Financial position of the Group

Analysis of liquidity

Cash flow from operating activities in the first quarter of 2026 was €117.2 million, which was only a slight decrease on the same period of the prior year (Q1 2025: €125.0 million). This was despite the fact that most of the cash outflows in connection with the implementation of the efficiency program occurred in the current year and amounted to €47.3 million in the reporting quarter. Liquidity was boosted by the improvement in operating profit compared with the prior-year period. Income taxes paid in the reporting quarter also declined significantly due to tax refunds. However, cash flow from operating activities was negatively impacted by the accumulation of net working capital over the period.

There was a decrease in net cash used for investing activities to minus €70.2 million in the first quarter of 2026 (Q1 2025: minus €95.3 million). Within this total, cash payments for capital expenditure on property, plant and equipment and intangible assets declined from the elevated level seen in prior years to minus €62.9 million (Q1 2025: minus €85.4 million). Of this figure, €25.7 million was attributable to capitalized development costs (Q1 2025: €34.9 million) and €37.2 million to other non-current assets (Q1 2025: €50.5 million).

Free cash flow – the sum of cash flow from operating activities and investing activities – rose to €47.0 million in the first three months of 2026 (Q1 2025: €29.7 million).

Net cash provided by financing activities amounted to €441.4 million in the reporting period (Q1 2025: net cash used of minus €63.3 million). This net cash stemmed, in particular, from the additional corporate bond issued in 2026 under the established EMTN program of KION GROUP AG, which has a total volume of €500.0 million. The net cash generated of €497.4 million (after deduction of the issue discount) is to be used for the repayment of existing liabilities from the short-term rental and lease business.

Cash and cash equivalents temporarily increased significantly to €967.2 million as at March 31, 2026 (December 31, 2025: €474.9 million).

Taking into account the credit facility of €1,385.7 million that was freely available and, as at the reporting date, entirely unutilized (December 31, 2025: €1,385.7 million), the unrestricted cash and cash equivalents available to the Group as at March 31, 2026 amounted to €2,352.2 million (December 31, 2025: €1,859.9 million).

Condensed consolidated statement of cash flows

in € million

Q1
2026

Q1
2025

Change

EBIT

176.9

−21.8

> 100.0%

+ Amortization/depreciation¹ on non-current assets (without lease and rental assets)

143.1

133.4

7.3%

+ Net changes from lease business (including depreciation¹ and release of deferred income)

19.3

−15.1

> 100.0%

+ Net changes from short-term rental business (including depreciation¹)

−20.3

−13.0

−56.2%

+ Changes in net working capital

−87.8

−56.5

−55.3%

+ Taxes paid

−0.7

−31.9

97.8%

+ Changes in other provisions

−88.5

198.5

< −100.0%

+ Other

−24.9

−68.5

63.6%

= Cash flow from operating activities

117.2

125.0

−6.2%

+ Cash flow from investing activities

−70.2

−95.3

26.4%

thereof cash payments for capitalized development costs

−25.7

−34.9

26.4%

thereof cash payments for purchase of other non-current assets

−37.2

−50.5

26.3%

thereof from acquisitions

−5.8

−5.9

1.9%

thereof from other investing activities

−1.5

−4.0

62.0%

= Free cash flow

47.0

29.7

58.5%

+ Cash flow from financing activities

441.4

−63.3

> 100.0%

+ Effect of exchange rate changes on cash

3.9

−3.2

> 100.0%

= Change in cash and cash equivalents

492.3

−36.9

> 100.0%

1	Including impairment and reversals of impairment

Analysis of capital structure

Net financial debt (non-current and current financial liabilities less cash and cash equivalents) amounted to €587.0 million as at the reporting date, which was virtually unchanged compared with the figure as at December 31, 2025 of €584.0 million. This equates to 0.3 times adjusted EBITDA on an annualized basis (December 31, 2025: 0.3 times). To reconcile the net financial debt with the industrial net operating debt (INOD) of €2,140.1 million as at March 31, 2026 (December 31, 2025: €2,158.3 million), the liabilities from the short-term rental business of €785.9 million (December 31, 2025: €810.2 million) and the liabilities from procurement leases of €767.2 million (December 31, 2025: €764.1 million) are added to net financial debt. Leverage on industrial net operating debt (INOD) stood at 1.1 times adjusted EBITDA on an annualized basis (December 31, 2025: 1.2 times).

Industrial net debt

in € million

Mar. 31, 2026

Dec. 31, 2025

Change

Promissory notes

398.9

401.9

−0.7%

Bonds

992.0

496.8

99.7%

Liabilities to banks

120.1

118.0

1.8%

Other financial debt

43.2

42.2

2.2%

Financial debt

1,554.2

1,058.9

46.8%

Less cash and cash equivalents

−967.2

−474.9

< −100.0%

Net financial debt

587.0

584.0

0.5%

Liabilities from short-term rental business

785.9

810.2

−3.0%

Liabilities from procurement leases

767.2

764.1

0.4%

Industrial net operating debt (INOD)

2,140.1

2,158.3

−0.8%

Net defined benefit obligation

525.6

527.5

−0.3%

Industrial net debt (IND)

2,665.8

2,685.8

−0.7%

Adjusted EBITDA¹ for the previous twelve months

1,880.9

1,867.5

0.7%

Leverage on net financial debt

0.3

–

Leverage on INOD

1.1

1.2

–

Leverage on IND

1.4

–

1	Adjusted for PPA items and non-recurring items

The Group’s equity rose to €6,274.4 million as at March 31, 2026 (December 31, 2025: €6,123.0 million). The main factors in the rise in equity were net income for the reporting period of €92.2 million and amounts recognized in other comprehensive income comprising currency translation gains of €55.4 million and actuarial gains and losses arising from the measurement of pensions, which amounted to a net gain of €3.4 million (after deferred taxes). The equity ratio (33.0 percent) was moderately lower at March 31, 2026 than at December 31, 2025 (33.5 percent) owing to the increase in total assets.