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Introduction & Market Context
Končar Group delivered impressive financial results for the first half of 2025, according to the company’s Q1-Q2 performance presentation released on July 30, 2025. The Croatian electrical equipment manufacturer reported substantial growth across all key metrics, with its share price doubling compared to the same period last year and market capitalization reaching EUR 1.35 billion.
The company’s strong performance comes amid ongoing geopolitical tensions and economic volatility, which Končar acknowledges as significant risks to the global economy with direct implications for its operations. Despite these challenges, the Group has maintained its strategic focus on driving sustained growth, particularly through exports.
Quarterly Performance Highlights
Končar Group reported a 33.0% year-over-year increase in sales revenue for the first half of 2025, with exports growing by 29.6% and accounting for 71.5% of total sales. The company’s net profit surged by 75.1%, while EBITDA increased by 54.1%.
The presentation highlighted several key business developments during the period, including reinforced partnership with HŽ Passenger Transport through contracts worth EUR 117.9 million for various train types and charging stations. Additionally, Končar’s newly developed battery-electric multiple unit successfully completed its inaugural passenger journey from Zagreb Central Station to Bjelovar on May 13, 2025.
As shown in the following key business indicators slide:
The company also secured a new contract for the construction of the small hydropower plant Peruća, valued at EUR 12.6 million, and continued its investment momentum by nearly doubling its CAPEX to EUR 34.1 million.
Detailed Financial Analysis
The detailed financial results reveal significant improvements across all major metrics compared to the same period in 2024:
Operating income increased from EUR 486.3 million in Q1-Q2 2024 to EUR 643.3 million in Q1-Q2 2025, while operating profit rose from EUR 79.4 million to EUR 126.5 million. Net profit saw an even more dramatic improvement, jumping from EUR 73.8 million to EUR 129.2 million.
Profitability margins also showed substantial growth, with EBITDA margins reaching 21.9% in Q1-Q2 2025, up from 18.9% in the same period last year:
The company’s financial position remains strong, with cash and cash equivalents of EUR 180.0 million as of June 30, 2025, up from EUR 148.0 million at the end of 2024. Total (EPA:TTEF) debt increased to EUR 97.6 million, but the company maintains a negative net debt position of EUR -194.2 million, indicating substantial financial flexibility.
Export and Market Position
Exports continue to be a crucial driver of Končar’s growth, accounting for 71.5% of total sales in the first half of 2025. EU countries represented 70.4% of total exports, with Germany, Sweden, and Austria being the largest markets.
The following breakdown shows the company’s sales distribution between domestic and export markets:
A more detailed analysis of export revenue by region reveals significant growth in several key markets:
Germany saw a 75.1% increase in export revenue to EUR 98.2 million, while Sweden grew by 41.5% to EUR 67.6 million. Norway showed the most dramatic growth at 137.9%, reaching EUR 35.0 million. These figures underscore Končar’s successful penetration of high-value European markets.
Backlog and Future Outlook
One of the most impressive aspects of Končar’s performance is its robust backlog, which stood at EUR 2.32 billion as of June 30, 2025, representing a 27.9% increase compared to the same period last year. This provides exceptional visibility for future revenue.
The backlog breakdown by delivery period and region is illustrated in the following slide:
For 2025, the company expects EUR 731.0 million in revenue from its existing backlog, with EUR 438 million coming from Croatia and EUR 293 million from export markets. The backlog extends well into 2026 and beyond, with EUR 979.1 million scheduled for 2026 and an additional EUR 605.4 million for subsequent years.
The company’s book-to-bill ratio of 1.4 for the first half of 2025 indicates that new orders continue to outpace revenue, suggesting sustained growth momentum:
Strategic Initiatives and Recent Developments
Končar Group continues to invest in expanding its manufacturing capabilities and developing new products. The company is building a cutting-edge testing laboratory in Bedekovčina and has signed a land acquisition agreement in Zaprešić to expand manufacturing capacities for its Distribution and Special Transformers and Instrument Transformers divisions.
Following the end of the reporting period, Končar secured several new contracts, including:
A EUR 18.5 million contract signed on July 25, 2025, with Gradski prijevoz putnika d.o.o. Osijek for the delivery of 10 new trams within 24 months, and a EUR 15.3 million contract with Solarna Elektrana d.o.o. for a new 400 kV transformer substation in Promina.
Looking ahead, Končar remains focused on driving sustained growth, especially via exports, while continuing to invest in equipment, innovation, product development, and employee development. Despite ongoing macroeconomic challenges, the company expressed confidence in its ability to sustain growth and advance its strategic vision outlined in "People, Technologies, Investments – KONČAR 2030."
At the General Assembly held on June 12, 2025, shareholders approved a dividend payout of EUR 3.00 per share, reflecting the company’s strong financial performance and commitment to shareholder returns.
Full presentation:
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