Overview
Germany pump and valve maker's Q1 order intake rose 15% yr/yr, driven by Energy Market order
Q1 sales revenue grew 0.4% amid geopolitical turbulence and challenging environment
Q1 EBIT declined to €39.8 mln, impacted by SAP migration costs and external headwinds
Outlook
KSB says global economic headwinds and conflict in Iran are intensifying challenges
Company maintains confidence in meeting full-year forecast despite challenging environment
KSB continues to focus on strengths and prudent management in near-term outlook
Result Drivers
ENERGY MARKET ORDER - Major order for a power plant in Eastern Europe drove sharp increase in Q1 order intake in the Energy Market
GEOPOLITICAL TURBULENCE - Co said sales revenue and EBIT were impacted by geopolitical turbulences, including the conflict in Iran
SAP MIGRATION COSTS - Ongoing external costs for migration to SAP S/4HANA continued to weigh on EBIT
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EBIT
EUR 39.80 mln
Q1 Orders
EUR 1.01 bln
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy."
Wall Street's median 12-month price target for KSB SE & Co KGaA is €1,250.00, about 25% above its May 4 closing price of €1,000.00
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
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.)