Krones Targets €7 Billion Revenue by 2028 as Beverage Demand Fuels Growth

Key Points

• Krones set a medium-term revenue target of about €7 billion by 2028, alongside an EBITDA margin goal of 11% to 13%. The company said the target is supported by steady beverage demand, market leadership, and new production capacity.
• The company reported around €5.6 billion in 2025 sales, with an EBITDA margin of 10.6% and an order backlog above €4 billion. Krones also reiterated current guidance for 3% to 5% sales growth and an EBITDA margin of 10.7% to 11.1%.
• Sustainability and automation are central growth drivers, with Krones expanding PET lifecycle capabilities, launching its Ingeniq line, and investing in production and logistics capacity in Germany, the U.S., China, and India. Management said tariff pressure has affected U.S. orders, but demand is recovering.

Krones ETR: KRN outlined its growth strategy, regional production plans and medium-term targets during a market presentation led by Olaf Scholz, the company’s Head of Group Treasury and Investor Relations.

Scholz described Krones as the global leader in filling and packaging systems for beverages across PET plastic, cans and glass. While beer is a well-known part of the company’s business, he said water is a larger driver, accounting for about 40% of sales. Carbonated soft drinks are also a key focus. He added that Krones machines are installed “all over the world,” with only a few small countries lacking the scale for full filling and packaging lines.

The company generated around EUR 5.6 billion in sales in 2025, according to Scholz, with an EBITDA margin of 10.6% and EBITDA slightly above EUR 600 million. He said book-to-bill was slightly below one, but emphasized that the company’s order backlog remains above EUR 4 billion.

Growth Drivers Center on Beverages and Sustainability

Scholz said Krones’ main business remains filling and packaging, which represents roughly 80% of sales. Process technology accounts for about 10%, while intralogistics is another smaller segment.

He characterized the company’s end markets as non-cyclical, supported by population growth, a rising middle class, urbanization and sustainability. Global beverage consumption is growing steadily at around 3% annually, he said, with bottled water growing faster at about 4.8%. Demand is particularly tied to hygienic bottled water in regions such as Africa, Asia-Pacific and South America, rather than markets like Germany where tap water is widely available.

Krones has operations across all major regions. Scholz said the company is the market leader in China for hygienic bottled high-speed lines, but is not overly dependent on China, with the broader Asia-Pacific region representing a larger share of sales. He also highlighted Middle East and Africa, including countries such as Nigeria and Uganda, where Krones serves both global key accounts and strong local customers. The company has more than 800 employees in Middle East and Africa, mainly in sales and service, and about 1,300 employees in Asia-Pacific.

In the Americas, Scholz said South America is mainly driven by Brazil and Mexico, with Mexico serving as an important production and export region for customers delivering into the U.S. He said U.S. sales as a percentage of total revenue have declined, but are more stable when compared against group top-line growth.

PET Loop and New Line Generation

Sustainability remains a major strategic driver, Scholz said. Following Krones’ acquisition of Swiss company Netstal, closed in March 2024, the company can now offer equipment covering more of the PET bottle lifecycle, including injection molding for preforms, blow-molding technology for bottles, filling and packaging, and recycling technology. Collection activities are not part of Krones’ portfolio, he noted.

Scholz said customers’ net-zero strategies are one motivation for buying Krones lines, but he emphasized cost savings as equally important. Krones equipment uses less energy, plastic, water and labor, he said, helping customers reduce operating costs as well as environmental impact.

The company also highlighted Ingeniq, a new line generation introduced at the drinktec trade fair in Munich. Scholz said the system is not merely conceptual, noting that a sold line has been running in the United Kingdom since May last year at 104,000 bottles per hour in PET non-sparkling beverages.

Ingeniq combines high-end equipment, digital solutions and after-sales service under what Krones calls its Lifecycle Alliance. Scholz said the service model can include output guarantees, although Krones does not operate a pay-per-bottle model. He said the focus is lowering customers’ total cost of ownership, which he estimated at EUR 500 million to EUR 750 million over 10 years for a filling and packaging line, with potential savings of about 10% through improved performance.

Production Footprint and Tariffs

Scholz said about two-thirds of Krones’ production is in Germany, with the remainder outside Germany in locations including Hungary, China, the U.S. and Italy. He defended the centralized production model, saying it allows the company to use scale and invest in automation.

In response to a question about automation, Scholz said the initiative is focused on “growing without growing,” rather than reducing headcount. The company is investing in a new logistics center in Germany to automate production logistics and improve project delivery and after-sales speed.

In the U.S., Krones is investing EUR 50 million in a new logistics center with small production capabilities, while maintaining larger intralogistics production in Arden, North Carolina. Scholz said the company decided against building a major U.S. line-production facility because it sees no direct local competition in filling and packaging lines, while labor costs and tariff-related parts costs would reduce the advantage. He said tariffs of 15% to 18% are paid by customers, not Krones, and that U.S. orders had slowed after tariff announcements but are now coming back.

Krones is also expanding production in China and India. Scholz said Chinese production will support “China for China” products developed with Chinese colleagues, while India is seen as an attractive market due to its population and regulatory changes. He said these investments are expected to contribute to sales beginning in 2027.

Segment Trends and Outlook

In process technology, Scholz said the brewery business is currently weaker, with limited demand for large brewery projects. Krones is focusing instead on pumps, valves, homogenizers, heat exchangers and decanters, which he described as higher-margin opportunities. He also noted a new project for an ice cream plant.

In intralogistics, Krones is concentrating on automated picking solutions rather than large high-bay warehouse projects. About 60% of intralogistics sales are tied to the beverage industry, with the rest in industries such as groceries. Scholz said the market remains large because about 60% of production is not automated, but he acknowledged Krones is small compared with larger players in the field.

For the current outlook, Scholz reiterated guidance for 3% to 5% sales growth, an EBITDA margin of 10.7% to 11.1%, and return on capital employed of 19% to 20%, assuming no major supply-chain issues. He said first-quarter sales growth of 1.4%, excluding currency translation effects, should improve in the second half, with intralogistics typically stronger toward year-end. The second quarter may be weaker because of holidays in Germany and Bavaria, he added.

Krones’ medium-term target is revenue of around EUR 7 billion in 2028 and an EBITDA margin range of 11% to 13%. Scholz called the target ambitious but said beverage consumption growth, Krones’ market position and new production capacity support the goal.

Scholz also said Krones has about EUR 400 million to EUR 500 million in net cash, no bank loans and an equity ratio of roughly 42% to 43%. The company’s dividend policy is to distribute 25% to 30% of after-tax profit.

About Krones ETR: KRN

Krones AG, together with its subsidiaries, engages in the planning, development, and manufacture of machines and lines for the production, filling, and packaging technology in Germany and internationally. It operates in three segments, Filling and Packaging Technology, Process Technology, and Intralogistics. The Filling and Packaging Technology segment offers machines and lines for stretch blow molders, bottle washing, filling, inspection, labelling, conveying, product packing, palletizing, treatment, technology products, as well as for producing PET containers and converting used plastic bottles into food-grade recycled material.

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