Dutch industrial motion control specialist Kendrion N.V. reported a record second-quarter normalized EBITDA margin of 18.1% as the company exceeded several 2027 financial targets ahead of schedule.
The company’s Q2 2026 normalized EBITDA rose 16% year-over-year to EUR 11.5 million, while revenue increased 4% to EUR 63.6 million from EUR 61.4 million in the same period last year. For the first half of 2026, normalized EBITDA grew 18% to EUR 22.5 million, with revenue up 4% reported and 5% at constant currency to EUR 128.8 million. Normalized EBITDA margin for H1 reached 17.5%, sitting at the upper end of the company’s 15% to 18% target range.
Net profit before amortization from continuing operations rose 37% in Q2 to EUR 5.9 million and 26% in H1 to EUR 11.1 million. Return on invested capital (ROIC) on a rolling 12-month basis surged to 26.3%, nearly doubling from 13.9% in H1 2025. Free cash flow for the first six months totaled EUR 4 million, constrained by seasonal working-capital buildup.
Shareholder returns during H1 amounted to EUR 70.9 million via dividends and share repurchases, contributing to a net debt increase to EUR 48.1 million at the end of June from EUR 30.3 million at year-end 2025. The company’s leverage ratio improved to 1.2x from 2.4x a year earlier.
Segment performance showed mixed trends. Industrial Brakes revenue grew 8% to EUR 51.5 million, while Industrial Actuators & Controls rose 1% to EUR 56.4 million, with Q2 revenue declining 2% due to customer-specific volume reductions. Mobility revenue increased 4% to EUR 20.9 million, with EBITDA up 44% and margins expanding to 24.9% from 17.9% in the prior year, aided by EUR 1.3 million in milestone payments from a cooperation agreement with Knorr-Bremse.
Management raised its 2026 capital expenditure guidance to EUR 9 million–EUR 10 million, down from an earlier EUR 11 million estimate, while forecasting 2027 CapEx of EUR 10 million–EUR 11 million. The company also secured a new EUR 70 million committed credit facility to refinance 2027 maturities on improved terms, with final documentation expected in October. A Capital Markets Day is scheduled for September 17 in Amsterdam to outline 2027–2030 targets.
Kendrion’s stock rose 4.55% in pre-market trading to $19.78, within a 52-week range of $12.42 to $21.60.
