Q2 and Half Year 2025 results
- Revenue HY1 2025 increased by 3% to EUR 157.5 million (HY1 2024: EUR 152.8 million like-for-like)
- Q2 2025 normalized EBITDA up 20% to EUR 12.6 million (Q2 2024: EUR 10.5 million)
- HY1 2025 normalized EBITDA rose by 14% to EUR 23.4 million (HY1 2024: EUR 20.6 million)
- Q2 2025 normalized EBITDA margin of 15.9% compared with 13.5% a year ago
- HY1 2025 normalized EBITDA margin improved to 14.9% of revenue (HY1 2024: 13.5%), driven by expanding added-value margin and cost discipline
- Net debt reduced to EUR 97.3 million (HY1 2024: EUR 144.7 million); leverage ratio down to 2.4 (HY1 2024: 2.8)
- Normalized free cash flow improved to EUR 5.7 million (HY1 2024: EUR 0.0), supported by lower capex and working capital discipline
Kendrion announces divestment of its China business, to complete repositioning as pure-play Industrial company
Key figures
| Reported (in EUR million) | Q2 2025 | Q2 2024 | delta3 | HY1 2025 | HY2 2024 | delta3 | |
| Revenue | 79.4 | 77.7 | 2% | 157.5 | 15.28 | 3% | |
| EBITDA | 12.3 | 8.2 | 50% | 22.8 | 18.3 | 25% | |
| EBITA | 8.1 | 4.5 | 80% |
| 14.7 | 10.7 | 37% |
| Net profit from continuing operations | 4.5 | 1.0 | 350% |
| 7.6 | 5.2 | 46% |
| Net profit from discontinued operations | (0.1) | 0.5 | NM |
| 0.0 | (1.0) | NM |
| Net profit | 4.4 | 1.5 | 193% |
| 7.6 | 4.2 | 81% |
| EBITDA as a % of revenue | 15.5% | 10.6% |
|
| 14.5% | 12.0% |
|
| EBITA as a % of revenue | 10.2% | 5.8% |
|
| 9.3% | 7.0% |
|
| Normalized (in EUR million)1 | Q2 2025 | Q2 2024 | delta3 | HY1 2025 | HY2 2024 | delta3 | |
| Revenue | 79.4 | 77.7 | 2% |
| 157.5 | 152.8 | 3% |
| EBITDA | 12.6 | 10.5 | 20% |
| 23.4 | 20.6 | 14% |
| EBITA | 8.4 | 6.8 | 24% |
| 15.3 | 13.0 | 18% |
| Net profit before amortization from continuing operations | 5.1 | 3.3 | 55% |
| 8.8 | 6.9 | 28% |
| Net profit before amortization from discontinued operations | - | 0.4 | NM |
| - | 2.6 | NM |
| Net profit before amortization | 5.1 | 3.7 | 38% |
| 8.8 | 9.5 | -7% |
| EBITDA as a % of revenue | 15.9% | 13.5% |
|
| 14.9% | 13.5% |
|
| EBITA as a % of revenue | 10.6% | 8.8% |
|
| 9.7% | 8.5% |
|
| Return on invested capital2 (12 months rolling) |
|
|
|
| 13.9% | 12.9% |
|
1 Results are normalized for costs and benefits outside the ordinary course of operations. A reconciliation from reported to normalized figures can be found in annex 5.
2 Invested capital excluding intangibles arising from acquisitions. 2024 is including discontinued operations.
3 NM: Not meaningful
Joep van Beurden, Kendrion CEO:
“I am pleased to report a strong Q2 and first half of 2025, despite the uncertain global economic circumstances. With a 3% increase in revenues and a significant improvement in our added-value margin to 52.6%, we have reached an EBITDA margin of 14.9% over the first half of 2025, significantly higher than in the same period of 2024. In Q2, we achieved an EBITDA margin of 15.9%, putting us firmly on track to reach our 15% EBITDA margin target from 2025 onward.
The improvement in profitability was realized through our drive to improve added-value, combined with strict cost discipline. Our Industrial Brakes business continued its gradual recovery, with added-value margin up 190 bps due to selective price increases and procurement initiatives. Industrial Actuators & Controls reported a decrease in revenues compared with a strong HY1 2024. Profitability remained healthy, with a 160 bps increase in added-value margin. The Mobility segment experienced robust growth in China and improved profitability, supported by price increases in Europe.
Today – in a separate press release - we have announced the divestment of our China business to our Suzhou-based management supported by a consortium of investors. In China, the main growth opportunity is in Automotive, which is no longer part of our strategic focus. The transaction allows us to concentrate fully on our two Industrial business groups while creating additional financial headroom for reinvestment in our Industrial activities. After completion of the transaction, we intend to issue a special dividend of EUR 1.00 per share and commence a share buyback programme of up to EUR 10 million.
With our strong HY1 performance, solid balance sheet, and clear focus on our Industrial segments, I am confident in our ability to deliver profitable growth in the coming years.”
Progress on strategy
Kendrion is a global leader in innovative actuator solutions, dedicated to industrial markets with a strong focus on electrification, cleaner energy, and other high-potential niches. Our strategy prioritizes profitability over growth, concentrating on industrial market segments aligned with our goal of achieving at least 15% EBITDA from 2025 onwards.
To achieve this target, Kendrion will continue its efforts to significantly improve the added-value margin, combined with strict cost control through optimized operational expenses. Good progress has already been made in the first half of this year. The ongoing transition to a simpler, more cost-effective cloud-based Enterprise Resource Planning (ERP) system is expected to further streamline Kendrion’s operations.
In Industrial Brakes (IB), we are capitalizing on the growing market for electromotors and electrified solutions in sectors such as intralogistics, robotics, and wind power. Industrial Actuators & Controls (IAC) encompasses a diverse range of products, including inductive heating systems, industrial locks, and beverage dispensing valves. Mobility is reported separately from the Industrial business.
Despite ongoing geopolitical uncertainties affecting the global economy, Kendrion remains optimistic about the long-term growth potential of its Industrial solutions. These solutions play a vital role in advancing global electrification and sustainable energy initiatives.
Agreement to sell China-based business
Today, in a separate press release, Kendrion announced that it has entered into an agreement to sell its China-based business in Suzhou to local management, supported by a consortium of investors. With this sale, Kendrion completes its strategic repositioning as a pure-play Industrial company. The transaction is expected to close within the next 3 months and implies an enterprise value of EUR 70 million on a cash and debt-free basis. After completion of the transaction, part of the proceeds will be returned to shareholders through a combination of a special dividend of EUR 1.00 per share and a share buyback programme of up to EUR 10 million. With this transaction, Kendrion will focus its product development resources entirely on industrial opportunities. More information can be found here: link to press release.
Financial and operational review
Revenue
Q2 2025
In the second quarter of 2025, revenue totaled EUR 79.4 million, a 2% increase compared with EUR 77.7 million in Q2 2024. Currency translation reduced reported revenue by approximately 1%. Revenue in Industrial Brakes (IB) slightly increased to EUR 30.6 million (Q2 2024: EUR 30.2 million). Revenue in IAC declined by 3% to EUR 31.2 million (Q2 2024: EUR 32.2 million), mainly due to softness in specific market segments. Revenue in the Mobility segment increased by 15% to EUR 17.6 million (Q2 2024: EUR 15.3 million), primarily driven by the ramp-up of new projects in China.
HY1 2025
For the first half of 2025, revenue totaled EUR 157.5 million, a 3% increase compared with EUR 152.8 million from continued operations in HY1 2024. IB revenue increased by 4% to EUR 60.7 million (HY1 2024: EUR 58.4 million), reflecting a gradual market recovery. IAC revenue decreased by 6% to EUR 60.8 million (HY1 2024: EUR 64.5 million), compared to a strong HY1 2024. Mobility revenues increased to EUR 36.0 million, up 20% from HY1 2024 (EUR 29.9 million), fully driven by the ramp-up of mobility projects in China.
Results
Q2 2025
Normalized operating result before depreciation and amortization (EBITDA) was EUR 12.6 million, representing 15.9% of revenue, compared with EUR 10.5 million (13.5%) in Q2 2024. Profitability improved primarily due to a higher added-value margin, which rose to 52.7% from 50.0% last year. The added-value increased in IAC, IB and Mobility.
Net operating costs were 4% higher, mainly due to wage inflation and the comparison base, as Q2 2024 had short-term work measures in place in IB. Increased operating expenses were almost entirely offset by higher other operating income. Depreciation was EUR 4.2 million (Q2 2024: EUR 3.7 million), resulting in a normalized EBITA of EUR 8.4 million (Q2 2024: EUR 6.8 million). A total of EUR 0.3 million (EUR 0.2 million net of tax) in operating costs was normalized from the second-quarter results related to restructuring charges.
HY1 2025
Normalized EBITDA for the first half of the year was EUR 23.4 million, or 14.9% of revenue, up from EUR 20.6 million (13.5% margin) in HY1 2024. This underscores the effectiveness of our pricing strategies, procurement initiatives, and cost discipline.
Depreciation charges were EUR 8.1 million in HY1 2025 (HY1 2024: EUR 7.6 million), resulting in a normalized EBITA of EUR 15.3 million, up 18% from EUR 13.0 in HY1 2024. Amortization charges on intangibles arising from acquisitions stood at EUR 1.1 million, compared with EUR 1.6 million in HY1 2024. Total finance charges were EUR 3.0 million in the first six months, slightly up from EUR 2.8 million from continued operations in HY1 2024 due to unfavorable currency results. Tax charges on normalized income were EUR 3.0 million (HY1 2024: EUR 2.9 million), leading to an effective tax rate of 27.3% (HY1 2024: 33.7%). Normalized net profit before amortization charges arising from acquisitions amounted to EUR 8.8 million, up 28% from EUR 6.9 million in HY1 2024 from continued operations.
A total of EUR 0.6 million costs (EUR 0.4 million net of tax) were normalized in HY1 2025, primarily related to restructuring charges.
Normalized EBITDA as a percentage of revenue in HY1 2025 would have been 15.4% on a pro forma basis, when excluding China, with the impact of dis-synergies expected to be fully offset.”
Financial position
At the end of Q2 2025, total net debt amounted to EUR 97.3 million, stable compared with Q1 2025, and well below the EUR 144.7 million at the end of HY1 2024. The leverage ratio further decreased to 2.4, down from 2.5 in the previous quarter and 2.8 at the end of HY1 2024, well below the covenant level of 3.25.
Free cash flow in HY1 improved strongly to EUR 9.5 million, compared with EUR 0.0 million in the first half of 2024. Normalized free cash flow, excluding the final Solero payment and restructuring costs, was EUR 5.7 million. The improvement was driven by lower capital expenditure and continued working capital discipline.
Number of employees
At the end of Q2 2025, Kendrion employed 1,575 FTEs, compared with 1,546 at the end of Q1 2025 and 1,609 at the end of FY 2024. The reduction during HY1 reflects organizational rightsizing following the Automotive divestment in 2024 and further alignment of overhead costs. At quarter-end, our workforce comprised 717 indirect employees and 858 direct employees, of which 92 were FTE temporary workers.
Outlook
Kendrion expects trading conditions in the second half of 2025 to remain broadly consistent with those seen in the first six months. Some European markets are likely to remain weak, demand in the US is expected to be stable, and Asia presents a mixed picture. Despite these uncertainties, the company is well-positioned to continue improving profitability, supported by its focused Industrial strategy and local-for-local supply chain structure.
In the short term, Kendrion will maintain its emphasis on improving added-value margins, strict cost discipline, and operational efficiency. Following the agreement to divest the China business, Kendrion will focus fully on IB and IAC. Part of the proceeds will be returned to shareholders, while the transaction will also allow Kendrion to further strengthen the balance sheet and reinvest in Industrial activities.
Looking further ahead, Kendrion is confident that its focus on industrial markets, strong niche positions, and alignment with long-term trends such as electrification, automation, and cleaner energy, will enable the company to deliver sustainable and profitable growth. The company remains confident in achieving its strategic financial targets, including an EBITDA margin of 15–18% from 2025 onward, a return on investment (ROI) of 23–27% by 2027, and annual dividend payments of at least 50% of normalized net profit starting in 2025.
Analysts’ meeting and audio webcast
Concurrently with this announcement, Kendrion has announced the transaction to divest of its China business. CEO Joep van Beurden and CFO Jeroen Hemmen will present the HY1 2025 results and provide an update on the company’s strategic and financial progress in an analysts’ webcast at 11:00 a.m. CET today.
The webcast will also cover the announced divestment of Kendrion’s China business and its implications for the company’s strategic repositioning as a pure-play Industrial company. The live audio webcast can be followed via www.kendrion.com. A recording will be available from 2:00 p.m. CET onwards.
Profile of Kendrion N.V.
Kendrion develops, manufactures, and markets high-quality electromagnetic systems and components for a broad range of industrial applications. For more than a century, we have engineered precision parts for the world's leading innovators in industrial markets and selected mobility applications. As a leading technology pioneer, Kendrion invents, designs, and manufactures complex components and customized systems as well as local solutions on demand.
We are committed to the engineering challenges of tomorrow, and taking responsibility for how we source, manufacture, and conduct business is embedded into our culture of innovation. Headquartered in the Netherlands and listed on the Amsterdam stock exchange, Kendrion’s expertise extends across Europe, to the Americas, and Asia. Created with passion and engineered with precision—our work drives progress worldwide.
Amsterdam, 27 August 2025
The Executive Board
For more information, please contact:
Kendrion N.V.
Mr. Joep van Beurden
Chief Executive Officer
Tel: +31 6 82 56 85 65
Email: IR@kendrion.com