„We are very satisfied with the first quarter“, says Krones CEO Christoph Klenk in an interview with Börsen-Zeitung. CFO Uta Anders highlights not only the 13.1% increase in revenue – excluding M&A effects, growth stood at just under 9% – but also the improvement in Ebitda margin to 10.6%. „The comparison with 10.1% in the first quarter of the previous year looks even better when considering that the acquisition of Netstal, which has been consolidated since the end of March 2024, diluted the margin by 0.2 percentage points“, she says.

The packaging and bottling machine manufacturer does not expect any immediate impact from US tariff policy on its profit and loss statement. „We are sticking to our targets for revenue and earnings“, emphasises Klenk. The company is aiming for revenue growth between 7% and 9% and an Ebitda margin between 10.2% and 10.8%. For complete beverage filling systems, customers are responsible for customs duties, and for spare parts, tariffs are passed on through pricing, Klenk explains.

If the proposed US tariffs are implemented, Krones would be able to handle them in the medium term, Klenk states. Around one-fifth of the group’s revenue is generated in North America, half of which is already localised. This includes process technology, intralogistics, and lifecycle services. For 60% of the remaining 10% of revenue, Krones faces no significant US competition.

Krones has not yet decided to shift more production to the US. However, the company is prepared for such a scenario: „We’ve secured space so that we can expand if needed.", says Klenk. Additionally, Krones ordered machine tools last year to further localise its lifecycle business and labelling machine production in the US.

The greatest uncertainty arising from tariffs lies in incoming orders, and Klenk notes that "some of our customers are unsettled.“ A certain restraint is noticeable in North America. Nonetheless, the CEO is confident that the book-to-bill ratio will remain at 1.0 for the full year. Current lead time still averages 50 weeks, he added.

In Q1, Krones reported a book-to-bill ratio of 1.02. Compared to the same period last year, order intake declined by 3% to 1.4 billion euros. As per Klenk, sales successes in Africa, the Middle East, and South America helped offset the dampening effect from the US. He adds that order intake will likely be somewhat weaker in Q2. „But I don’t view this critically, as we have a very strong pipeline.“

With a current order backlog of 4.3 billion euros, production capacity is secured through the beginning of Q2 2026, details Anders. While some turnkey projects are being postponed, Klenk notes that the mid-sized filling line business remains strong.

Klenk believes a slowing economy with declining consumer demand would have only a limited impact on the machinery manufacturer: „We learned during the Covid crisis that our customers continue to invest – either to lower production costs or to offer alternative products.“

Nonetheless, Krones is taking a cautious approach. „We’re preparing as much as possible for more challenging times“, says Klenk. Performance programs are being reviewed, and there are always opportunities for improvement. While there is no company-wide hiring freeze, certain regions or business areas are not currently expanding staff.

Price increases have become a continuous process since the last major round in April 2022, with variations depending on region and product, says Klenk. On average, prices in the portfolio rose in line with or slightly below inflation, as Krones continues to improve its productivity.

CFO Anders points out that free cash flow in Q1 was very strong at 165 million euros. Return on capital employed reached 20.5%, exceeding the 2025 target range of 18% to 20%, though it is expected to land within that range for the full year.

Anders did not want to place too much emphasis on the increase in the personnel cost ratio from 29.7% in 2023 to 30.5% and then 31.6% in the first quarter. For the full year, it is expected to drop to around 30%. Krones built up vacation provisions because Easter falls into Q2.