KION GROUP AG Initiates Efficiency Program Impacting 2025 Financial Year

KION GROUP AG is set to launch an efficiency program aimed at achieving sustainable cost savings of EUR 140 to 160 million annually, starting fully in the 2026 financial year. This measure is designed to enhance the company's competitiveness and prepare for future investments. The program will involve adapting organizational structures and streamlining work processes, affecting personnel requirements subject to local laws and employee consultations.

The initiative will incur one-off expenses of approximately EUR 240 to 260 million in the 2025 financial year, which will impact free cash flow and net income, leading these to fall short of market expectations.

For the 2024 financial year, preliminary results show KION’s net sales at around EUR 11,503 million, with an adjusted EBIT of approximately EUR 917 million. The adjusted EBIT margin has improved to about 8.0%. The company expects to publish its final 2024 results and detailed 2025 outlook on February 27, 2025.