Investing.com -- Krones AG (ETR:KRNG) on Friday reported double-digit revenue and profit growth in the first quarter of 2025 and maintained its full-year financial targets, citing continued strength in customer demand despite ongoing global economic challenges.
Shares of the German packaging and bottling machine manufacturer were up 2.2% at 04:50 ET (08:50 GMT).
Order intake for the first three months totaled €1.44 billion, up 6.8% from €1.34 billion in the fourth quarter of 2024.
The figure marked a 3.2% decrease from €1.48 billion in the same period a year earlier. The company said customer order activity remained stable, with a book-to-bill ratio of 1.02.
Revenue rose 13.1% year over year to €1.41 billion, compared with €1.25 billion in the first quarter of 2024.
Krones said its acquisition of Netstal Maschinen AG, consolidated since March 28, 2024, contributed to the increase.
Excluding the acquisition, revenue growth remained within the company’s full-year guidance range of 7% to 9%.
EBITDA rose 19.1% to €149.3 million, up from €125.4 million in the prior-year period. The EBITDA margin improved to 10.6%, compared with 10.1% a year earlier. Krones said the Netstal acquisition had a slightly dilutive effect on the margin.
Earnings before taxes increased 21.2% to €107.9 million, up from €89 million. The EBT margin rose to 7.7%, compared with 7.1% in the same quarter last year.
Consolidated net income grew 15.3% to €75.9 million, compared with €65.8 million. Earnings per share rose to €2.40, up from €2.08.
Free cash flow before mergers and acquisitions totaled €165.2 million, down from €184.2 million in the first quarter of 2024.
The company’s net cash position stood at €589.7 million at the end of March, compared with €438.7 million a year earlier. Krones reported approximately €850 million in unused credit lines.
Return on capital employed improved to 20.5%, up from 19.0%, which the company attributed to higher earnings before interest and taxes.
Krones confirmed its full-year 2025 financial targets, including revenue growth of 7% to 9%, an EBITDA margin between 10.2% and 10.8%, and ROCE between 18% and 20%.
“The escalating tariff conflict since April has significantly clouded the overall global economic outlook. Geopolitical risks also persist in Europe, the Middle East and other parts of the world. Material shortages and problems in global supply chains as a result of trade conflicts and military action remain a source of uncertainty,” the company said in a statement.