Krones Group Annual Report 2025

Dear shareholders and friends of Krones,

2025 was a year of many challenges, which the ­Krones team once again successfully navigated. Krones continued on its profitable growth path and met the forecasts for all financial key performance indicators. In view of the many uncertainties, that cannot be taken for granted. Moreover, in September 2025, Krones showcased its role as a global market leader and innovator at drinktec, the world’s leading trade fair for the beverage and liquid food industry. 

The willingness of customers from the international food and beverage industry to invest remained robust at a high level, despite the critical general economic conditions. Demand was once again supported in the reporting period by the stable long-term growth of the beverage and liquid food market, which is little affected by economic cycles. As a global leader with a broad and innovative range of products and services, Krones ­benefits from the positive overall market development.

Krones continued its profitable growth in 2025 – revenue and profitability further improved as forecast

In a challenging economic environment, and with strict adherence to the pricing strategy, order intake, at €5.56 billion, once again reached a very good level in the past financial year (previous year: €5.46 billion). The order backlog decreased only slightly by 2.3% compared to the previous year’s high figure and amounted to €4.19 billion at the end of 2025. We thus have a solid basis to ensure production capacity utilisation well into the third quarter of 2026.

Revenue also developed positively, increasing by 7.0% in the past financial year to €5.66 billion. The company thus achieved its growth target of 7% to 9% for the full year 2025. Stable material availability and the high degree of flexibility of our workforce enabled us to process and complete orders more quickly and further reduce delivery times. 

EBITDA (earnings before interest, taxes, depreciation and amortisation) grew faster than revenue than revenue in the reporting year. Alongside higher ­efficiency in production, this was due to strategic measures to improve performance and cost structures. Krones improved profitability, measured by the EBITDA margin, to 10.6% in the reporting year (previous year: 10.1%), within the guidance range of 10.2% to 10.8%. Return on capital employed (ROCE) increased from 18.2% to 19.1% (guidance: 18% to 20%).

Shareholders to benefit from the company’s success with dividend of €2.80 per share

Our shareholders are to benefit from the good business results. Krones will therefore increase the dividend in line with earnings. Shareholders are to receive a dividend of €2.80 per share for the 2025 financial year, up 7.7% from €2.60 per share in the previous year.

Economic and political risks continue in 2026

Despite the good business figures and the overall positive outlook for our markets, economic and political uncertainties are affecting customers’ investment decisions in some cases. The risk factors include global tariff policies, which could lead to a decline in world trade. Geopolitical tensions could have a negative impact on supply chains, energy and commodity prices, and ultimately the global economy. Global uncertainties are also the reason why the experts at the International Monetary Fund (IMF) are forecasting global economic growth of only 3.3% for the current year. This is well below the long-term average growth of 3.7% for the global economy (2000–2019). 

Executive Board expects continuation of profitable growth path in 2026 – clear focus on mid-term targets

Despite the continuing uncertainties, Krones looks ahead to 2026 with realistic optimism. We have a solid order backlog, and demand for our products and ­services remained robust going into the year. Based on the continuing positive market trend and Krones’ strong market position, the Executive Board therefore expects consolidated revenue adjusted for currency translation effects to increase by between 3% and 5% in 2026.

Krones plans to further improve profitability this year compared to 2025. In ­addition to higher revenue, further efficiency improvements and the ongoing implementation of cost optimisation measures will strengthen profitability. We will also maintain our disciplined pricing strategy for our innovative and value-added products and services in 2026. At group level for the current financial year overall, we are forecasting an EBITDA margin of 10.7% to 11.1%. The forecast for the third financial target, ROCE, is 19% to 20%. 

Based on the planning for 2026, the generally robust and less cyclical development of the food and beverage market and our good positioning, we believe Krones is well on track to achieve the mid-term financial targets by 2028. Provided that no unexpected negative events slow demand, the company plans to increase consolidated revenue to around €7 billion by 2028. The mid-term target for the EBITDA margin is between 11% and 13%. For ROCE, Krones is aiming for a figure of at least 20% by 2028. 

Krones underscored its innovative strength at drinktec 2025

From 15 to 19 September, Krones showcased its innovative strength at drinktec. The highlight of the trade fair was our new, technologically advanced Ingeniq line concept (formerly “Line of the Future”) with digital connectivity and a trailblazing service approach. Customers also gained an impressive insight into other innovations presented under the slogan “Solutions beyond tomorrow”, including high-quality technologies and products for beverage production, energy and media-efficient filling and packaging systems, and fully automated intralogistics solutions.

Continued importance of sustainability for Krones and customers

Economic sustainability remains an important driver of innovation and growth in our industry. Cutting operating costs, reducing emissions and conserving resources are key customer requirements to be met by our products and services. With cost-saving, sustainable technologies and products, we create added value for customers and contribute to a world worth living in. 

Krones is also committed to resource-efficiency in the company’s own operations. This is why we have set ourselves the ambitious target of net zero emissions by 2040. On the way towards that target, we once again improved many of our sustainability metrics in the reporting year. Further details can be found in the non-financial statement.

High capital expenditure improves efficiency and resilience

To continue growing profitably in the medium and long term, the company is investing in digitalisation, product innovation, streamlined internal processes and economic sustainability as a growth driver. By further expanding our global value chain, particularly in the USA, China and India, we are also improving our cost structures and increasing our flexibility and resilience. This helps us to respond quickly and flexibly to potential trade conflicts or other crises. Furthermore, the company will be investing heavily over the coming years in production and production logistics at its German sites. Germany remains a very important production and innovation location for Krones.

A strong Krones team: the basis for a successful future

The expertise and motivation of our employees are crucial to Krones’ successful future. With their commitment, knowledge, and creativity, they help us to reliably support our customers in solving their problems and implementing their long-term strategies. On behalf of the entire Executive Board, I would like to take this opportunity to thank all Krones Group employees worldwide for their daily commitment.

Thanks to its expertise, flexibility and strong team spirit, the Krones team is well positioned to continue operating successfully and seize new opportunities in this rapidly changing environment. The entire Krones team will build on the positive momentum from drinktec, and will continue to inspire with “Solutions beyond tomorrow” to the benefit of both Krones and our customers.

Christoph Klenk
CEO