Kendrion: Q3 Revenue Stable as Industry Lifts Normalised EBITDA by 12%
On 10 November 2026, Kendrion published third-quarter revenue of €61.2 million, up 1%. Behind this near-stability, the Group's two businesses diverged: Industry grew 7%, while Mobility fell 28%.
This shift in mix supported profitability. Normalised EBITDA rose 12% to €10.5 million, and its margin gained 1.7 points to 17.2%. Net income from continuing operations increased 20% to €4.2 million, and net debt came down to €44.2 million.
The Growing Weight of Industry Lifts the Normalised EBITDA Margin
The mechanism is first and foremost a mix effect. The value-added margin rose 0.8 points to 58.0%, which the Group mainly attributes to the higher share of industrial revenue. Personnel expenses fell by €0.3 million over the same period.
This decrease reflects savings from the cost-reduction measures launched last year and a lower headcount, at 1,259 full-time equivalents compared with 1,313 a year earlier, which more than offset wage inflation. Other operating expenses increased by only €0.4 million net.
The effect is also visible further down the income statement: normalised EBITA rose 21% to €7.5 million, and its margin gained 2.1 points to 12.3%. On a reported basis, the EBITDA margin stood at 16.8%, up 1.3 points, and total net income reached €6.0 million, compared with €3.9 million.
Industrial Drivers Support Growth, While Mobility Declines
Industrial drivers were the main growth engine of the quarter, with sales up 12% to €26.3 million, supported by European demand in robotics and automation and by the conversion of projects into revenue. Industrial actuators and control systems grew more modestly, by 3%, to €27.4 million.
In this second division, weaker orders from a limited number of customers partly offset order intake dynamics comparable to those of the brakes business. Mobility fell to €7.5 million from €10.4 million, due to a high comparison base and lower volumes requested by a major customer platform.
According to the Group, the gradual exit from this business is proceeding in line with plan, with an average expected decline of around €5 million per year over the coming years.
Over nine months, revenue rose 3% to €190.0 million, despite a negative currency effect of 1%, with brake sales up 10%.
Lower Debt, but Weaker Cash Generation Over Nine Months
Net debt declined to €44.2 million, compared with €48.1 million at the end of June and €88.4 million a year earlier, bringing the leverage ratio to 1.0, compared with 2.1 at the end of September 2025. Free cash flow reached €5.7 million in the third quarter, but over nine months it fell to €6.3 million, compared with €10.9 million.
The Group attributes this decline to the timing of corporate income tax payments in the first quarter and to higher inventories, which rose to €51.3 million and partly support a larger industrial order book.
Kendrion expects to finalise the main terms of a €70 million revolving credit facility in the coming weeks, intended to refinance the existing facility, which matures in April 2027.
Over nine months, the normalised EBITDA margin reached 17.4%, up 2 points. Chief Executive Officer Joep van Beurden said the quarterly level is “close to the upper end of our initial target of 15% to 18% for 2027, set in 2024, and already within the 17% to 20% range for 2027-2030 announced at our recent investor day”.
These targets, presented in September, also foresee annual industrial growth of 5% to 8% and a cash conversion of 100%. The next challenge will be to convert the project portfolio into revenue, as management has announced, while absorbing the scheduled decline of Mobility.
