Bottling equipment maker Krones lowers FY revenue growth outlook to 1-2%

Overview

• Germany packaging machinery maker's preliminary nine-month revenue rose 0.8% yr/yr on currency-adjusted basis

• Company cut 2026 revenue growth outlook to 1-2% from 3-5%

• Lower forecast attributed to geopolitical and macroeconomic challenges

Outlook

• Krones lowers 2026 revenue growth forecast to 1%-2% from 3%-5% previously

• Krones sees 2028 revenue at €6.0 bln-€6.2 bln, down from prior €7 bln outlook

Result Drivers

• MARKET CONDITIONS - Co cited unfavorable market developments due to challenging geopolitical conditions and cost increases for customers

• SLOW REVENUE GROWTH - Co said revenue growth was sluggish, rising 0.8% yr/yr on currency-adjusted basis

• US TARIFF REFUNDS - Co said refunded US tariffs negatively impacted revenue by about EUR 20 mln

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Krones AG is €145.00, about 26.1% above its October 21 closing price of €115.00

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)