Kontron $KTN (-1.58%)
Kontron AG, a leading global provider of IoT technology, today announced its results for the third quarter and the first nine months of the 2024 financial year. The company recorded both revenue growth and a significant increase in earnings.
After Katek acquisition: Kontron posts record operating profit
The Austrian technology group Kontron has earned more in its operating business than ever before following the Katek takeover. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter soared by 70 percent year-on-year to EUR 59.4 million, as the SDax company announced in Linz on Wednesday.
According to the company, this was the highest figure in its history. At almost 428 million euros, Kontron's turnover between July and September was around 45 percent higher. On the bottom line, the company earned 24.4 million euros after minority interests - a good five million more than in the same period last year.
- Significant jump in EBITDA by 70.1% to EUR 59.4 million in Q3 2024
- Gross margin rises to 44.7% in Q3 2024 - transformation takes effect
- Significant sales growth of 44.9% to EUR 427.7 million in the third quarter of 2024
- Order backlog increases to EUR 2,056 million with a book-to-bill ratio of 1.21
Kontron achieved revenue growth of 44.9% to EUR 427.7 million in the third quarter of 2024 (Q3 2023: EUR 295.1 million) EBITDA rose by 70.1% to a new record of EUR 59.4 million (Q3 2023: EUR 34.9 million). The EBITDA margin increased again and reached 13.9% (Q3 2023: 11.8%). Consolidated net profit after minority interests increased by 28.5% to EUR 24.4 million (Q3 2023: EUR 19.0 million).
The pleasing earnings performance particularly highlights the growth in the Software + Solutions segment within the Group and Kontron's transformation into a technology leader, which was particularly evident in the growth of the gross margin. This reached 44.7% in the third quarter of 2024 after 42.5% in the second quarter of 2024 and 40.1% in the same quarter of the previous year.
Operating cash flow amounted to EUR 19.6 million in the third quarter (Q3 2023: EUR 26.8 million). However, factoring was reduced again. The operating cash flow, adjusted accordingly, rose to EUR 27.9 million. The order backlog increased to EUR 2,056 million as at September 30, 2024 and thus to a new record level compared to the December 31, 2023 figure of EUR 1,686.2 million.
Looking at the first nine months of the 2024 financial year, the pleasing performance in the third quarter of 2024 resulted in revenue of EUR 1,207.7 million, up 44.7% on the previous year's figure of EUR 834.4 million. EBITDA in the first nine months of 2024 amounted to EUR 141.4 million, up 47.5% on the previous year (9M 2023: EUR 95.9 million).
Consolidated net profit after minority interests rose to EUR 62.3 million after nine months of the current year (9M 2023: EUR 54.6 million) or EUR 1.01 per share (9M 2023: EUR 0.86).
Operating cash flow amounted to EUR 2.8 million and, adjusted for the reduction in factoring, even amounted to EUR 68.8 million after EUR 34.1 million in the same period of the previous year.
Hannes Niederhauser, CEO of Kontron AG, comments: "The successful 9 months in the current year show that we did not promise too much with our forecast for 2024. The integration of Katek is proceeding according to plan and is almost complete. The consistent focus on technology combined with the reduction of unprofitable orders has led to significantly higher margins of 44.7% in the third quarter. Against the background of the successful business development in the first nine months of 2024 and the robust demand, Kontron confirms the profit target of EUR 190 million
EBITDA for 2024 (50% increase compared to 2023). The high order backlog also guarantees a continuation of the growth trajectory for 2025."
