November 6, 2024, Austria

• EBITDA sees significant increase of 70.1%, reaching EUR 59.4 million in Q3 2024
• Gross margin rises to 44.7% in Q3 2024 – transformation is showing results
• Revenue surges by 44.9% in Q3 2024 to EUR 427.7 million
• Order backlog rises to EUR 2,056 million with strong Book-to-Bill ratio of 1.21

Linz, November 6, 2024: Kontron AG, a global leader in IoT technology, today announced its results for the third quarter and the first nine months of the 2024 fiscal year. The company reported both revenue growth and a significant increase in earnings.

In the third quarter of 2024, Kontron achieved revenue growth of 44.9% to EUR 427.7 million (Q3 2023: EUR 295.1 million). EBITDA increased by 70.1% to a new record level of EUR 59.4 million (Q3 2023: EUR 34.9 million). The EBITDA margin rose again, reaching 13.9% (Q3 2023: 11.8%). The consolidated net profit after minority interests increased by 28.5% to EUR 24.4 million (Q3 2023: EUR 19.0 million).

The positive earnings development particularly highlights the growth in the Software + Solutions segment within the Group and Kontron’s transformation into a technology leader, as evidenced by the growth in the gross margin. This reached 44.7% in the third quarter of 2024, compared to 42.5% in the second quarter of 2024, and 40.1% in the same quarter last year.

Operating cash flow amounted to EUR 19.6 million in the third quarter (Q3 2023: EUR 26.8 million). However, factoring was reduced once again. The adjusted operating cash flow adjusted accordingly increased to EUR 27.9 million. The order backlog rose to EUR 2,056 million as of September 30, 2024, setting a new record compared to the level of EUR 1,686.2 million as of December 31, 2023. The Book-to-Bill ratio in the third quarter was a very robust 1.21.

Looking at the first nine months of the 2024 fiscal year, the positive development in the third quarter of 2024 resulted in revenue of EUR 1,207.7 million, reflecting growth of 44.7% compared to the previous year’s figure of EUR 834.4 million. EBITDA for the 9-month period in 2024 reached EUR 141.4 million, an increase of 47.5% over the previous year’s value (9M 2023: EUR 95.9 million). Consolidated net profit after minority interests rose to EUR 62.3 million after nine months of the current year (9M 2023: EUR 54.6 million), or EUR 1.01 per share (9M 2023: EUR 0.86 per share). Operating cashflow was EUR 2.8 million and, adjusted for the reduced factoring, even reached EUR 68.8 million compared to EUR 34.1 million in the same period last year.

Hannes Niederhauser, CEO of Kontron AG, said: “The successful first nine months of the year show that we have not overpromised with our 2024 forecast. The integration of Katek is progressing as planned and is nearly complete. The consistent focus on technology, combined with the reduction in unprofitable orders, is leading to significantly higher margins: Now at 44.7% in the third quarter. In light of the successful business growth in the first nine months of 2024 and strong demand, Kontron confirms its earnings target of EUR 190 million EBITDA in 2024 (up by 50% compared to 2023). The high order backlog also ensures the continuation of the growth path into 2025.”

The 9-month report is available on our website.

About Kontron

Kontron AG (www.kontron.com, ISIN AT0000A0E9W5, WKN A0X9EJ, KTN) is a leading IoT technology company. For more than 20 years, Kontron has been supporting companies from a wide range of industries to achieve their business goals with intelligent solutions. From automated industrial operations, smarter and safer transport to advanced communications, connectivity, medical, and energy solutions, the company delivers technologies that add value for its customers. With the acquisition of Katek SE in early 2024, Kontron has significantly strengthened its portfolio with the new GreenTec division, focusing on solar energy and eMobility, and employs around 8,000 employees in over 20 countries worldwide. Kontron is listed on the SDAX® and TecDAX® of the German Stock Exchange.

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Leon-Philipp Kleiss

Kontron AG – Investor Relations

Tel: +43 664 60191 5153

[email protected]

Alexandra Kentros

Kontron AG – Communications

Tel: +49 151 151 9388 149

[email protected]

All rights reserved. Kontron is a trademark or registered trademark of Kontron Europe GmbH. All other brand or product names are trademarks or registered trademarks or copyrights by their respective owners and are recognized. All data is for information purposes only and not guaranteed for legal purposes. Subject to change without notice. Information in this press release has been carefully checked and is believed to be accurate; however, no responsibility is assumed for inaccuracies.