Koenig & Bauer AG reported a significant improvement in operating earnings for the second quarter of 2026, according to the company. A sharp increase in order intake, the operational turnaround of both segments during the quarter, and an improvement in cash generation reflect the resilience and earnings power of the technology group amid challenging market conditions.
“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,” said chief executive officer Stephen Kimmich. “With targeted innovations, we are strengthening our position in our core business. This momentum gives us the scope to continue expanding our competitiveness. The optimization of our structural costs remains a key lever for increasing our resilience and strengthening the foundation for profitable growth.”
Business performance H1/Q2-26
Group revenue rose slightly by 1.4% to Euro 558.2m in the first half-year (previous year: Euro 550.4m). A strong book-to-bill ratio of 1.27 (previous year: 1.10) reflects high operational growth momentum. Group order intake increased by 16.9% to Euro 709.3m (previous year: Euro 606.9m), driven by a further acceleration in demand in the second quarter to Euro 411.7m. The order backlog stands at a record high in the company’s recent history at Euro 1,121.7m (previous year: Euro 1,096.3m), providing a foundation for further business performance.
Operating EBITDA improved significantly in the half-year comparison by 20.5% to Euro 14.1m (previous year: Euro 11.7m), driven primarily by earnings momentum in the second quarter, when the group generated operating EBITDA of Euro 17.0m. EBITDA of Euro 7.4m (previous year: Euro 7.5m) includes scheduled non-operating extraordinary items of Euro 6.7m for the closure of operations at Albert-Frankenthal.
Cash generation remains a central aspect of group management: in the second quarter, the company achieved a milestone with positive free cash flow of Euro 16.8m, improving the half-year figure by Euro 62.7m year-on-year to -Euro 21.0m. Active management kept net working capital (NWC) below the target of a maximum of 25% of group revenue, at a ratio of 21.4%.
Joint operational turnaround in the segments
The operational development of the two group segments during 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 order intake of Euro 398.5m (previous year: Euro 350.4m; 13.7%), of which Euro 204.2m was attributable to the second quarter. Revenue stood slightly below the prior year at Euro 299.3m (previous year: Euro 308.9m; -3.1%) due to the lower order level from 2025, but showed a recovery in the second quarter at Euro 165.9m. Operating EBITDA reflected this revenue recovery: following a subdued start to the year of -Euro 8.4m in the first quarter, operating EBITDA of Euro 6.8m was again achieved in the second quarter (H1: -Euro 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 turnaround was achieved in the first half, with operating EBITDA of Euro 11.8m (previous year: -Euro 4.0m), driven by sequential earnings momentum in the second quarter (Euro 7.7m following Euro 4.1m in the first quarter). Revenue rose by 5.2% to Euro 269.9m (previous year: Euro 256.6m), underpinned by performance progress on large-scale projects, particularly in North America. Order intake recorded an increase of 22.1% to Euro 329.0m (previous year: Euro 269.4m), mainly driven by project business at Banknote Solutions in Africa and Latin America, which led to a significant increase in the second quarter to Euro 214.3m.
“Anyone who predicted the end of cash is being caught up with by reality,” said 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 that our highly specialized technologies are more relevant today than ever.”
Outlook for 2026: stable business performance and confirmation of guidance
For the 2026 financial year, Koenig & Bauer expects operational stability to continue. Provided that underlying conditions remain stable, the company confirmed its forecast of group revenue at the prior-year level (approximately Euro 1.3bn) and operating EBITDA of approximately Euro 80m. The assumptions in the forecast report are subject to there being 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 optimize net working capital are taking effect,” said Alexander Blum. “The positive free cash flow of almost Euro 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.”