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The KION Group has concluded the fiscal year 2024 with strong results: With a slightly improved revenue of €11.5 billion (2023: €11.4 billion), adjusted EBIT rose significantly to €917 million (2023: €791 million). The adjusted EBIT margin was 8.0 percent (2023: 6.9 percent), and free cash flow was €702 million (2023: €715 million). To secure this momentum and maintain the company’s capacity for investments, the Executive Board of KION GROUP AG has today approved an efficiency program.
(Frankfurt) “KION is at a pivotal point in its history. Our preliminary results for the fiscal year 2024 show that we can achieve strong results in a challenging environment,” said Rob Smith, CEO of KION GROUP AG. “KION is a leading company in its markets, highly valued by our customers and partners. We are the first in the industry to work with physical AI from NVIDIA to create the warehouse of the future and reshape our industry. To further advance the development of our solutions in both segments and meet the future demands of our customers, we will build an even more resilient and agile company.”
Structural Measures for Optimization
The efficiency program takes into account developments in the macroeconomic environment. European economies are only slowly gaining momentum – this affects key customer industries in the Industrial Trucks & Services segment, where Chinese competitors are expanding their market position as a result of the past pandemic. While internal programs for continuous improvement of product, production, and service costs were already being implemented in 2024 and will continue, further structural measures aim to achieve a more efficient positioning of KION in Europe. This is expected to impact personnel needs and will be discussed with the relevant employee representatives as local laws require.
The efficiency program aims to achieve sustainable cost savings of approximately €140 to €160 million annually, fully effective in the fiscal year 2026. To implement the cost-saving measures, one-time expenses in the fiscal year 2025 are expected to amount to around €240 to €260 million. A significant portion of this is expected to be cash-effective in the fiscal year 2025.
Strengthening Competitiveness and Resilience
Christian Harm, CFO of KION GROUP AG, says: “To maintain our capacity for future-proof investments and strengthen our competitiveness and resilience, we need to optimize our cost base. This requires structural and sustainable measures.”
Photo: © KION
