BofA Expects Surging Warehouse Automation, 'Slow' Forklifts for Kion's Q2; Buy Rating Kept

BofA Global Research expects sustained growth from Kion Group's (KGX.F) warehouse automation unit in the second quarter, while forecasting a performance decline in the company's industrial truck and services unit. "We expect continued slow activity in KION's ITS segment in Q2, as European industrial activity remains weak, impacted by the Middle East conflict. We forecast ITS orders to contract c.8% YoY (consensus at -c.4%) as preorders in Q1 weigh on demand in Q2. Additionally, input cost increases will likely weigh on margin but should be offset by higher volume delivery. From Q3 onwards, we expect pricing to offset cost inflation and support ITS adj EBIT margin (BofAE at 9.7%, +20bps vs cons in Q3)," analysts said Tuesday. Conversely, the research firm noted that the group's warehouse automation segment is expected to benefit from "supportive" end-market momentum with multi-sector project demand. Additionally, a robust backlog of orders for the company's intelligent automation solutions division is expected to bolster revenue expansion and faster profit growth. Ahead of Kion's interim report due on July 30, BofA trimmed its full-year 2026 adjusted EBITDA forecast by under.