All Stories
2 min

KION Group delivers strong earnings and free cash flow in the first nine months of 2023

The KION Group achieved a strong increase in its profitability and free cash flow in the first nine months of this year. These results were mainly driven by a continued momentum in the Industrial Trucks & Services (ITS) segment. The primary reasons for this impressive performance were the stabilization of the supply chain enabling higher production volumes, and the positive effects of the measures initiated in 2022 to boost commercial and operational agility.


Consolidated revenue amounted to €8.347 billion in the first three quarters of 2023, a year-on-year rise of 1.3 percent (Q1–Q3 2022: €8.243 billion). The proportion of consolidated revenue attributable to the service business increased to 44.6 percent (Q1–Q3 2022: 41.7 percent).

Total revenue in the Industrial Trucks & Services segment increased by 16.5 percent to €6.160 billion (Q1–Q3 2022: €5.288 billion). The systematic processing of the sizeable order book built in 2022 had a positive impact on revenue in the segment. In addition, price increases implemented in the previous year made a substantial contribution to revenue growth. At 48.1 percent, the proportion of the segment’s external revenue attributable to the service business was lower than in the prior-year period (Q1–Q3 2022: 51.7 percent).

The significant upward trajectory of KION Group is once again underscored by these strong results for the first nine months of this year. This strong momentum reinforces our leading position in intralogistics solutions for customers worldwide.

Rob Smith, Chief Executive Officer of KION GROUP AG

In the Supply Chain Solutions segment, total revenue contracted by 25.4 percent to €2.216 billion (Q1–Q3 2022: €2.970 billion). Whilst the stable and higher-margin service business (customer services) registered a proportionate increase to 34.9 percent (Q1–Q3 2022: 23.9 percent) of total revenue muted customer demand in the project business (business solutions) in the preceding quarters led to a drop in revenue. Moreover, the projects secured in the reporting period were predominantly of a long-term nature, from which the revenue will be recognized over an extended period.

Christian Harm comments on our results

Adjusted EBIT for the nine-month period increased to €571.9 million (Q1–Q3 2022: €210.6 million). Price adjustments introduced in 2022 and, on the supply side, the general improvement in the availability of materials and stable costs contributed to these strong earnings. Reflecting this, the KION Group’s adjusted EBIT margin significantly increased to 6.9 percent (Q1–Q3 2022: 2.6 percent).

The adjusted EBIT of the Industrial Trucks & Services segment more than doubled to €613.6 million (Q1–Q3 2022: €300.4 million). This was partly due to the earnings effect from increases in volumes and prices and the efficiency gains in production. The ITS segment’s adjusted EBIT margin returned to double digits to 10.0 percent for the first nine months of the year (Q1–Q3 2022: 5.7 percent).

Adjusted EBIT for the Supply Chain Solutions segment was €30.7 million in the first three quarters of 2023 (Q1–Q3 2022: € minus 32.2 million). The segment’s earnings improved in the third quarter with the successive completion of lower-margin orders. The adjusted EBIT margin for the first nine months of 2023 turned positive to 1.4 percent (Q1–Q3 2022: minus 1.1 percent).

The Group’s net income for the period amounted to €228.3 million, which was up by €161.4 million year on year (Q1–Q3 2022: €66.9 million). The Group generated free cash flow of €329.3 million (Q1–Q3 2022: € minus 971.9 million) during the reporting period.

Changes in the Executive Board

Determined to expand the KION Group's technology leadership in the intralogistics industry, the Supervisory Board of KION GROUP AG has appointed Michael Larsson (58) as Executive Board member responsible for Supply Chain Solutions (SCS) and for the region Americas of the segment Industrial Trucks & Services (ITS).

At the same time, the Supervisory Board has appointed Ching Pong Quek (56) as the new Chief Technology Officer (CTO) of the KION Group. In his expanded responsibilities on Board level, Quek will continue to be responsible for ITS in the region APAC and hand over the responsibility of ITS in the region Americas to Michael Larsson.

Both appointments will be effective as of 1 January 2024.