All Stories
2 min

KION Group increases profitability in the first half of the year and raises guidance

The KION Group continued to increase its profitability in the first half of the year driven by the further strong momentum of its Industrial Trucks & Services (ITS) segment. The improved supply chain situation and successful measures to increase commercial and operational agility are key reasons for the positive result.


Consolidated revenue advanced by 1.5 percent year on year to €5.617 billion in the reporting period (H1 2022: €5.537 billion). The proportion of consolidated revenue attributable to the service business grew to 44.3 per cent (H1 2022: 40.5 percent). The 19.9 percent increase in revenue in the ITS segment to €4.135 billion (previous year: €3.445 billion) resulted mainly from measures to improve material availability. Price increases implemented in 2022 also had a positive impact. Revenue from the service business went up as volumes grew across all service categories.

Revenue in the Supply Chain Solutions (SCS) segment, however, fell by 28.6 percent year on year to €1.497 billion (H1 2022: €2.096 billion). This was primarily due to muted customer demand in the project business (business solutions) in the previous quarters. By contrast, revenue development in the service business (customer services) was very encouraging again increasing by 13.5 percent compared to the same period last year.

Christian Harm comments on our results

The Group’s adjusted EBIT rose by 11.7 percent to €348.3 million in the first half of 2023 (H1 2022: €311.7 million). This increased the adjusted EBIT margin to 6.2 percent (H1 2022: 5.6 percent). Adjusted EBIT for the ITS segment improved significantly to €378.9 million (H1 2022: €197.8 million). This rise in earnings came from the revenue growth driven by higher volume and prices as well as efficiency gains in production. The improved profitability in the ITS segment was also reflected in the adjusted EBIT margin of 9.2 percent (H1 2022: 5.7 percent).

Adjusted EBIT for the SCS segment fell year on year to € 14.8 million (H1 2022: € 149.8 million) and returned to profit after a negative result in the full year 2022. The execution of lower-margin projects and delays due to ongoing component shortages contributed to the decline in revenue and earnings at SCS. The adjusted EBIT margin for the first half stood at 1.0 percent (H1 2022: 7.1 percent).

The agility and performance measures initiated last year are paying off. The positive development in the ITS segment is impressive proof that the determined focus of the entire KION team on the right levers has made the company much more resilient and agile going forward. We are therefore raising our guidance for 2023 for both the Group and the ITS segment.

Rob Smith, Chief Executive Officer of KION GROUP AG

Net income for the period amounted to €146.3 million (H1 2022: €159.8 million). This reflects a significantly lower financial result and higher tax expenses. Free cash flow was €228.8 million (H1 2022: negative free cash flow of €591.5 million), resulting from the increase in EBIT while net working capital remained at a similar level to the end of 2022. As a result of the improved liquidity situation, it was possible to reduce financial liabilities by €178.9 million. Net debt decreased by €101.0 million to €1.570 billion compared to end of 2022.

You can find our business results for H1 2023 at a glance in our

More detailed information on business performance you can find in our