Krones Confirms Guidance but Flags Netstal Drag and Geopolitical Uncertainty

Order intake up 4.5%, but management leans toward lower end; Netstal margins remain dilutive; China/India expansion on track.

KRN.DE · Earnings Call · 2026-07-29

Half-Year Results

Krones delivered a resilient first half in 2026, with order intake up 4.5% year-on-year and revenue growing 1.8% on an FX adjusted basis. EBITDA margin improved from 10.6% to 10.8%. Despite this, management confirmed full-year guidance but signaled a cautious tone.

“We are more comfortable towards the lower end.” — Uta Anders, CFO or Finance Executive · 2026-07-29 This prudence stems from delayed customer decisions amid the Iran war and volatile energy costs. CFO Uta Anders noted that raw material costs are being influenced by energy prices, although hedging has helped.

Netstal Under Pressure

The injection molding subsidiary Netstal continues to underperform, missing its margin targets and diluting group profitability.

On the other hand, with lower volume, profitability is not on the level which we had expected. You may recall that 2 years ago, we had said they will be on Krones' margin level in 2026. No, they are not. They are diluting.
Uta Anders, CFO or Finance Executive · 2026-07-29

This is a key drag on the 2028 EBIT margin target of 11-13%. Management acknowledged that Netstal's order intake from the US has slowed due to competition and tariffs, but remains committed to its strategy.

Expansion and FX

Krones is progressing on its China and India expansion, with the Chinese plant opening in Q4 2026. “Our investments in that region... are paying off right now.” — Thomas Ricker, CEO · 2026-07-29 CEO Thomas Ricker highlighted the growth potential in these markets, though Netstal remains a question mark for the medium-term targets.

“there is a lot of uncertainty because oil price and energy prices are going up and down very fast at the moment.” — Thomas Ricker, CEO · 2026-07-29 This uncertainty is prolonging customer decision-making, but the robust pipeline provides confidence.

Previously, management had flagged FX as a EUR 100 million headwind for 2025. “Obviously, FX has come down quite substantially again.” — Constantin Hesse · 2026-07-29 The company expects a smaller FX impact in H2 2026.

In the prior quarter, Christoph Klenk noted on China: “there's a better fundamental on which we sit in terms of the local supply” — Christoph Klenk, CEO or Managing Director · 2026-02-19, underscoring the strategic importance of local production.

Overall, Krones is navigating a challenging macro environment, but the confirmation of growth guidance suggests confidence in its diversified portfolio. However, Netstal's persistent underperformance and geopolitical risks keep the outlook guarded.