solid Performance Amidst Market Recovery

KION reported a mixed bag in its third quarter 2025 results, with group order intake rising 10% year-over-year to EUR 2.7 billion, while revenue remained flat at the KION level. The adjusted EBIT margin stood at 7%, with the Supply Chain Solutions (SCS) segment compensating for the decline in the Industrial Trucks Solutions (ITS) segment. Earnings per share (EPS) came in at EUR 0.87, slightly below estimates of EUR 0.919. Revenue in the ITS segment declined by 3% year-over-year to EUR 1.9 billion, while the SCS segment saw a year-over-year revenue increase. The company's adjusted EBIT was EUR 190 million.

Publication Date: Nov -03

📋 Highlights
  • Order Intake Growth:: Group order intake rose 10% to EUR 2.7 billion in Q3 2025.
  • Adjusted EBIT Performance:: Adjusted EBIT reached EUR 190 million (7% margin), impacted by ITS segment cost absorption.
  • Efficiency Program Savings:: Expected cost reduction narrowed to EUR 170-190 million (from EUR 240-260 million), preserving 2025 cash flow.
  • Free Cash Flow Surge:: Free cash flow hit EUR 231 million, driven by improved net working capital in ITS.
  • Guidance Upgrades:: Full-year free cash flow increased to EUR 600-700 million (from EUR 400-550 million) due to lower efficiency program expenses.

Segmental Performance

The ITS segment reported an order intake of 60,000 units, a 17% increase year-over-year, but a sequential decrease of 14%. Revenue declined by 3% year-over-year, while adjusted EBIT margin stood at 8.8%. In contrast, the SCS segment saw orders decline sequentially but still represented a 16% year-over-year increase. Revenue increased both sequentially and year-over-year, with adjusted EBIT improving strongly year-over-year to EUR 48 million.

Efficiency Program and Guidance

KION has made significant progress in its efficiency program, with expected expenses reduced to EUR 170-190 million in 2025 from the initial EUR 240-260 million. The company has narrowed its guidance range for ITS and increased the lower end of both revenue and adjusted EBIT guidance for SCS. Free cash flow guidance has been substantially increased to between EUR 600 million and EUR 700 million from previously EUR 400 million to EUR 550 million. As Richard Smith noted, "A significant portion of the associated cash out is shifting from the fourth quarter of '25 to the first quarter of '26, preserving cash in 2025."

Valuation and Outlook

With a P/E Ratio of 36.81 and an EV/EBITDA of 7.04, the market seems to be pricing in a significant growth trajectory for KION. The company's ROE stands at 3.82%, while the ROIC is at 2.3%. Analysts estimate next year's revenue growth at 5.4%. The company's guidance and outlook suggest a continued recovery in the market, driven by growing CapEx investments and a de-escalation of tensions. However, the guidance for the ITS segment has been reduced, implying an 8% decline in revenue in the fourth quarter compared to the previous year.

3. NewsRoom

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KION GROUP AG (ETR:KGX) Shares Could Be 29% Below Their Intrinsic Value Estimate

Feb -02

Source:

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Zacks Industry Outlook Highlights Kion Group, Andritz, SiteOne Landscape and MSC Industrial Direct

Dec -30

Source:

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4 Industrial Services Stocks to Watch Amid Industry Challenges

Dec -29

Source: zacks.com

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Kion Group (KIGRY) Upgraded to Buy: Here's What You Should Know

Dec -24

Source:

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Are Industrial Products Stocks Lagging Kion Group (KIGRY) This Year?

Dec -17

Source: zacks.com

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KION GROUP (XTRA:KGX): Has the Share Price Rally Closed the Valuation Gap?

Dec -15

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Elliott Management Raises Stake in Toyota. No, Not the Car Company.

Dec -11

Source:

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Here Is Why Bargain Hunters Would Love Fast-paced Mover Kion Group (KIGRY)

Nov -26

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.76%)

6. Segments

Industrial Trucks & Services

Expected Growth: 3.5%

KION GROUP AG's Industrial Trucks & Services segment growth of 3.5% is driven by increasing demand for warehouse automation, e-commerce growth, and rising need for efficient supply chain management. Additionally, the company's focus on digitalization, electrification, and expansion in emerging markets also contribute to its growth.

Supply Chain Solutions

Expected Growth: 4.5%

KION GROUP AG's Supply Chain Solutions segment growth of 4.5% is driven by increasing demand for warehouse automation, e-commerce growth, and rising need for efficient logistics. Additionally, the company's focus on digitalization, innovative products, and strategic acquisitions contribute to its growth momentum.

Corporate Services

Expected Growth: 3.8%

KION GROUP AG's Corporate Services segment growth of 3.8% is driven by increasing demand for warehouse automation, e-commerce growth, and rising need for efficient supply chain management. Additionally, the company's focus on digitalization, innovation, and strategic acquisitions have contributed to the segment's growth.

7. Detailed Products

Industrial Trucks

KION GROUP AG offers a wide range of industrial trucks, including counterbalance trucks, warehouse trucks, and special trucks, designed for efficient and safe material handling in various industries.

Warehouse Technology

KION GROUP AG provides warehouse technology solutions, including automated storage and retrieval systems, conveyor systems, and warehouse management software, to optimize warehouse operations.

Supply Chain Solutions

KION GROUP AG offers supply chain solutions, including consulting, implementation, and operation of logistics systems, to optimize supply chain operations.

Automated Systems

KION GROUP AG provides automated systems, including automated guided vehicles, robotic solutions, and automated storage and retrieval systems, to increase efficiency and reduce costs.

Energy Systems

KION GROUP AG offers energy systems, including lithium-ion batteries, charging systems, and energy management solutions, to power industrial trucks and other material handling equipment.

Digital Solutions

KION GROUP AG provides digital solutions, including fleet management, analytics, and IoT-based solutions, to optimize material handling operations and improve supply chain efficiency.

8. KION GROUP AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for KION GROUP AG is moderate, as there are alternative products and services available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for KION GROUP AG is low, as the company has a diverse customer base and no single customer has significant bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for KION GROUP AG is moderate, as the company relies on a few key suppliers for critical components, but has some flexibility to switch suppliers if needed.

Threat Of New Entrants

The threat of new entrants for KION GROUP AG is low, as the company has significant barriers to entry, including high capital requirements and established relationships with customers.

Intensity Of Rivalry

The intensity of rivalry for KION GROUP AG is high, as the company operates in a highly competitive industry with several established players, and must continually innovate and improve its products and services to remain competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.41%
Debt Cost 6.17%
Equity Weight 66.59%
Equity Cost 13.73%
WACC 11.21%
Leverage 50.17%

11. Quality Control: KION GROUP AG passed 3 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
ACS

A-Score: 6.6/10

Value: 4.9

Growth: 6.6

Quality: 4.5

Yield: 6.9

Momentum: 10.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Konecranes

A-Score: 5.8/10

Value: 4.6

Growth: 7.1

Quality: 7.5

Yield: 5.0

Momentum: 7.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
HOCHTIEF

A-Score: 5.5/10

Value: 3.7

Growth: 6.6

Quality: 4.3

Yield: 5.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Iveco

A-Score: 5.3/10

Value: 7.4

Growth: 6.8

Quality: 3.0

Yield: 1.9

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Traton

A-Score: 5.3/10

Value: 8.7

Growth: 6.0

Quality: 2.9

Yield: 6.2

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
KION

A-Score: 4.4/10

Value: 5.8

Growth: 4.1

Quality: 3.4

Yield: 1.9

Momentum: 9.0

Volatility: 2.3

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

65.55$

Current Price

65.55$

Potential

-0.00%

Expected Cash-Flows