Kalmar's interim report January–September 2025: Improved profitability in the quarter
Record-high comparable operating profit margin of 13.8 percent, supported by Services and improved efficiency
Global market uncertainty persisted, volatility in the tariff and trade policy landscape dampened decision-making
Solid performance in Services with both increased orders received and profitability
Equipment orders received declined from the comparison period by 20 percent, however, showing solid growth year-to-date
Guidance for 2025 unchanged.
July–September 2025 in brief:
Orders received decreased by 10 percent and totalled EUR 375 (416) million
Order book amounted to EUR 961 million (31 Dec 2024: EUR 955 million)
Sales increased by 3 percent and totalled EUR 436 (425) million
Eco portfolio1 sales represented 46 (40) percent of consolidated sales and increased by 17 percent, totalling EUR 201 (172) million
Operating profit was EUR 61 (54) million, representing 13.9 (12.7) percent of sales. The operating profit includes items affecting comparability worth EUR 1 (-4) million
Comparable operating profit amounted to EUR 60 (57) million representing 13.8 (13.5) percent of sales, an increase of 4 percent
Cash flow from operations before finance items and taxes totalled EUR 26 (72) million
Profit for the period amounted to EUR 45 (36) million
Basic earnings per share was EUR 0.70 (0.56)
Interest-bearing net debt to EBITDA2 was 0.3x (0.4x).
January–September 2025 in brief:
Orders received increased by 9 percent and totalled EUR 1,306 (1,193) million
Order book amounted to EUR 961 million (31 Dec 2024: EUR 955 million)
Sales decreased by 2 percent and totalled EUR 1,254 (1,280) million
Eco portfolio sales represented 44 (40) percent of consolidated sales and increased by 8 percent, totalling EUR 555 (516) million
Operating profit was EUR 160 (136) million, representing 12.8 (10.6) percent of sales. The operating profit includes items affecting comparability worth EUR -3 (-28) million
Comparable operating profit amounted to EUR 163 (164) million representing 13.0 (12.8) percent of sales, a decrease of 0.5 percent
Cash flow from operations before finance items and taxes totalled EUR 133 (185) million
Profit for the period amounted to EUR 118 (101) million
Basic earnings per share was EUR 1.84 (1.57).3
Guidance for 2025
Kalmar expects its comparable operating profit margin to be above 12 percent in 2025.
President & CEO Sami Niiranen:
The third quarter was marked by a record-high comparable operating profit margin of 13.8 percent, driven by Services and improved efficiency. Despite persistent global market uncertainty, indecisiveness and delayed decision making among some customers, we ensured a solid performance.
The market activity in the quarter was in line with our previous expectations of a slightly softer environment in the second half, especially in the Americas. Orders received decreased to EUR 375 (416) million, reflecting the current environment and differences between the regions and end customer segments. While Services order intake was strong across the service portfolio, the Equipment order intake was impacted by both delayed decision making and timing of larger orders.
While the underlying demand remained mostly stable, it continued to be subdued in the Americas, consistent with the previous quarter. Demand in Europe has been strong, however, the decline in Q3 was explained by timing of larger orders. AMEA4 demand has remained stable. Trade tensions and tariffs continue to create uncertainty, leading to varied regional development as also the data from our connected equipment of our customers' fleets show. However, based on external indicators, the market seems to be more resilient than previously anticipated. In addition, our solid order book provides a strong foundation moving forward.
Our financial performance remained solid. Sales continued to grow to EUR 436 (425) million, resulting in a comparable operating profit of EUR 60.0 million. Cash flow from operations before finance items and taxes amounted to EUR 25.6 million, with our last twelve months cash conversion being at 75 percent. Net debt has decreased by 14 percent during the last twelve months to EUR 84 million and our leverage ratio is at a healthy level of 0.3x. Our Driving Excellence initiative continues to deliver, securing approximately EUR 24 million in annualised gross efficiency improvements in 2025 so far, largely from successful sourcing activities.
During the third quarter, we continued to execute on our strategy for sustainable growth. We secured important orders, reflecting customer trust and satisfaction in our innovative and sustainable portfolio. Key milestones on our sustainability and innovation roadmap included the launch of the 5-year Move2Green program funded by Business Finland, and the commencement of construction for our new test center at our innovation centre in Ljungby, Sweden, which will support the acceleration of our electric and autonomous product development. Our commitment to sustainability was further recognised with an EcoVadis gold medal, placing us in the top 5 percent of all rated companies.
We are also pleased to note the progress in our eco portfolio, with the fully electric share of total equipment orders for the last twelve months (LTM) increasing slightly to 11 percent, reflecting growing customer adoption of our sustainable solutions.
As we look ahead, global market uncertainty, particularly the evolving trade policy landscape, remains a key focus. Our teams worldwide are dedicated to managing this dynamic environment while diligently executing our strategy. Our strategic priorities are clear: we will continue to grow our services business, enhance operational and commercial excellence to drive profitability and invest in sustainable innovations to secure future growth and maintain our competitive edge.
Vision and strategy
Kalmar is a market leader in heavy material handling equipment with deep-rooted foundations in customer proximity, attractive market, experienced and talented people and strong financial profile.
Kalmar's sales and service network covers over 120 countries, supporting its globally dispersed customer base and extensive installed base of 68,000 machines globally. The company operates mainly through direct sales and a strong global network of dealers. With an assembly-based manufacturing model with four factories and two innovation centers, Kalmar prioritizes building strong and enduring relationships with its material suppliers across the globe. Kalmar's workforce comprises around 5,200 employees of which 1,400 are service engineers. The company believes that attracting and retaining top talent is essential to being the most valued business partner for its customers and the employer of choice for current and future employees. Kalmar is dedicated to responsible business practices and expects its suppliers and business partners to uphold the same high legal and ethical standards.
The industry is facing several megatrends, which are driving renewal across the whole scene. This generates opportunities for Kalmar to provide solutions and solve the challenges customers face. Some of the key opportunities that Kalmar is prepared to address are:
• Safety• Productivity• Decarbonisation and electrification• Changing logistics landscape• Labour shortage• Intelligent operations.To address these opportunities and to create added customer value Kalmar is focusing on three strategic areas:
• Investing in sustainable innovations in the area of decarbonised and electric equipment, digital solutions and automation
• Growing services and expanding our aftermarket footprint with a focus on harvesting on our vast installed base, improving capture rate, increasing the share of recurring business through service contracts and creating customer lifecycle value through an intelligent service offering
• Driving excellence by improving profitability and cash flow generation via sourcing optimisation and process improvement to fund further investments into R&D and organic growth, and distributing profits to shareholders.
Performance targets
Kalmar's Board of Directors has set the following performance targets for 2028:
Financial targets
Sales growth of 5 percent p.a. over the cycle;
Comparable operating profit margin of 15 percent;
ROCE above 25 percent;
Capital structure and sustainability framework
Leverage (Net debt to EBITDA) under 2x;
Dividend payout ratio of 30-50 percent per annum;
Aligned with SBTi targets with 1.5 °C commitment.5
Corporate information and basis for preparation
Kalmar Corporation was formed as a result of the partial demerger from Cargotec Corporation ("demerger"), which was completed on 30 June 2024. The trading in Kalmar Corporation shares on the main market of Nasdaq Helsinki commenced on 1 July 2024.
Financial information prior to the demerger is presented on a carve-out basis. The carve-out financial statements do not necessarily reflect what the financials would have been had Kalmar operated as an independent consolidated group and had it therefore presented stand-alone consolidated financial information. Further, the carve-out financial information may not be indicative of Kalmar's future performance. The carve-out reporting principles are described in Note 2. Basis of preparation.
Kalmar's key figures
MEUR
Q3/25
Q3/24
Change
Q1–Q3/25
Q1–Q3/24
Change
2024
Orders received
375
416
-10%
1,306
1,193
9%
1,679
Order book, end of period
961
905
6%
961
905
6%
955
Sales
436
425
3%
1,254
1,280
-2%
1,720
Eco portfolio sales
201
172
17%
555
516
8%
698
Eco portfolio sales, % of sales
46%
40%
44%
40%
41%
Eco portfolio orders received
163
n/a
575
n/a
n/a
Eco portfolio orders received, % of total orders received
43%
n/a
44%
n/a
n/a
Operating profit
60.7
53.9
13%
160.3
135.6
18%
174.4
Operating profit, %
13.9%
12.7%
12.8%
10.6%
10.1%
Comparable operating profit
60.0
57.5
4%
162.8
163.7
-1%
216.8
Comparable operating profit, %
13.8%
13.5%
13.0%
12.8%
12.6%
Profit before taxes
58.5
49.0
19%
