Kardex H2 2025: Strong Orders, Net Income Miss

Key Performance Highlights

Kardex announced its full-year 2025 results, revealing a strong second half with group order intake surging 29% year-over-year to €528 million, significantly exceeding consensus estimates. The company's EBIT margin also outperformed, reaching 12.0%.

Despite these gains, net income for the second half was CHF6 million, falling well short of the CHF40 million consensus due to a substantial one-off impairment charge.

Overall Financial Picture

Group sales for the second half saw a modest 3% rise to €435 million, slightly missing the market forecast of €458 million. The key story for profitability was a CHF39 million impairment on a loan to the since-acquired Rocket Solution, which heavily impacted the bottom line.

On a positive note, the company proposed a dividend of CHF6.00 per share, which was higher than the anticipated CHF5.85, signaling confidence in its operational health.

Segment Performance and Outlook

The Standardized Systems segment was a standout performer, with orders rocketing up by 66% year-over-year. In contrast, the Automated Products segment experienced a 1% revenue decline, attributed to demand weakness in the US market.

Looking ahead, Kardex did not issue specific guidance for fiscal year 2026 but reaffirmed its medium-term targets, which include achieving sales of €1.5 billion between 2029 and 2031 with an EBIT margin of 10-14%.

Summary

Kardex's second-half 2025 results show a company with strong demand and operational efficiency, evidenced by soaring order intake and a healthy EBIT margin. However, this performance was overshadowed by a large impairment that skewed net income. Investors will likely focus on the robust order book as a positive forward-looking indicator while watching for recovery in the US market.

FAQ

Q: Why did Kardex's net income miss expectations so significantly?
A: The miss was primarily due to a one-time CHF39 million impairment charge related to a previous loan, which reduced net income to CHF6 million.

Q: Which part of Kardex's business performed the best?
A: The Standardized Systems segment showed exceptional strength, with its order intake growing by 66% year-over-year in the second half of 2025.

Source: Investing.com