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KTN — Kontron AG News Story

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Austria's Kontron Q2 revenue edges up, order backlog hits record

Austria's Kontron Q2 revenue edges up, order backlog hits record


Overview

  • Austria IoT technology firm's Q2 revenue rose slightly yr/yr, adjusted EBITDA increased

  • Company confirmed full-year revenue forecast, expects organic growth of 8%

  • Order backlog reached record EUR 2.75 bln, restructuring in GreenTec division ongoing


Outlook

  • Kontron confirms 2026 revenue guidance slightly above EUR 1,607 mln

  • Company expects 2026 organic revenue growth of 8% after adjusting for sold businesses

  • Kontron maintains 2026 adj EBITDA forecast at EUR 225 mln before EUR 25 mln restructuring expenses


Result Drivers

  • SEGMENT GROWTH - Cybersolutions, Aerospace & Defense, and Transportation divisions drove revenue growth, while GreenTec sales declined sharply

  • RESTRUCTURING IMPACT - GreenTec division restructuring led to job reductions and is expected to yield cost savings from 2027

  • INVENTORY BUILD-UP - Operating cash flow was negative due to temporary inventory build-up amid chip crisis


Company press release: ID:nEQ38jM7Ha


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Adjusted Net Income

EUR 48.80 mln

H1 Order Backlog

EUR 2.75 bln


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • Wall Street's median 12-month price target for Kontron AG is €30.00, about 50% above its August 5 closing price of €20.00

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Aug 4 - Austria's ams OSRAM flags milestone on AR smart-glasses chips as Q2 revenue rises

  • Aug 4 - Austria's AT&S Q1 revenue rises 38% on strong demand in core markets

  • Aug 5 - Europe's established tech firms emerge as unexpected AI winners


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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