Koenig & Bauer with strong second quarter: Significant increase in order intake, clear intra-year earnings improvement and positive free cash flow

Koenig & Bauer AG recorded a significant improvement in operating earnings in the second quarter of 2026. A massive increase in order intake, the successful operational turnaround of both segments over the course of the quarter and a significant improvement in cash generation demonstrate the high resilience and earnings power of the technology group in a challenging market environment.

"The significant growth in order intake of almost 17% in the first half of the year confirms the traction of our go-to-market strategy," explains Chief Executive Officer Dr Stephen Kimmich. "With targeted innovations, we are noticeably strengthening our position in our core business. This momentum gives us the scope to continue systematically expanding our competitiveness. The optimisation of our structural costs remains a key lever for increasing our resilience and sustainably strengthening the foundation for profitable growth."

Group revenue rose slightly by +1.4% to €558.2m in the first half-year (previous year: €550.4m). A strong book-to-bill ratio of 1.27 (previous year: 1.10) demonstrates high operational growth momentum. Group order intake increased significantly by +16.9% to €709.3m (previous year: €606.9m), driven by a further acceleration in demand in the second quarter to €411.7m. The order backlog remains at a new record high in recent corporate history at €1,121.7m (previous year: €1,096.3m), providing a reliable foundation for further business performance.

Operating EBITDA improved significantly in the half-year comparison by +20.5% to €14.1m (previous year: €11.7m), driven primarily by strong earnings momentum in the second quarter, in which the Group generated operating EBITDA of €17.0m. EBITDA of €7.4m (previous year: €7.5m) includes scheduled non-operating extraordinary items of €6.7m for the closure of operations at Albert-Frankenthal GmbH.

A central aspect of Group management remains cash generation: in the second quarter, an important milestone was achieved with a positive free cash flow of +€16.8m, improving the half-year figure significantly year-on-year by +€62.7m to -€21.0m. Active management ensured that Net Working Capital (NWC) was kept well below the target figure of a maximum of 25% of Group revenue, with a ratio of 21.4%.

The operational development of the two Group segments in the half-year was supported by joint positive momentum in the second quarter: in the Paper & Packaging Sheetfed Systems (P&P) segment, Koenig & Bauer recorded strong order intake of €398.5m (previous year: €350.4m; +13.7%), of which €204.2m was attributable to the second quarter. Revenue stood slightly below the prior year at €299.3m (previous year: €308.9m; -3.1%) due to the lower order level from 2025, but already showed a noticeable recovery in the second quarter at €165.9m. Operating EBITDA reflected this revenue recovery: following a subdued start to the year of -€8.4m in the first quarter,  strong operating EBITDA of +€6.8m was again achieved in the second quarter (H1: -€1.6m). To safeguard earnings power in the P&P segment, a proportionate price adjustment of +3% was implemented on 1 July 2026, compensating for effects exceeding targeted cost reduction measures against geopolitical cost pressure.

In the Special & New Technologies (S&T) segment, a successful H1 turnaround was achieved with operating EBITDA of €11.8m (previous year: -€4.0m), driven by strong sequential earnings momentum in the second quarter (€7.7m following €4.1m in the first quarter). Revenue rose by +5.2% to €269.9m (previous year: €256.6m), underpinned by performance progress on large-scale projects, particularly in North America. Order intake recorded a substantial increase of +22.1% to €329.0m (previous year: €269.4m), mainly driven by strong project business at Banknote Solutions in Africa and Latin America, which led to a significant increase in the second quarter to €214.3m.

"Anyone who predicted the end of cash is being caught up with by reality," comments Dr Kimmich, adding: "Cash is and remains an indispensable store of value and our most reliable safety net in times of crisis or cyberattacks. The fact that even pioneers such as Sweden are now obliging retailers to accept cash again speaks volumes. For us, this is clear proof: our highly specialised technologies are more relevant today than ever."

For the 2026 financial year, Koenig & Bauer expects a continuation of operational stability. Provided that underlying conditions remain stable, the company confirms its forecast of Group revenue at the prior-year level (approximately €1.3bn) and operating EBITDA of approximately €80m. The assumptions made in the forecast report are subject to the proviso that there is no prolonged military confrontation in the Middle East, no long-lasting disruption of international trade routes, no permanent energy price crisis, and no significant deterioration in the global investment climate.

"The intra-year cash flow performance shows that our measures to optimise net working capital are taking effect," emphasises Dr Alexander Blum, adding: "The positive free cash flow of almost €17m achieved in the second quarter is an important milestone. Together with our historically strong order book, we have a solid foundation to cushion external market headwinds.”

Figures at a glance

The full interim report for the first half-year 2026 is available as a PDF download on the Koenig & Bauer AG website.