Kalmar 's half-year financial report January–June 2025: Strong performance and order intake in the second quarter

KALMAR CORPORATION, HALF-YEAR FINANCIAL REPORT JANUARY–JUNE 2025, 25 JULY 2025 AT 9:00 AM (EEST)

Kalmar 's half-year financial report January–June 2025:Strong performance and order intake in the second quarter

• Overall favourable demand environment led to continued strong order intake
• Equipment segment orders increased by 28 percent year-on-year
• Resilient comparable operating profit margin, 13.1 percent, supported by strong equipment profitability of 13.9 percent
• Trade tensions increasing uncertainty of the global growth outlook
• Guidance for 2025 unchanged.
  
  

April–June 2025 in brief:

• Orders received increased by 20 percent and totalled EUR 450 (375) million
• Order book amounted to EUR 1,029 (31 Dec 2024: 955) million at the end of the period
• Sales increased by 1 percent and totalled EUR 420 (417) million
• Eco portfolio¹ sales represented 44 (40) percent of consolidated sales and increased by 9 percent, totalling EUR 184 (168) million
• Operating profit was EUR 54 (36) million, representing 12.8 (8.6) percent of sales. The operating profit includes items affecting comparability worth EUR -1 (-16) million
• Comparable operating profit amounted to EUR 55 (52) million representing 13.1 (12.6) percent of sales, an increase of 5 percent
• Cash flow from operations before finance items and taxes totalled EUR 22 (11) million
• Profit for the period amounted to EUR 39 (31) million
• Basic earnings per share was EUR 0.61 (0.49)²
• Interest-bearing net debt to EBITDA³ was 0.4x (n/a).

January–June 2025 in brief:

• Orders received increased by 20 percent and totalled EUR 931 (777) million
• Order book amounted to EUR 1,029 (31 Dec 2024: 955) million at the end of the period
• Sales decreased by 4 percent and totalled EUR 818 (856) million
• Eco portfolio sales represented 43 (40) percent of consolidated sales and increased by 3 percent, totalling EUR 353 (344) million
• Operating profit was EUR 100 (82) million, representing 12.2 (9.5) percent of sales. The operating profit includes items affecting comparability worth EUR -3 (-25) million
• Comparable operating profit amounted to EUR 103 (106) million representing 12.6 (12.4) percent of sales, a decrease of 3 percent
• Cash flow from operations before finance items and taxes totalled EUR 107 (113) million
• Profit for the period amounted to EUR 73 (65) million
• Basic earnings per share was EUR 1.14 (1.01).²
  
  

Guidance for 2025

Kalmar expects its comparable operating profit margin to be above 12 percent in 2025.

President & CEO Sami Niiranen:

The second quarter of 2025 was a strong quarter for Kalmar despite increased trade tensions and a challenging geopolitical landscape. I’m proud of Kalmar 's performance, continued strong order intake and steady progress of key strategic initiatives. We delivered a robust quarter with a resilient comparable operating profit margin of 13.1 percent, underpinned by strong equipment profitability of 13.9 percent. This solid performance was achieved amidst an overall favourable global demand environment, though it became somewhat subdued in the Americas towards the end of the quarter. We also communicated several key achievements that support our journey towards sustainable and profitable growth.

Orders received amounted to EUR 450 million, reflecting positive activity and growth in both Equipment and Services. The order book remained on a good level. Despite prevailing uncertainties, the demand picture overall was favourable during the quarter. In ports and terminals the demand remained strong globally. Overall, we saw strong growth in Europe and solid performance in AMEA⁴. However, the US distribution end-customer segment demand was hampered by increased market uncertainty.

Kalmar’s financial performance for the second quarter was solid. Sales returned to modest growth, even with some softness in Americas. Our focus on commercial and operational excellence has allowed us to maintain strong profitability. The comparable operating profit amounted to EUR 54.9 million. Cash flow from operations before finance items and taxes had quarterly fluctuations due to timing of large orders and was EUR 21.9 million in the second quarter while last twelve months cash conversion stayed strong at 95 percent. Net debt has decreased by 42 percent during the last year from EUR 157 million to EUR 91 million. Our leverage is at a healthy 0.4x. The Driving Excellence initiative has progressed very well, securing approximately EUR 16 million of annualised gross efficiency improvements during the first half of 2025. A majority of the improvements secured so far originate from successful sourcing activities.

While the Q2 performance was strong, the global landscape continues to be volatile. The world today presents an increased level of uncertainties related to tariffs, ongoing geopolitical tensions, and the global growth outlook. It is still difficult to draw definitive conclusions on how these factors will affect our industry, the demand environment, and global trade. However, we are monitoring the situation closely and have implemented tariff surcharges or tariff related price adjustments across divisions to a majority of our customers. We are prepared to continue to act swiftly if needed.

During the second quarter, our strategic focus on innovation and sustainability yielded significant results, with our eco portfolio maintaining a high share of sales at 44%. We were proud to announce that the Science Based Targets initiative (SBTi) has approved Kalmar’s near- and long-term science-based emissions reduction targets, verifying our net-zero science-based target by 2045. These ambitious targets align with the Paris Agreement, solidifying Kalmar’s commitment to limiting global temperature rise to 1.5°C.

In terms of product and service innovation, we introduced several significant advancements related to OEM and equipment-type agnostic automation systems, service driven digital applications and second-generation lithium-ion (Li-ion) battery solutions for our electrically powered equipment including reachstackers, empty container handlers and forklifts.

Moving forward, uncertainties, especially concerning global growth and trade tensions, remain. We keep our guidance for 2025 unchanged. Our focus remains steadfast on executing our strategy, staying close to our customers, and continuing to deliver the best heavy material handling solutions globally. We are on a good track with a strong first half-year performance. Our extensive reach, with an installed base of 68,000 machines and presence in over 120 countries, remains a significant asset in driving future service growth through innovative offerings and digital solutions.

Vision and strategy

Kalmar is a market leader in heavy material handling equipment with deep-rooted foundations in customer proximity, attractive market, experienced and talented people and strong financial profile.

Kalmar’s sales and service network covers over 120 countries, supporting its globally dispersed customer base and extensive installed base of 68,000 machines globally. The company operates mainly through direct sales and a strong global network of dealers. With an assembly-based manufacturing model with four factories and two innovation centers, Kalmar prioritizes building strong and enduring relationships with its material suppliers across the globe. Kalmar’s workforce comprises around 5,200 employees of which 1,400 are service engineers. The company believes that attracting and retaining top talent is essential to being the most valued business partner for its customers and the employer of choice for current and future employees. Kalmar is dedicated to responsible business practices and expects its suppliers and business partners to uphold the same high legal and ethical standards.

The industry is facing several megatrends, which are driving renewal across the whole scene. This generates opportunities for Kalmar to provide solutions and solve the challenges customers face. Some of the key opportunities that Kalmar is prepared to address are:

• Safety
• Productivity
• Decarbonisation and electrification
• Changing logistics landscape
• Labour shortage
• Intelligent operations.

To address these opportunities and to create added customer value Kalmar is focusing on three strategic areas:

• Investing in sustainable innovations in the area of decarbonised and electric equipment, digital solutions and automation

• Growing services and expanding our aftermarket footprint with a focus on harvesting on our vast installed base, improving capture rate, increasing the share of recurring business through service contracts and creating customer lifecycle value through an intelligent service offering

• Driving excellence by improving profitability and cash flow generation via sourcing optimisation and process improvement to fund further investments into R&D and organic growth, and distributing profits to shareholders.

Performance targets

Kalmar 's Board of Directors has set the following performance targets for 2028:

Financial targets

• Sales growth of 5 percent p.a. over the cycle;
• Comparable operating profit margin of 15 percent;
• ROCE above 25 percent;
  
  

Capital structure and sustainability framework

• Leverage (Net debt to EBITDA) under 2x;
• Dividend payout ratio of 30-50 percent per annum;
• Aligned with SBTi targets with 1.5 °C commitment.⁵

Corporate information and basis for preparation

Kalmar Corporation was formed as a result of the partial demerger from Cargotec Corporation (“demerger”), which was completed on 30 June 2024. The trading in Kalmar Corporation shares on the main market of Nasdaq Helsinki commenced on 1 July 2024.

Financial information prior to the demerger is presented on a carve-out basis. The carve-out financial statements do not necessarily reflect what the financials would have been had Kalmar operated as an independent consolidated group and had it therefore presented stand-alone consolidated financial information. Further, the carve-out financial information may not be indicative of Kalmar’s future performance. The carve-out reporting principles are described in Note 2. Basis of preparation.

Kalmar’s key figures

Periods prior to the demerger on 30 June 2024 are presented on a carve-out basis. Gearing, % and interest bearing net debt / EBITDA are presented only from 31 December 2024 onwards as the previous periods with carve-out information do not reflect the capital structure and financing of Kalmar Group. Eco portfolio orders received are presented starting from the first quarter of 2025.

Reporting segments’ key figures

Orders received

Order book

Sales

Kalmar management follows external sales for segments.

Operating profit

Comparable operating profit

Comparable operating profit, %

Telephone conference for analysts, investors and media

A live international telephone conference for analysts, investors and media will be arranged on the publishing day at 10:00 a.m. EEST. The event will be held in English. The report will be presented by the President & CEO Sami Niiranen and CFO Sakari Ahdekivi. The presentation material will be available at www.kalmarglobal.com by the latest 10:00 a.m. EEST.

To ask questions, please join the teleconference by registering via the following link:
https://events.inderes.com/kalmar/q2-2025/dial-in. After the registration, the conference phone numbers and a conference ID to access the conference will be provided. Questions can be presented during the conference.

The event can also be viewed as a live webcast at https://kalmar.events.inderes.com/q2-2025/. The conference call will be recorded and an on-demand version of the conference will be published at Kalmar’s website later during the day.

Please note that by dialling to the conference call, the participant agrees that personal information such as name and company name will be collected.

For further information, please contact:

Sakari Ahdekivi, CFO, tel. +358 50 400 3557
Carina Geber-Teir, SVP, IR, Marketing and Communications, tel. +358 40 502 4697

Kalmar (Nasdaq Helsinki: KALMAR) is moving goods in critical supply chains around the world, with the vision to be the forerunner in sustainable material handling equipment and services. The company offers a wide range of industry shaping heavy material handling equipment and services to ports and terminals, distribution centres, manufacturing and heavy logistics. Headquartered in Helsinki, Finland, Kalmar operates globally in over 120 countries and employs approximately 5,200 people. In 2024, the company 's sales totalled approximately EUR 1.7 billion. www.kalmarglobal.com

¹ The eco portfolio includes the equipment and services that are defined to be either aligned with the EU Taxonomy or expected to be aligned in the near future.

² Periods before the listing of Kalmar Corporation on 1 July 2024 are calculated based on the number of shares at the listing moment.

³ EBITDA last 12 months.

⁴ AMEA = Asia, Middle-East, Africa

⁵ Plan following criteria of the Science Based Targets initiative.

Attachment

• Kalmar half-year financial report January-June 2025 en

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