Kontron Cuts Jobs, Major Shareholder Ennoconn Examines Mandatory Offer

Business Prospects Kontron Cuts Jobs, Major Shareholder Ennoconn Examines Mandatory Offer

2026-05-11 From Susanne Braun | Translated by AI 2 min Reading Time

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Although Kontron reports organic revenue growth in the first quarter of 2026, restructuring measures still need to be implemented. The focus is on the GreenTec division, where 500 jobs will be cut. Meanwhile, major shareholder Ennocon is examining the submission of a mandatory offer.

Symbolic image: Kontron has a positive outlook for 2026, but must restructure.(Image: AI-generated) — Symbolic image: Kontron has a positive outlook for 2026, but must restructure.
(Image: AI-generated)

There is positive and not so positive news from the Kontron Group. The positive news: The company achieved organic revenue growth of 1.7 percent to $400 million in the first quarter of 2026, as it announced on May 7, 2026.

The not so positive news: However, the operating result was impacted by restructuring expenses of $9 million for the reduction of 339 jobs; a measure that has already been implemented. And that's not all. Those responsible also announced a comprehensive restructuring program in the GreenTec division, which is still pending.

This includes a reduction of 500 jobs by August 2026 and the restructuring measures are expected to save around $33 million per year. The one-off costs for implementing this plan are estimated at $28 million. The aim is to achieve a sustainable improvement in profitability through high-margin growth areas, according to the announcement. The GreenTec division is expected to return to profitability as early as the fourth quarter of 2026.

Deconsolidation And Strong Divisions

The figures for the first quarter were adjusted for the deconsolidation of the COM business ($21 million) and the sale of the IT services business in Hungary and Bulgaria ($9 million). The Aerospace and Defense divisions (plus 25.2 percent) and Transportation (plus 27.8 percent) grew particularly strongly in the period.

Kontron's goal remains the strategic realignment. In the first quarter, for example, 56% of all development expenditure was carried out in the Software + Solutions division. This area now employs 66% of all employees in development. In addition, the order backlog reached a record level of around $2.8 billion (December 31, 2025: $2.7 billion) with a book-to-bill ratio of 1.13.

Operating cash flow amounted to $10 million in the first quarter (previous year: plus $3 million), reflecting in particular the temporary build-up of inventories as a result of the current supply chain disruptions. Undelivered customer orders (delinquent backlog) of $36 million in the first quarter due to disrupted supply chains are to be reduced by the end of the year.

Outlook for the Financial Year: Cautious to Optimistic

For the 2026 financial year, Kontron expects revenue to be slightly above the previous year's level, which corresponds to organic growth of 8%, despite the lack of $82 million in revenue from the units sold in 2025. The Management Board anticipates adjusted EBITDA of $250 million before restructuring expenses of around 28 million US dollars. Kontron is refraining from further revenue growth through acquisitions due to the current uncertain economic situation.

Mandatory Offer from Ennocon?

At the same time, Kontron could be facing a possible mandatory offer from major shareholder Ennoconn. The Taiwanese company from the Foxconn environment announced in the context of an ad hoc announcement that the Board of Directors had approved the exceeding of the 30 percent shareholding threshold in Kontron. This could be achieved both through further share purchases and as a result of Kontron's current share buyback program. In the event of a mandatory offer, Ennoconn is currently considering an offer price of $26 per share, according to the company. (sb)

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