Interim report
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KSB Solutions . For Life . Half - year Financial Report 2026
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Key Performance Indicators Further information is provided in the Management Report. Interim Group Management Report Interim Consolidated Financial Statements General Information 2 KSB Group / Half-year Financial Report 2026 Business development and earnings 2nd quarter First half of the year 2026 2025 2026 2025 Order intake € m 836.4 820.1 1,848.7 1,698.4 Sales revenue € m 759.7 756.0 1,471.4 1,464.9 Earnings before finance income / expense and income tax (EBIT) € m 58.5 62.5 98.4 108.0
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Interim Group Management Report Interim Consolidated Financial Statements General Information 3 KSB Group / Half-year Financial Report 2026 Order intake Sales revenue EBIT Employees € 1,849 € 1,471 € 98.4 17,153 million ↗ € +150.3 million million ↗ € +6.5 million million ↘ € -9.6 million at 30 June 2026 First Half- year 2026 in Figures ↗ Compared with H1 2025
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Contents 1 Interim Group Management Report 6 Basic Principles of the Group 6 Macroeconomic Environment and Sector View 8 Business Development and Results of Operations 14 Financial Position and Net Assets 18 Report on Expected Developments 18 Opportunities and Risks Report 2 Interim Consolidated Financial Statements 20 Balance Sheet 22 Statement of Comprehensive Income 24 Statement of Changes in Equity 25 Statement of Cash Flows 26 Notes 3 General Information 39 Appropriation of the Net Retained Earnings of KSB SE & Co. KGaA 40 Responsibility Statement 41 Contacts 41 Financial Calendar Key to Symbols Reference to table Interactive table of contents, links directly to the respective page Interim Group Management Report Interim Consolidated Financial Statements General Information 4 KSB Group / Half-year Financial Report 2026
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Interim Group Management Report 6 Basic Principles of the Group 6 Macroeconomic Environment and Sector View 8 Business Development and Results of Operations 14 Financial Position and Net Assets 18 Report on Expected Developments 18 Opportunities and Risks Report Interim Group Management Report Interim Consolidated Financial Statements General Information 5 KSB Group / Half-year Financial Report 2026 1
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Interim Group Management Report for the Six Months Ended 30 June 2026 Basic Principles of the Group The basic business model of the KSB Group (hereinafter also referred to as “KSB” or the “Group”) has not changed compared with the presentation in the 2025 consolidated financial statements. External economic and political changes, however, have had a partial effect on business. These are – where relevant and material to KSB – described in the following sections. KSB takes management decisions primarily on the basis of the key performance indicators – order intake, sales revenue and earnings before finance income / expense and income tax (EBIT) – determined for the Pumps, Valves and KSB SupremeServ reporting segments (hereinafter also referred to as “Segments”). Macroeconomic Environment and Sector View The outlook for global economic development in 2026 has deteriorated significantly following the outbreak of the war in Iran in late February. The closure of the Strait of Hormuz and damage to energy infrastructure led to a sharp rise in energy prices and increased the cost of key industrial intermediate inputs. Higher costs are exacerbating inflationary pressures and weighing on households' willingness to spend as well as companies' business activities. Further geopolitical upheavals and trade conflicts persist in 2026, creating additional uncertainty. They include ongoing tensions between major economic areas, protectionist trade measures and tariffs, as well as uncertainties surrounding the war in Ukraine. Against this backdrop, in its July 2026 forecast, the International Monetary Fund (IMF) downgraded the global growth rate for the current year to 3.0 %, down from 3.3 % at the beginning of the year. However, the aggregate picture masks the disparate development in individual countries. The outlook for importers of raw materials in particular has been revised downwards. The IMF forecasts global inflation to rise by 4.7 %. As a result of the war in Iran, the 2026 forecast for Middle East and North Africa was revised down most sharply, and the region is now expected to enter a recession (0.5 %). Among the advanced economies, there was only a slight downward revision to the growth forecast for 2026, from 1.8 % to 1.7 %. The economic growth forecast for the US was likewise revised only slightly downwards to 2.3 % compared with the estimate at the beginning of the year. In Canada, a generally lower GDP growth rate of 1.1 % is expected compared with previous years, driven by slower pop- ulation growth, weak investment and trade uncertainties. For this year, the IMF reduced its growth forecast for the eurozone by 0.4 percentage points to 0.9 %. Economic growth of 0.7 % is expected for Germany, followed by France at 0.6 % and Italy at 0.5 %. The forecasts for all three countries have therefore been revised downwards since the start of the year. Economic growth in China is projected at 4.6 %, slightly higher than forecast at the beginning of the year. Growth prospects for the Indian economy remained stable, with an expansion of 6.4 % expected. For Brazil, the growth forecast increased significantly from 1.6 % in January to 2.4 %. This was driven in part by surprisingly positive growth in the first quarter. These upward revisions are also attributable to Brazil’s status as an oil exporter, stronger fiscal support, economic policy stimulus and robust private consumption. Slight growth in mechanical engineering The ongoing geopolitical uncertainties and trade barriers continue to dampen investment activity. Areas benefiting from more investments, such as energy infrastructure, defence and data centres, contrast with subdued demand from industry. In this area, the German Mechanical Engineering Industry Association (VDMA) is forecasting growth of 2 % in global real sales revenue for the current year. The association expects the strongest growth in India, followed by China and South Korea. Marginal increases in sales revenue adjusted for inflation are also expected for most eurozone countries. In the reporting period, nominal sales revenue of mechanical engineering companies manufacturing in Germany decreased by 5.1 % year on year. In contrast, order intake increased by 4.7 % over the same period. Nominal sales revenue from liquid pumps manufactured in Germany declined by 6.5 % compared with the prior- Interim Group Management Report Interim Consolidated Financial Statements General Information 6 KSB Group / Half-year Financial Report 2026
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year period. Sales revenue from industrial valves fell by 6.6 %, while sales revenue from building services valves decreased by 10.9 %. Performance of key markets The industrial sector is expected to grow more slowly than the economy as a whole this year, with significant regional differences. These differences are also reflected, to varying degrees and with time lags, in the individual sales markets for pumps and valves. In General Industry, inflation-adjusted production growth in mechanical engineering was predominantly positive in the first few months of the year, albeit with major regional variations. China recorded the highest growth. The slight improvement in the European Union should be viewed as a technical recovery from a low baseline rather than a broad-based economic upturn. Expecta- tions for metal processing were adjusted downwards compared with the start of the year. Global steel production declined during the first few months of the year. Conversely, modest growth is again forecast for vehicle construction. The pharmaceutical industry is expected to experience a significant decline during the year, following a previous year that was marked by exceptionally strong growth, partly due to pull-forward effects. In contrast, the consumer goods industry is expected to grow more strongly than in the previous year. Investments in water and waste water management increase steadily across most regions. This growth continues to be driven by state-subsidised infrastruc- ture programmes, stricter environmental regulations and more stringent requirements in terms of energy efficien- cy and digitalisation. Investments in power generation are expected to rise globally. Spending on renewable energy and storage technologies is set to increase once again, albeit with less momentum than in previous years. Investments in nuclear energy are also developing positively. The picture remains mixed across fossil fuel markets. Investments in the coal sector continue to increase, particularly in Asia, driven by energy security concerns. By contrast, investments in oil-based energy generation are expected to decline again this year, whereas further growth in investments is anticipated for gas. Investment trends relevant to the Petrochemicals / Chemicals business are uneven. The conflict in the Mid- dle East has driven up oil and gas prices, disrupted supply routes, and damaged oil and gas fields and related infrastructure; developments that could have lasting implications for future investment strategies. Against this backdrop, investments in oil production are projected to decline this year, while spending on natural gas is expected to rise, mainly based on figures for projects that have already been approved. Investments in new plants for liquefied petroleum gas are also to increase. In contrast, investments in refinery capacity are expected to see a considerable decline once again. Nevertheless, global net refining capacity is still forecast to expand, supported by a lower rate of refinery closures. The chemical industry continues to grow, however, at a considerably slower pace than in previous years. China remains the main engine for growth, although momentum there has also slowed. Europe, meanwhile, recorded further declines during the first few months of the year. The global construction industry also remains subdued, with only modest growth expected this year. Weakness is particularly evident in residential construction, while non-residential construction is showing somewhat stronger momentum. In mining, the production of nickel, lithium and other metals critical to the energy transition and the expansion of renewable energies remains on a positive trajectory in the medium term. Lithium production is expected to rise sharply again this year. In the nickel market, however, growth in production has lost momentum, and full-year output is forecast to decline slightly year on year. Factors weighing on the market include declining ore grades, extraction restrictions and regulatory measures in Indonesia, as well as shortages of sulphur and sulphuric acid linked to the conflict in the Middle East. Oil sands production increased during the reporting period. Interim Group Management Report Interim Consolidated Financial Statements General Information 7 KSB Group / Half-year Financial Report 2026
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Business Development and Results of Operations The first half of 2026 was marked by geopolitical uncertainties, rising energy prices and a slowing global economy. Despite these challenging conditions, KSB achieved a significant increase in order intake, whilst sales revenue was maintained at the prior-year level. By contrast, earnings before finance income / expense and income tax (EBIT) fell below the previous year’s figure, reflecting the continued demanding market and cost environment. KSB continues to benefit from its broad positioning across several Markets and Regions, so that declines on the one hand can be offset by strengths on the other. Segment reporting Business performance varied across the Segments in the 2026 financial year. The Pumps Segment recorded strong growth in order intake, whereas a noticeable decline was observed in the Valves Segment. The KSB SupremeServ Segment reported a modest increase in order intake. Sales revenue rose moderately in the Pumps Segment, while both the Valves and KSB SupremeServ Segments saw a slight decline. Earnings performance was mixed. EBIT in the Pumps Segment fell sharply, while the Valves Segment recorded an increase. EBIT for the KSB SupremeServ Segment was noticeably down on the previous year’s level. Order intake Order intake in the first six months of the 2026 financial year amounted to € 1,848.7 million (previous year: € 1,698.4 million). The € 150.3 million (8.8 %) year-on- year increase is largely attributable to the positive development of order intake in the Pumps Segment. Adjusted for currency effects of € 43.9 million, order intake would have been up 11.4%. The first-time consolidation of KSB Pumps Arabia Ltd. added € 27.2 million to order intake. Pumps The order intake of € 1,095.4 million (previous year: € 940.8 million) in the Pumps Segment was € 154.6 million or 16.4 % up on the first half of 2025. Adjusted for currency effects of € 23.0 million, order intake would have been up 18.9 %. This growth was largely at- tributable to the Energy business and driven in particular by a major reactor coolant pump order for a nuclear power plant in Eastern Europe. In addition to the very strong performance of the nuclear business, the continued high level of business regarding pumps for gas-fired power plants also drove growth. The Mining business reported a significantly lower order intake than in the comparative prior-year period. Order intake in the Standard Markets decreased noticeably to € 723.9 million (previous year: € 767.1 million), repre- senting a reduction of 5.6 %. This was primarily attributable to sharp declines in the Petrochemicals / Chemicals and Water businesses. Order intake in the Water business fell significantly year on year in the first half of 2026, mainly due to the absence of major orders, which had substantially boosted the prior-year figure. Order intake in the Petrochemicals / Chemicals business in the first half of 2026 was below the high prior-year level. Here, too, the lower number of large-scale projects was the key factor, while business from small and medium-sized orders remained largely stable. The market environment showed signs of a moderate recovery but it remained constrained by structural challenges such as overcapacity, geopolitical uncertainties, regulatory requirements and high trans- formation costs. In contrast, Building Services reported a strong increase in order intake, driven by both steady standard business and high demand in the project business. Overall, General Industry recorded stable development, remaining at prior-year level. However, development performance was mixed. While standard business was largely stable, supported by the securing of new sales partners and the expansion into additional customer segments, project business in individual markets fell short of expectations. Growth was supported by several larger project orders and strong momentum in selected future markets. Valves The Valves Segment saw a noticeable decline in order intake to € 213.2 million (previous year € 225.4 million). Adjusted for currency effects of € 7.4 million, order intake would have been down 2.1 %. The Energy business once again performed positively, driven in particular by higher order intake from nuclear projects. By contrast, a sharp decline was reported for the Water business, attributable primarily to a lack of investment decisions on large-scale projects associated with the geopolitical uncertainty in the Middle East. The Petrochemicals / Chemicals business also remained below the prior-year level against the backdrop of the ongoing challenging market environment in the chemical industry. KSB SupremeServ At € 540.1 million (previous year: € 532.3 million), order intake in the KSB SupremeServ Segment, which covers all service and spare parts activities, held steady around the prior-year level. Adjusted for currency effects of € 13.5 million, order intake would have been up 4.0 %. Service business performed particularly well, while spare parts business remained stable. This development was driven by a significant upswing in the Mining business, noticeable growth in the Water business and a marked decline in the Petrochemicals / Chemicals business. Performance was also weighed down by a downturn in the Energy business Interim Group Management Report Interim Consolidated Financial Statements General Information 8 KSB Group / Half-year Financial Report 2026
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as well as in parts of General Industry and Building Services. Overall, positive developments offset the decreasing demand in some markets. Sales revenue Consolidated sales revenue, which follows order intake with a time lag, increased by € 6.5 million, or 0.4 %, to € 1,471.4 million, thus maintaining the prior-year level (€ 1,464.9 million). The Pumps Segment made the largest contribution to this development, while the Valves and KSB SupremeServ Segments reported a slight decline. Adjusted for currency effects of € 36.7 million, sales revenue would have increased by 2.9 %. Sales revenue includes a contribution of € 18.5 million from the first-time consolidation of KSB Pumps Arabia Ltd. Pumps Sales revenue in the Pumps Segment rose by € 23.3 million or 3.0 % to € 799.1 million (previous year: € 775.8 million). Adjusted for currency effects of € 18.8 million, sales revenue would have increased by 5.4 %. At € 659.4 million (previous year: € 633.6 million), sales revenue in the Standard Markets was up 4.1 %. Within Standard Markets, General Industry made the largest absolute contribution to growth. Stable day-to- day business, the successful completion of ongoing projects and strong demand from several industrial sectors were the principal drivers of this. The negative effects of subdued investment activity in certain markets were largely offset. Building Services achieved the highest percentage growth, primarily driven by successful project business and stable standard business. The market position was further strengthened by ongoing development of the product portfolio and targeted sales and marketing activities. The Water business also recorded significant growth, supported by solid day-to- day business and a large number of orders on hand carried over from the previous year, while the Petrochem- icals / Chemicals business experienced a sharp decline. The Mining business remained at the prior-year level with the Energy business reporting a slight decline. Valves The Valves Segment generated sales revenue of € 195.8 million (previous year: € 200.7 million), representing a decrease of € 4.9 million or 2.4 %. Adjusted for the currency effects of € 5.8 million, sales revenue would have been up 0.5 %. While Standard Markets performed slightly better, project business declined moderately. KSB SupremeServ In the KSB SupremeServ Segment, sales revenue of € 476.4 million was slightly below the previous year’s level of € 488.4 million. Adjusted for currency effects of € 12.0 million, sales revenue would have remained at the prior- year level. This was primarily attributable to a decline in sales of spare parts for pumps. Sales revenue in the Energy business, in particular, decreased significantly. General Industry, in part, also recorded a moderate de- cline in sales revenue. Sales revenue in the Mining business remained slightly below the prior-year figure despite an increase in order intake as some of the orders on hand will only contribute to sales revenue in the coming months. By contrast, the service and valve spare parts businesses saw an increase in sales revenue. Interim Group Management Report Interim Consolidated Financial Statements General Information 9 KSB Group / Half-year Financial Report 2026 Segment reporting Order intake Sales revenue EBIT € millions Six months ended 30 June 2026 Six months ended 30 June 2025 Six months ended 30 June 2026 Six months ended 30 June 2025 Six months ended 30 June 2026 Six months ended 30 June 2025 Pumps Segment 1,095.4 940.8 799.1 775.8 23.8 27.3 Valves Segment 213.2 225.4 195.8 200.7 -1.7 -3.5 KSB SupremeServ Segment 540.1 532.3 476.4 488.4 76.2 84.2 Total 1,848.7 1,698.4 1,471.4 1,464.9 98.4 108.0
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Earnings before finance income / expense and income tax (EBIT) Compared with the prior-year period (€ 108.0 million), EBIT declined by € 9.6 million to € 98.4 million in the first half of 2026. Income of € 16.6 million is included in EBIT from the first-time consolidation of KSB Pumps Arabia Ltd. The decline in EBIT was driven in particular by weaker demand for spare parts in some markets. In ad- dition, higher logistics costs associated with the war in Iran and increased energy expenses exerted additional pressure on EBIT. It again includes external costs of € 12.3 million (previous year: € 13.5 million) incurred during the reporting period for the transition from the SAP R/3 system to SAP S/4HANA. EBIT in the Pumps Segment fell to € 23.8 million from € 27.3 million in the previous year. In the first half of 2026, EBIT in the KSB SupremeServ Segment likewise declined from € 84.2 million in the previous year to € 76.2 million, primarily due to lower spare parts sales. The Valves Segment saw an increase in earnings from € -3.5 million in the previous year to € -1.7 million. Interim Group Management Report Interim Consolidated Financial Statements General Information 10 KSB Group / Half-year Financial Report 2026
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Regional reporting KSB’s Regions evolved in varying ways in the reporting year. In absolute terms, Europe remained the strongest Region both for order intake and sales revenue. The strongest percentage growth in order intake and sales revenue was achieved in the Region Middle East / Africa. With the exception of the Region Europe, nearly all Regions were impacted by negative currency translation effects in the reporting period. Europe For order intake overall, Europe again accounted for the largest business volume by far of all the Group’s Regions. Order intake in this Region rose sharply by 20.0 % to € 969.4 million (previous year: € 807.8 million), driven primarily by a major order for reactor coolant pumps for a nuclear power plant in Eastern Europe. As is the case with order intake, Europe also continues to account for by far the largest share of sales revenue of all the Group’s Regions. At € 702.9 million (previous year: € 718.7 million), sales revenue in the Region Europe was slightly below the prior-year figure. Asia / Pacific As a result of the geopolitical situation, order intake in the Region Asia / Pacific amounted to € 408.1 million (pre- vious year: € 476.1 million), which was 14.3 % below the figure of the previous year. Sales revenue in the Region Asia / Pacific also declined, decreasing by € 20.6 million, or 5.3 %, to € 366.0 million (previous year: € 386.6 million). Americas In the Region Americas, order intake increased by € 27.2 million, or 8.7 %, year on year to € 339.2 million (previous year: € 312.0 million). Sales revenue in the Region Americas rose to € 287.9 million compared with € 277.4 million in the previous year. Middle East / Africa Order intake in the Region Middle East / Africa had the highest percentage growth rate of 28.7 %. It rose to € 132.0 million (previous year: € 102.5 million). Sales revenue in the Region Middle East / Africa also developed positively reaching € 114.7 million (previous year: € 82.3 million). This represents an increase of 39.4 % and the highest percentage growth rate of all Regions. The first-time consolidation of KSB Pumps Arabia Ltd. also contributed to this growth. It increased order intake by € 27.2 million and sales revenue by € 18 million. Interim Group Management Report Interim Consolidated Financial Statements General Information 11 KSB Group / Half-year Financial Report 2026
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Total output of operations At € 1,534.7 million, total output of operations was € 48.6 million or 3.3 % higher than the prior-year figure of € 1,486.2 million. This increase was driven primarily by the increase in inventories of finished goods and work in progress, which rose by € 39.2 million from € 20.5 million to € 59.7 million. Sales revenue was up by € 6.5 million, or 0.4 %, from € 1,464.9 million to € 1,471.4 million. Own work performed and capitalised, which mainly includes capitalised product development costs, rose by € 2.9 million. Income and expenses Other income increased by € 11.4 million, including € 16.6 million from the remeasurement of interest in KSB Pumps Arabia Ltd. This was partially reduced by insur- ance income that was € 3.3 million lower than in the previous year. Given the increase in total output of operations, cost of materials was up by € 45.5 million to a total of € 627.0 million compared with the first six months of the previous year. As a percentage of total output of operations, it rose from 39.1 % in the prior-year period to 40.9 %. Staff costs increased from € 536.2 million to € 556.3 million. As a result, staff costs as a percentage of total output of operations rose by 0.1 percentage points to 36.2 % compared with the prior-year period. The number of employees increased from 16,838 to 17,153 compared with the 2025 year-end figure. The average headcount rose from 16,601 to 17,130 compared with the same period of the previous year. At € 232.3 million, other expenses are at the prior-year level. This was primarily attributable to the € 2.0 million increase in IT costs. Interim Group Management Report Interim Consolidated Financial Statements General Information 12 KSB Group / Half-year Financial Report 2026 Income statement € millions Six months ended 30 June 2026 Six months ended 30 June 2025 Percentage change Sales revenue 1,471.4 1,464.9 0.4 Changes in inventories 59.7 20.5 191.3 Work performed and capitalised 3.6 0.7 387.5 Total output of operations 1,534.7 1,486.2 3.3 Other income * 30.0 18.6 61.0 Cost of materials -627.0 -581.5 7.8 Staff costs -556.3 -536.2 3.8 Depreciation and amortisation -50.8 -48.7 4.2 Other expenses * -232.3 -230.4 0.8 Earnings before finance income / expense and income tax (EBIT) 98.4 108.0 8.9 Finance income 4.2 6.3 33.7 Finance expense -13.8 -12.5 10.7 Income from / expense to investments accounted for using the equity method 0.1 2.2 95.6 Finance income / expense -9.6 -4.0 136.6 Earnings before income tax (EBT) 88.8 104.0 14.6 Taxes on income -28.1 -34.9 19.3 Earnings after income tax 60.7 69.1 12.2 Attributable to: Non-controlling interests 12.6 11.3 11.3 Shareholders of KSB SE & Co. KGaA 48.0 57.8 16.8 Diluted and basic earnings per ordinary share (€) 27.30 32.86 16.9 Diluted and basic earnings per preference share (€) 27.56 33.12 16.8 * The previous year's comparative figures for other income and other expenses have been adjusted. Details of the adjustments made are presented in the Notes.
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Earnings Earnings before finance income / expense and income tax (EBIT) contracted by € 9.6 million from € 108.0 million in the previous year to € 98.4 million, as described in the “Earnings before finance income / expense and income tax (EBIT)” section. Finance income / expense decreased by € 2.1 million, mainly due to the reclassification of the joint venture in Saudi Arabia from at-equity consolidation to full consolidation, as well as lower interest income by € 2.2 million. As a result of the decline in EBIT and finance income / expense, earnings before income tax (EBT) decreased by € 15.2 million, from € 104.0 million in the previous year to € 88.8 million. Taxes on income dropped from € 34.9 million to € 28.1 million. The income tax rate in the first half of 2026 is 31.7 %, after 33.5 % in the comparative prior-year period. The reduction in the tax rate was mainly due to tax-exempt income from the remeasurement of the shares in KSB Pumps Arabia Ltd. Earnings after income tax thus declined by € 8.4 million from € 69.1 million in the previous year to € 60.7 million. Earnings attributable to non-controlling interests amounted to € 12.6 million in absolute terms (previous year: € 11.3 million). Earnings attributable to shareholders of KSB SE & Co. KGaA amounted to € 48.0 million (previous year: € 57.8 million). Earnings per ordinary share were € 27.30, compared with € 32.86 in the previous year, and € 27.56 per preference share, compared with € 33.12 in the first half of 2025. Interim Group Management Report Interim Consolidated Financial Statements General Information 13 KSB Group / Half-year Financial Report 2026
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Financial Position and Net Assets Liquidity Cash flows from operating activities amounted to € 24.8 million (previous year: € 42.7 million). The decline was largely driven by lower earnings after income tax, which were down by € 8.4 million, as well as non-cash income of € 16.6 million from the remeasurement of interest in KSB Pumps Arabia Ltd. In addition, the change in working capital of € -7.0 million and higher income tax payments, up by € 5.3 million (particularly for previous years), also contributed to the decrease. Cash flows from investing activities came to € -73.4 million (comparative prior-year period: € -45.7 million) and mainly included payments for investments amounting to € -61.1 million (previous year: € -57.4 million). Cash inflow from longer-term investments of € 10.9 million was reported in the previous year. The change in other items from investing activities includes, among other things, payments for the acquisition of interests accounted for using the equity method as well as companies classified as immaterial. Cash outflow from financing activities increased slightly year-on-year by € 2.8 million to € -66.8 million in the reporting period (previous year: € -64.1 million). This was primarily attributable to payments of € 1.6 million related to the acquisition of non-controlling interests in Pakistan. Cash and cash equivalents from all cash flows decreased from € 338.6 million as at 31 December 2025 to € 232.2 million. Exchange rate effects of € 4.8 million (previous year: € -12.4 million) contributed to this, in particular in relation to the Chinese yuan, the Brazilian real and the US dollar. From the current perspective, the KSB Group’s finance management continues to assume that it will meet the goal of ensuring liquidity without any additional financing measures. Interim Group Management Report Interim Consolidated Financial Statements General Information 14 KSB Group / Half-year Financial Report 2026 Statement of cash flows € millions Six months ended 30 June 2026 Six months ended 30 June 2025 Percentage change Earnings after income tax 60.7 69.1 12.2 Taxes on income 28.1 34.9 19.3 Finance income / expense 9.6 6.2 54.0 Depreciation and amortisation 50.8 48.7 4.2 Gain / loss on disposal of intangible assets and property, plant and equipment -0.5 -0.7 30.7 Non-cash remeasurement of shares in KSB Pumps Arabia Ltd. -16.6 – — Change in working capital -37.2 -30.3 23.1 Change in other assets and liabilities as well as provisions -32.8 -55.5 41.0 Income tax paid -40.8 -35.5 15.0 Interest received 3.6 5.8 37.6 Cash flows from operating activities 24.8 42.7 41.8 Payments to acquire intangible assets and property, plant and equipment -61.1 -57.4 6.4 Change in deposits 1.2 10.9 89.0 Change in the other items from investing activities -13.5 0.8 1,762.9 Cash flows from investing activities -73.4 -45.7 60.7 Dividends paid -52.6 -53.3 1.3 Change in financial liabilities (including lease liabilities) -11.4 -9.9 14.7 Interest paid -1.2 -0.9 41.3 Business from equity transactions -1.6 – – Cash flows from financing activities -66.8 -64.1 4.3 Changes in cash and cash equivalents -115.4 -67.1 72.1 Effects of exchange rate changes on cash and cash equivalents 4.8 -12.4 138.3 Effects of changes in consolidated Group 4.3 0.3 – Cash and cash equivalents at beginning of period 338.6 369.3 8.3 Cash and cash equivalents at end of period 232.2 290.1 20.0
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Investments Investments in the first half of 2026 amounted to € 48.7 million, € 8.1 million lower year on year. In- vestments were made above all in Europe – in particular in Germany and France. Outside Europe, the focus of investments was on the USA, India and China. The investments comprise primarily investments in the expansion of production capacities and productivity enhancement. Net financial position The KSB Group’s net financial position declined from € 315.4 million as at 31 December 2025 to € 195.7 million. Cash flows from operating activities of € 24.8 million were offset in particular by payments for investments of € 61.1 million and dividend payments of € 52.6 million. Furthermore, payments amounting to € 14.6 million were made in respect of companies that were not fully consolidated due to their immateriality and investments accounted for using the equity method. Net Assets Non-current assets of € 1,018.0 million increased by € 48.8 million compared with the level as at 31 Decem- ber 2025 (€ 969.2 million). Property, plant and equipment increased by € 24.2 million. This mainly covers land and buildings (€ 12.8 million), technical equipment and machinery (€ 7.4 million), and advance payments (€ 7.3 million). The first-time consolidation of KSB Saudi Arabia Ltd. led to an increase in property, plant and equipment of € 15.6 million. Intangible assets increased by € 15.1 million compared with the level as at 31 December 2025. Of this amount, € 12.6 million was attributable to preliminary goodwill from the full consolidation of KSB Pumps Arabia Ltd. Deferred tax assets rose by € 6.8 million, from € 66.1 million in the previous year to € 72.9 million in the reporting period. At € 835.3 million, inventories were up € 83.0 million on the 2025 year-end level (€ 752.4 million) . The first-time consolidation of KSB Saudi Arabia Ltd. led to an increase in inventories of € 22.1 million. The € 12.5 million increase in contract assets to € 78.4 million was primarily attributable to the fact that the level of completion of customer orders increased by € 18.4 million, while the advance payments received from customers for these customer contracts only rose by € 5.9 million. Trade receivables increased by € 42.5 million to € 662.4 million compared with the level as at 31 Decem- ber 2025. Interim Group Management Report Interim Consolidated Financial Statements General Information 15 KSB Group / Half-year Financial Report 2026 Assets € millions 30 June 2026 31 Dec. 2025 Percentage change Non-current assets Intangible assets 88.4 73.3 20.6 Right-of-use assets 56.1 58.6 4.2 Property, plant and equipment 743.8 719.6 3.4 Non-current financial assets 2.7 1.8 52.2 Other non-financial assets 17.8 11.1 59.5 Investments accounted for using the equity method 36.4 38.8 6.3 Deferred tax assets 72.9 66.1 10.3 1,018.0 969.2 5.0 Current assets Inventories 835.3 752.4 11.0 Contract assets 78.4 65.9 18.9 Trade receivables 662.4 619.8 6.9 Other financial assets 58.4 66.8 12.6 Other non-financial assets 79.8 70.5 13.2 Cash and cash equivalents 232.2 338.6 31.4 1,946.5 1,914.1 1.7 2,964.5 2,883.3 2.8
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Other current financial assets fell by € 8.4 million. This was largely attributable to lower longer-term invest- ments in the amount of € 3.4 million and lower loan receivables of € 3.0 million from companies that are not fully consolidated. Other current non-financial assets increased from € 70.5 million in the prior-year period to € 79.8 million, above all due to prepaid expenses that were up € 12.5 million, partially offset by a € 3.2 million decrease in receivables from other taxes. Cash and cash equivalents accounted for around 8 % of assets, totalling € 232.2 million (previous year: € 338.6 million). Total assets amounted to € 2,964.5 million as at 30 June 2026, representing an increase of € 81.2 million, or 2.8 %, compared with the 2025 year-end figure. This change resulted primarily from higher inventories up by € 83.0 million, higher trade receivables up by € 42.5 million, and property, plant and equipment up by € 24.2 million, partially offset by a decrease in cash and cash equivalents of € 106.4 million. Interim Group Management Report Interim Consolidated Financial Statements General Information 16 KSB Group / Half-year Financial Report 2026
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Equity KSB Group equity increased from € 1,391.2 million (31 December 2025) to € 1,436.0 million. € 23.2 million of the € 44.7 million increase was attrib- utable to the shareholders of KSB SE & Co. KGaA, while the share attributable to non-controlling interests in- creased by € 21.5 million. Of this amount, € 13.5 million related to the preliminary purchase price allocation of KSB Pumps Arabia Ltd. A positive contribution of € 60.7 million came from earnings after income tax. Currency translation effects were a contributor to the increase of € 19.2 million in other comprehensive income included in equity. These positive effects were partly offset by dividends paid to- talling € 52.6 million. The equity ratio of 48.4 % was at the same level as at 31 December 2025 (48.3 %). Liabilities Liabilities rose from € 1,492.1 million at the end of the previous year to € 1,528.5 million. This change (€ 36.4 million or 2.4 %) was essentially attributable to a € 50.6 million increase in contract liabilities, partly offset by other liabilities, down by € 20.4 million, and pension obligations, down by € 4.8 million, due to the higher dis- count rate. The first-time consolidation of KSB Pumps Arabia Ltd. increased liabilities by € 34.8 million. Interim Group Management Report Interim Consolidated Financial Statements General Information 17 KSB Group / Half-year Financial Report 2026 Equity and liabilities € millions 30 June 2026 31 Dec. 2025 Percentage change Equity Subscribed capital 44.8 44.8 – Capital reserve 66.7 66.7 – Revenue reserves 1,072.6 1,049.4 2.2 Equity attributable to shareholders of KSB SE & Co. KGaA 1,184.0 1,160.8 2.0 Non-controlling interests 251.9 230.4 9.3 1,436.0 1,391.2 3.2 Non-current liabilities Provisions for pensions and similar obligations 450.4 455.2 1.1 Other provisions 10.2 10.8 5.1 Financial liabilities 42.7 39.0 9.5 Deferred tax liabilities 9.9 9.6 2.5 513.2 514.7 0.3 Current liabilities Other provisions 101.8 100.9 0.9 Financial liabilities 24.9 22.3 11.3 Contract liabilities 266.2 215.7 23.4 Trade payables 365.3 362.7 0.7 Other financial liabilities 22.1 33.8 34.5 Other non-financial liabilities 199.1 207.8 4.2 Income tax liabilities 35.8 34.2 4.7 1,015.3 977.4 3.9 2,964.5 2,883.3 2.8
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Report on Expected Developments The following projections for the Group’s key financial performance indicators for the 2026 financial year were made in the 2025 Annual Report: • Order intake: € 3,100 million to € 3,500 million • Sales revenue: € 2,900 million to € 3,200 million • EBIT: € 220 million to € 265 million KSB confirms the 2026 forecast for order intake, sales revenue and EBIT for the Group as a whole. For order intake, KSB can confirm the forecasts for the Pumps Segment and the Valves Segment made in the Annual Report. For the KSB SupremeServ Segment, however, stable development is now anticipated instead of the slight to significant increase. For sales revenue, KSB confirms the Pumps Segment and Valves Segment forecasts. A slight decline is anticipated for the KSB SupremeServ Segment instead of the stable to slight increase in sales revenue. Concerning EBIT in the Pumps Segment, KSB confirms the forecast made in the 2025 Annual Report. However, EBIT of the Valves Segment, which was expected to be slightly positive, is now anticipated to be slightly negative. Likewise, earnings in the KSB SupremeServ Segment are now projected to remain at the prior-year level rather than to slightly to significantly increase. Forward-looking Statements This report contains forward-looking statements and information that are based upon the assumptions of the Managing Directors. They express current forecasts and expectations with regard to future events. As a result, these forward-looking statements and information are exposed to risks and uncertainties that lie outside the Management’s sphere of influence. KSB wishes to point out that actual events or results may differ materially from the forward-looking statements and information presented, if one or more of the following opportunities or risks, or other opportunities, risks and uncertainties should materialise, or if the assumptions underlying the statements prove to be inaccurate. Opportunities and Risks Report Opportunities and risks KSB sees facing its business were presented in detail in the 2025 Annual Report. There has been no material change to the overall risk situation for KSB compared with this presentation. The legal representative continues to state that at the present time, according to the analysis of the KSB Group’s overall risk position and risk-bearing capacity, no threat has been identified to the business continuity of the KSB Group. Audit Review This interim Group management report – as well as the underlying condensed interim consolidated financial statements – have neither been audited nor reviewed in accordance with Section 317 HGB [German Commercial Code]. Information and Publication Due to rounding, there may be minor differences in the totals, the percentages and information on changes presented in the management report compared with the previous year. The half-year financial report is published on the ksb.com web site. Interim Group Management Report Interim Consolidated Financial Statements General Information 18 KSB Group / Half-year Financial Report 2026
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2 Interim Consolidated Financial Statements 20 Balance Sheet 22 Statement of Comprehensive Income 24 Statement of Changes in Equity 25 Statement of Cash Flows 26 Notes Interim Group Management Report Interim Consolidated Financial Statements General Information 19 KSB Group / Half-year Financial Report 2026
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Balance Sheet Assets € millions Notes 30 June 2026 31 Dec. 2025 Non-current assets Intangible assets 1 88.4 73.3 Right-of-use assets 1 56.1 58.6 Property, plant and equipment 1 743.8 719.6 Non-current financial assets 1 2.7 1.8 Other non-financial assets 1 17.8 11.1 Investments accounted for using the equity method 1 36.4 38.8 Deferred tax assets 15 72.9 66.1 1,018.0 969.2 Current assets Inventories 2 835.3 752.4 Contract assets 3 78.4 65.9 Trade receivables 3 662.4 619.8 Other financial assets 3 58.4 66.8 Other non-financial assets 3 79.8 70.5 Cash and cash equivalents 4 232.2 338.6 1,946.5 1,914.1 2,964.5 2,883.3 Interim Group Management Report Interim Consolidated Financial Statements General Information 20 KSB Group / Half-year Financial Report 2026
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Equity and liabilities € millions Notes 30 June 2026 31 Dec. 2025 Equity 5 Subscribed capital 44.8 44.8 Capital reserve 66.7 66.7 Revenue reserves 1,072.6 1,049.4 Equity attributable to shareholders of KSB SE & Co. KGaA 1,184.0 1,160.8 Non-controlling interests 251.9 230.4 1,436.0 1,391.2 Non-current liabilities Provisions for pensions and similar obligations 6 450.4 455.2 Other provisions 7 10.2 10.8 Financial liabilities 8 42.7 39.0 Deferred tax liabilities 9.9 9.6 513.2 514.7 Current liabilities Other provisions 7 101.8 100.9 Financial liabilities 8 24.9 22.3 Contract liabilities 8 266.2 215.7 Trade payables 8 365.3 362.7 Other financial liabilities 8 22.1 33.8 Other non-financial liabilities 8 199.1 207.8 Income tax liabilities 8 35.8 34.2 1,015.3 977.4 2,964.5 2,883.3 Further information is provided in the Notes to the consolidated financial statements. Interim Group Management Report Interim Consolidated Financial Statements General Information 21 KSB Group / Half-year Financial Report 2026
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Statement of Comprehensive Income Income statement € millions Notes Six months ended 30 June 2026 Six months ended 30 June 2025 Sales revenue 9 1,471.4 1,464.9 Changes in inventories 59.7 20.5 Work performed and capitalised 3.6 0.7 Total output of operations 1,534.7 1,486.2 Other income * 10 30.0 18.6 Cost of materials 11 -627.0 -581.5 Staff costs 12 -556.3 -536.2 Depreciation and amortisation 1 -50.8 -48.7 Other expenses * 13 -232.3 -230.4 Earnings before finance income / expense and income tax (EBIT) 98.4 108.0 Finance income 14 4.2 6.3 Finance expense 14 -13.8 -12.5 Income from / expense to investments accounted for using the equity method 14 0.1 2.2 Finance income / expense -9.6 -4.0 Earnings before income tax (EBT) 88.8 104.0 Taxes on income 15 -28.1 -34.9 Earnings after income tax 60.7 69.1 Attributable to: Non-controlling interests 16 12.6 11.3 Shareholders of KSB SE & Co. KGaA 48.0 57.8 Diluted and basic earnings per ordinary share (€) 17 27.30 32.86 Diluted and basic earnings per preference share (€) 17 27.56 33.12 * Due to offsetting related to the remeasurement of impairment losses on trade receivables and contract assets, the amount of other operating income and other expenses reported for the prior-year period decreased in equal measure by € 3.1 million compared with the figures reported in the Half-year Financial Report 2025. Interim Group Management Report Interim Consolidated Financial Statements General Information 22 KSB Group / Half-year Financial Report 2026
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Statement of income and expense recognised in equity € millions Notes Six months ended 30 June 2026 Six months ended 30 June 2025 Earnings after income tax 60.7 69.1 Remeasurement of defined benefit plans 6.1 13.4 Taxes on income -1.6 -4.3 Remeasurement of defined benefit plans attributable to investments accounted for using the equity method 0.0 0.0 Items not reclassified to profit or loss in subsequent periods 4.5 9.1 Currency translation differences 20.6 -73.6 Changes in the fair value of financial instruments: Hedging reserve -2.5 7.5 Taxes on income: Hedging reserve 0.8 -2.4 Changes in the fair value of financial instruments: Hedging cost reserve 0.0 -0.5 Taxes on income: Hedging cost reserve 0.0 0.2 Expense and income recognised directly in equity attributable to investments accounted for using the equity method 1.0 -3.3 Items reclassified to profit or loss in subsequent periods if required 19.9 -72.1 Other comprehensive income 24.4 -63.0 Total comprehensive income 85.0 6.1 Attributable to: Non-controlling interests 14.9 -15.2 Shareholders of KSB SE & Co. KGaA 70.1 21.3 Further information is provided in the Notes to the consolidated financial statements. Interim Group Management Report Interim Consolidated Financial Statements General Information 23 KSB Group / Half-year Financial Report 2026
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Statement of Changes in Equity Revenue reserves Other comprehensive income € millions Subscribed capital of KSB SE & Co. KGaA Capital reserve of KSB SE & Co. KGaA Other revenue reserves Currency translation differences Changes in the fair value of financial instruments: Hedging reserve Changes in the fair value of financial instruments: Hedging cost reserve Remeasure- ment of defined benefit plans Equity attributable to shareholders of KSB SE & Co. KGaA Non- controlling interests Total equity 1 Jan. 2025 44.8 66.7 1,231.2 -126.6 -2.3 -0.1 -121.2 1,092.5 242.9 1,335.4 Other comprehensive income – – – -50.6 5.2 -0.4 9.3 -36.4 -26.5 -63.0 Earnings after income tax – – 57.8 – – – – 57.8 11.3 69.1 Total comprehensive income – – 57.8 -50.6 5.2 -0.4 9.3 21.3 -15.2 6.1 Dividends paid – – -46.6 – – – – -46.6 -6.6 -53.3 Capital increase / decrease – – – – – – – – – – Step acquisitions – – – – – – – – – – Other – – -0.1 – – – – -0.1 – -0.1 30 June 2025 44.8 66.7 1,242.2 -177.1 2.9 -0.5 -111.8 1,067.2 221.0 1,288.2 Revenue reserves Other comprehensive income € millions Subscribed capital of KSB SE & CO. KGaA Capital reserve of KSB SE & Co. KGaA Other revenue reserves Currency translation differences Changes in the fair value of financial instruments: Hedging reserve Changes in the fair value of financial instruments: Hedging cost reserve Remeasure- ment of defined benefit plans Equity attributable to shareholders of KSB SE & Co. KGaA Non- controlling interests Total equity 1 Jan. 2026 44.8 66.7 1,322.8 -177.6 0.8 -0.3 -96.3 1,160.8 230.4 1,391.2 Other comprehensive income – – – 19.2 -1.8 0.0 4.6 22.1 2.3 24.4 Earnings after income tax – – 48.0 – – – – 48.0 12.6 60.7 Total comprehensive income – – 48.0 19.2 -1.8 0.0 4.6 70.1 14.9 85.0 Dividends paid – – -46.6 – – – – -46.6 -5.9 -52.6 Capital increase / decrease – – – – – – – – – – Step acquisitions – – 0.5 -1.2 – – 0.0 -0.7 -1.0 -1.6 Other – – 1.0 -0.5 – – -0.1 0.4 13.5 13.9 30 June 2026 44.8 66.7 1,325.8 -160.1 -1.0 -0.3 -91.8 1,184.0 251.9 1,436.0 Interim Group Management Report Interim Consolidated Financial Statements General Information 24 KSB Group / Half-year Financial Report 2026
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Statement of Cash Flows Earnings after income tax 60.7 69.1 Taxes on income 28.1 34.9 Finance income -4.2 -6.3 Finance expense 13.8 12.5 Depreciation and amortisation 50.8 48.7 Gain / loss on disposal of intangible assets and property, plant and equipment -0.5 -0.7 Non-cash remeasurement of interest in KSB Pumps Arabia Ltd. -16.6 – Change in inventories -56.0 -43.4 Change in contract assets -12.2 3.7 Change in trade receivables -13.9 -25.4 Change in provisions -10.3 -19.5 Change in contract liabilities 36.8 20.2 Change in trade payables 8.0 14.6 Change in other assets and liabilities -22.5 -36.1 Income tax paid -40.8 -35.5 Interest received 3.6 5.8 Cash flows from operating activities 24.8 42.7 € millions Six months ended 30 June 2026 Six months ended 30 June 2025 Proceeds from disposal of intangible assets and property, plant and equipment 0.9 2.6 Payments to acquire intangible assets and property, plant and equipment -61.1 -57.4 Acquisition of joint ventures and associates -5.2 -2.0 Proceeds from deposits with an original maturity of more than 3 months 6.4 14.3 Payments for deposits with an original maturity of more than 3 months -5.2 -3.4 Proceeds from investments in Group companies that are not fully consolidated – – Payments for investments in Group companies that are not fully consolidated -3.3 – Proceeds from dividends from Group companies that are not fully consolidated 0.2 0.3 Payments for capitalisation measures with Group companies that are not fully consolidated -6.1 – Cash flows from investing activities -73.4 -45.7 Dividends paid to shareholders of KSB SE & Co. KGaA -46.6 -46.6 Dividends paid to non-controlling interests -5.9 -6.6 Proceeds from financial liabilities 3.2 1.8 Payments for financial liabilities (not including lease liabilities) -3.5 -2.0 Repayment of lease liabilities -11.0 -9.7 Interest paid -1.2 -0.9 Other equity transactions -1.6 – Cash flows from financing activities -66.8 -64.1 Changes in cash and cash equivalents -115.4 -67.1 Effects of exchange rate changes on cash and cash equivalents 4.8 -12.4 Effects of changes in consolidated Group 4.3 0.3 Cash and cash equivalents at beginning of period 338.6 369.3 Cash and cash equivalents at end of period 232.2 290.1 € millions Six months ended 30 June 2026 Six months ended 30 June 2025 Interim Group Management Report Interim Consolidated Financial Statements General Information 25 KSB Group / Half-year Financial Report 2026
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Notes I. General Information on the Group Basis of preparation of the interim consolidated financial statements These unaudited condensed interim consolidated financial statements of KSB SE & Co. KGaA, Frankenthal / Pfalz, Germany, have been prepared in accordance with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB), as adopted by the European Union (EU), taking into consideration the interpretations of the IFRS Inter- pretations Committee (IFRIC). The standards and interpretations applicable as at 1 January 2026 were used. The interim consolidated financial statements have been prepared in euros (€) on a going concern basis. Amounts in this report are generally presented in millions of euros (€ millions) using standard commercial rounding rules and in condensed form pursuant to IAS 34. Due to rounding, there may be minor differences in the totals and percentages presented in this report. New accounting principles Compared with the consolidated financial statements for the 2025 financial year, no accounting standards and interpretations were adopted for the first time that had a material impact on the KSB Group’s (hereinafter also referred to as “KSB” or the “Group”) assets, liabilities, financial position and results of operations. KSB is preparing to apply IFRS 18 Presentation and Disclosure in Financial Statements from 1 January 2027. This is expected to impact the structure of the Group’s income statement in particular. In particular, this will affect the classification of income and expenses in the categories of operating profit or loss, investing profit or loss, and financing profit or loss, as well as the reporting of defined subtotals in the income statement. II. Consolidation principles Consolidated Group As at 30 June 2026, in addition to KSB SE & Co. KGaA, 10 German and 80 foreign companies were fully consolidated in the interim consolidated financial statements. The equity method was used to consolidate four joint ventures and three associate companies as at 30 June 2026. Changes in the consolidated Group KSB Pumps Arabia Ltd., Riyadh, Saudi Arabia, in which KSB continues to hold a 50.00 % equity interest, is now fully consolidated in the Group financial statements following additional contractual agreements with the co- owner. From the Group’s perspective, the company was considered a joint venture up until and including 31 December 2025, with the investment accounted for using the equity method. The remeasurement of the Group’s interest upon gaining control resulted in other income of € 16.6 million during the reporting period. The values presented below are based on a provisional purchase price allocation and may differ from those determined in the final evaluation. Summary of assets and liabilities included in the consolidated financial statements, excluding goodwill (preliminary measurement) € millions 1 January 2026 Non-current assets 17.3 Current assets 40.3 Total assets 57.6 Non-current liabilities 7.9 Current liabilities 22.7 Total liabilities 30.6 Net assets 27.0 In addition, this transaction resulted in the Group’s goodwill to rise by € 12.2 million as at 1 January 2026. In the reporting period, KSB Pumps Arabia Ltd. generated a contribution of € 1.6 million to earnings before finance income / expense and income tax (EBIT) and € 1.1 million to the KSB Group’s earnings after income tax. In the first half of the 2026 financial year, there were also the following changes in the consolidated Group, none of which had a material impact on the Group’s assets, financial position and results of operations. Against this background, no further information is provided in this context. In the reporting period, KSB acquired 100 % of the shares in a group of companies based in Southeast Europe to enhance service activities in this region. The companies concerned have not been consolidated due to their immateriality. Interim Group Management Report Interim Consolidated Financial Statements General Information 26 KSB Group / Half-year Financial Report 2026
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Following an increase in the Group’s previously minor interest in ai-omatic solutions GmbH, Hamburg, to 46.71 % during the reporting period, the company is now recognised as an associate accounted for using the equity method. The interest held by the Group in KSB Pumps Company Limited, Lahore, Pakistan, increased from 72.54 % to 80.00 %. Consolidation and currency translation methods There were no material changes to consolidation methods or currency translation methods compared with the consolidated financial statements for the 2025 financial year. III. Accounting policies The accounting policies were essentially unchanged from the consolidated financial statements for the 2025 financial year. They apply to all companies included in the interim consolidated financial statements. Interim Group Management Report Interim Consolidated Financial Statements General Information 27 KSB Group / Half-year Financial Report 2026 Exchange rates of the most important currencies Closing rate Average rate 1 euro equals 30 June 2026 30 June 2025 Six months ended 30 June 2026 Six months ended 30 June 2025 US dollar 1.1394 1.1720 1.1666 1.0839 Brazilian real 5.9003 6.4384 6.0127 6.2378 Indian rupee 107.8565 100.5605 105.2272 93.2944 Chinese yuan 7.7314 8.3970 8.0073 7.8589
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IV. Balance sheet disclosures 1. Non-current assets In the first six months of the 2026 financial year, additions of € 48.7 million (compared with € 56.8 million for the same period of the previous year) were recognised for property, plant and equipment, right-of- use assets and intangible assets. At € 50.8 million (previous year: € 48.7 million), depreciation and amortisation on these items were slightly above the level of the comparative prior-year period. Overall, no material impairment losses and reversals of impairment losses were recognised on intangible assets, property, plant and equipment, and right-of-use assets in the reporting period – as was the case too in the first half of 2025. 2. Inventories The increase in inventories compared with the year-end figure in 2025 was mainly due to higher levels of work in progress and finished goods. Correspondingly, contract liabilities also increased as a result of higher advance prepayments received from customers in respect of current contracts. 3. Contract assets, trade receivables and other financial and non-financial assets Impairment losses of € 39.9 million (year-end figure in 2025: € 34.8 million) were recognised on trade receiv- ables and contract assets as at the reporting date. This increase was primarily due to impairment losses on trade receivables from third parties attributable to the now fully consolidated KSB Pumps Arabia Ltd. → Contract assets, trade receivables and other financial and non-financial assets 4. Cash and cash equivalents Cash and cash equivalents are term deposits with short maturities and call deposits, and also current account balances. Cash equivalents include short-term deposits with an original maturity of less than three months. Interim Group Management Report Interim Consolidated Financial Statements General Information 28 KSB Group / Half-year Financial Report 2026 € millions 30 June 2026 31 Dec. 2025 Raw materials, consumables and supplies 259.7 244.6 Work in progress 327.0 284.5 Finished goods and goods purchased and held for resale 220.6 197.3 Advance payments 28.2 25.9 835.3 752.4 Contract assets and trade receivables as well as other financial and non-financial assets € millions 30 June 2026 31 Dec. 2025 Contract assets 78.4 65.9 Trade receivables 662.4 619.8 Trade receivables from third parties 623.8 572.3 Trade receivables from related parties 38.5 47.6 Other financial assets 58.4 66.8 Receivables from loans to related parties 0.4 3.4 Currency forwards 2.5 2.7 Other receivables and other current assets 55.4 60.7 Other non-financial assets 79.8 70.5 Income tax receivables 24.8 16.0 Receivables from other taxes 22.4 34.3 Deferred income 32.7 20.2
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5. Equity There was no change in the share capital of KSB SE & Co. KGaA as against the previous year. In accordance with the Articles of Association, it totals € 44,771,963.82 and, as in the previous year, is composed of 886,615 ordinary shares and 864,712 preference shares. Each no- par-value share represents an equal notional amount of the share capital. The preference shares carry separate cumulative preferred dividend rights in the amount of € 1.03 and progressive additional dividend rights. All shares are no-par-value bearer shares. The individual shares have no par value. The development of the currency translation differences recognised in equity is shown in the table below. Non-controlling interests relate primarily to PAB Pumpen- und Armaturen-Beteiligungsges. mbH, Frankenthal / Pfalz, and the interests it holds, as well as to KSB Limited in India, KSB Shanghai Pump Co., Ltd in China and KSB Pumps Arabia Ltd. in Saudi Arabia, which was fully consolidated for the first time in the first half of 2026. KSB SE & Co. KGaA, Frankenthal / Pfalz, holds a 51 % interest in PAB Pumpen- und Armaturen- Beteiligungsges. mbH, while Johannes und Jacob Klein GmbH, Frankenthal / Pfalz, holds a 49 % interest. The development of the equity items, including the non- controlling interests of other shareholders, is presented in the Statement of Changes in Equity. Other co-owners' non-controlling interests in KSB Pumps Arabia Ltd. as at 1 January 2026, amounting to € 13.5 million, are reported under “Other”. Interim Group Management Report Interim Consolidated Financial Statements General Information 29 KSB Group / Half-year Financial Report 2026 Development of currency translation differences in equity € millions Currency translation differences in equity attributable to shareholders of KSB SE & Co. KGaA Currency translation differences in non-controlling interests Total amount of currency translation differences in equity 1 Jan. 2025 -126.6 -17.4 -143.9 Change in 2025 -50.6 -26.3 -76.9 30 June 2025 -177.1 -43.7 -220.8 1 Jan. 2026 -177.6 -48.8 -226.5 Change in 2026 17.5 3.6 21.2 30 June 2026 -160.1 -45.2 -205.3
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6. Provisions for pensions and similar obligations The pension obligations in the KSB Group include defined contribution and defined benefit plans and contain both obligations from current pensions and future pension benefit entitlements. Most of the provisions for pensions and similar obli- gations in the amount of € 450.4 million (year-end figure in 2025: € 455.2 million) result primarily from defined benefit plans in place for the German Group companies. Available plan assets are offset against the Group’s pension obligations. 7. Other provisions The provisions for warranty obligations and contractual penalties reported under other provisions cover the statutory and contractual obligations to customers. Provisions for employee benefits relate primarily to anniversary and partial retirement obligations. KSB uses provisions for onerous contracts to account for expected losses resulting in particular from project orders with customers. Miscellaneous other provisions include, inter alia, provisions for process risks. Interim Group Management Report Interim Consolidated Financial Statements General Information 30 KSB Group / Half-year Financial Report 2026 € millions 30 June 2026 31 Dec. 2025 Warranty obligations and contractual penalties 65.5 65.3 Employee benefits 17.4 17.9 Onerous contracts 4.4 5.6 Miscellaneous other provisions 24.7 22.8 112.0 111.7
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8. Liabilities Interim Group Management Report Interim Consolidated Financial Statements General Information 31 KSB Group / Half-year Financial Report 2026 Non-current liabilities € millions 30 June 2026 31 Dec. 2025 Financial liabilities 42.7 39.0 Bank loans and overdrafts 3.5 0.1 Finance lease liabilities 36.0 38.7 Other 3.2 0.3 Current liabilities € millions 30 June 2026 31 Dec. 2025 Financial liabilities 24.9 22.3 Bank loans and overdrafts 6.6 3.6 Finance lease liabilities 18.2 18.6 Other 0.1 0.0 Contract liabilities 266.2 215.7 Trade payables 365.3 362.7 Trade payables to third parties 349.9 347.7 Trade payables to related parties 15.4 15.0 Other financial liabilities 22.1 33.8 Currency forwards 5.6 2.3 Miscellaneous other financial liabilities 16.5 31.5 Other non-financial liabilities 199.1 207.8 Social security and liabilities to employees 157.3 169.4 Tax liabilities (excluding income tax) 35.9 33.6 Investment grants and subsidies 6.0 4.9 Income tax liabilities 35.8 34.2
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V. Income Statement Disclosures 9. Sales revenue The Group’s consolidated sales revenue during the reporting period was € 1,471.4 million (previous year: € 1,464.9 million). KSB generates income from the transfer of goods and services over time or at a point in time in the segments presented. → Sales revenue by segment and timing of revenue recognition Detailed information on KSB’s Segments is provided in Section VII. Segment Reporting of the Notes to the consolidated financial statements. Interim Group Management Report Interim Consolidated Financial Statements General Information 32 KSB Group / Half-year Financial Report 2026 Sales revenue by segment and timing of revenue recognition in the first six months of 2025 € millions Segment Pumps Segment Valves KSB SupremeServ Segment Total Sales revenue 775.8 200.7 488.4 1,464.9 Of which goods and services transferred at a point in time 677.2 191.2 308.3 1,176.7 Of which goods and services transferred over time 98.7 9.4 180.1 288.2 Sales revenue by segment and timing of revenue recognition in the first six months of 2026 € millions Segment Pumps Segment Valves KSB SupremeServ Segment Total Sales revenue 799.1 195.8 476.4 1,471.4 Of which goods and services transferred at a point in time 694.7 182.6 287.1 1,164.4 Of which goods and services transferred over time 104.4 13.2 189.3 306.9
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10. Other income € 3.4 million of the income from insurance compen- sation in the first half of 2025 was related to the 2022 cyber-attack on KSB. Other income for the reporting period includes € 16.6 million arising from the remeasurement of the Group’s interest in KSB Pumps Arabia Ltd. in connection with the company’s first-time full consolidation. This item also relates to a large number of individual items and includes, among other things, remuneration for various other services rendered by the Group outside its core business activities. 11. Cost of materials The cost of materials amounted to € 627.0 million (previous year: € 581.5 million) in the reporting period. This item includes expenses for raw materials, consumables and supplies and for goods and services purchased. 12. Staff costs The average number of employees in the reporting period was 17,130, compared with 16,601 in the first half of the previous year. 13. Other expenses Administrative expenses include, among other things, external costs of € 12.3 million (previous year: € 13.5 million) for the transition from the SAP R/3 system to SAP S/4HANA. Interim Group Management Report Interim Consolidated Financial Statements General Information 33 KSB Group / Half-year Financial Report 2026 € millions Six months ended 30 June 2026 Six months ended 30 June 2025 Administrative expenses 94.6 92.1 Repairs, maintenance, third-party services 45.4 45.3 Marketing and selling expenses 44.8 43.8 Other staff costs 24.0 22.7 Rents and leases 7.6 6.8 Other taxes 6.9 7.2 Remeasurement of impairment losses on trade receivables and contract assets * 1.6 1.5 Currency translation losses 1.1 7.1 Losses from disposal of intangible assets and property, plant and equipment 0.3 0.4 Miscellaneous other expenses * 6.0 3.5 232.3 230.4 * In the 2025 Half-year Financial Report, income in the amount of € 3.1 million from the reversal of impairment losses on trade receivables and contract assets was disclosed under other income, and the effects of a write-down of the aforementioned balance sheet item in the amount of € 0.1 million was included as miscellaneous expenses under other expenses. The new item for the remeasurement of impairment losses on trade receivables and contract assets now combines these changes along with the earnings effects of additions to impairment losses. For the prior-year period, this results in a reduction of € 3.1 million in both the disclosed other income and other expenses compared with the figures presented in the 2025 Half-year Financial Report. € millions Six months ended 30 June 2026 Six months ended 30 June 2025 * Government grants 4.1 4.6 Currency translation gains 2.9 3.6 Gains on disposal of intangible assets and property, plant and equipment 0.8 1.1 Insurance compensation 0.4 3.8 Miscellaneous other income 21.7 5.5 30.0 18.6 * The amount of other income disclosed for the prior-year period is € 3.1 million less than the amount presented in the 2025 Half-year Financial Report. Income from the reversal of impairment losses, which was previously reported separately under other income, is now presented under other expenses in the item “Remeasurement of impairment losses on trade receivables and contract assets”. € millions Six months ended 30 June 2026 Six months ended 30 June 2025 Wages and salaries 449.3 435.1 Social security contributions and employee assistance costs 95.7 91.1 Pension costs 11.3 9.9 556.3 536.2
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14. Finance income / expense Interest and similar expenses include the net interest expense for pension provisions amounting to € 7.8 million (previous year: € 7.8 million). In addition, the item also includes interest expense from the subsequent measurement of lease liabilities. As was the case as at 31 December 2025, IAS 29 Financial Reporting in Hyperinflationary Economies was applied to KSB Compañía Sudamericana de Bombas S.A., Carapachay (Buenos Aires), Argentina, and KSB- Pompa, Armatür Sanayi ve Ticaret A.S., Ankara, Turkey. The associated net loss from the monetary depreciation of the affected monetary assets and liabilities of these companies to be taken into account is included under other finance expense. 15. Taxes on income This item shows the effective and deferred taxes on income of the companies included in the consolidated financial statements. The tax rate for the first half of 2026 was 31.7 % compared with 33.5 % in the first half of 2025. The reduction in the tax rate was mainly due to tax-exempt income from the remeasurement of the interest in KSB Pumps Arabia Ltd. 16. Earnings after income tax – Non-controlling interests The net profit attributable to non-controlling interests amounts to € 14.9 million (previous year: € 13.9 million) and the net loss attributable to non-controlling interests amounts to € 2.3 million (previous year: € 2.6 million). Further information on the non-controlling interests is provided under Notes No. 5 Equity. 17. Earnings per share Earnings per share are calculated using the weighted average number of shares as the denominator. An additional dividend attributable to preference shareholders of € 0.26 (previous year: € 0.26) per share is assumed for the calculation. Interim Group Management Report Interim Consolidated Financial Statements General Information 34 KSB Group / Half-year Financial Report 2026 € millions Six months ended 30 June 2026 Six months ended 30 June 2025 Finance income 4.2 6.3 Interest and similar income 4.1 6.2 Other finance income 0.0 0.0 Finance expense -13.8 -12.5 Interest and similar expenses -10.7 -9.7 Other finance expense -3.1 -2.8 Income from / expense to investments accounted for using the equity method 0.1 2.2 Finance income / expense -9.6 -4.0 € millions Six months ended 30 June 2026 Six months ended 30 June 2025 Effective taxes 34.0 38.3 Deferred taxes -5.9 -3.4 28.1 34.9 € Six months ended 30 June 2026 Six months ended 30 June 2025 Diluted and basic earnings per ordinary share 27.30 32.86 Diluted and basic earnings per preference share 27.56 33.12
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VI. Further Information on Financial Instruments 1. Financial instruments – Fair values In view of the following explanations, detailed information on the fair values of the financial instruments as at 30 June 2026 is not provided. In line with the assessment provided as at 31 December 2025, it is assumed for the financial assets measured at amortised cost that the fair values correspond to the carrying amounts, given the predominantly short maturities of these financial instruments. This is also the case for all financial liabilities measured at amortised cost, with the exception of non-current financial liabil- ities. There was no significant change from 31 December 2025 in the relation between the carrying amount and fair value of the non-current financial liabilities. 2. Financial risks KSB is exposed to certain financial risks as a conse- quence of its business activities. These risks can be classified into three areas: KSB is firstly exposed to credit risk. Credit risk is defined as the potential default or delays in the receipt of contractually agreed payments. KSB is also exposed to liquidity risk, which is the risk that an entity will be unable to meet its financial obligations, or will be unable to meet them in full. In addition, KSB is exposed to market price risk. The risk of exchange rate or interest rate changes may adversely affect the economic position of the Group. Risks from fluctuations in the prices of financial instruments are not material for KSB. KSB limits all these risks through an appropriate risk management system, defining how these risks are addressed through guidelines and work instructions. In addition, KSB continuously monitors the current risk characteristics and regularly provides the information obtained in this way to the Managing Directors and the Supervisory Board in the form of standardised reports and individual analyses. Interim Group Management Report Interim Consolidated Financial Statements General Information 35 KSB Group / Half-year Financial Report 2026
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VII. Segment Reporting The derivation of the Pumps, Valves and KSB SupremeServ reporting segments (hereinafter also referred to as “Segments”) in accordance with IFRS 8 and their definition in terms of content is unchanged compared with 31 December 2025. KSB continues to take management decisions in this segment structure primarily on the basis of the key performance indicators – order intake, external sales revenue and earnings before finance income / expense and income tax (EBIT). The amounts disclosed below for the individual segments have been established in compliance with the accounting policies of the present interim consolidated financial statements. The order intake by segment presents order intake generated with third parties. The sales revenue by segment presents sales revenue generated with third parties. Earnings before finance income / expense and income tax (EBIT) for each segment also comprises the earnings attributable to non-controlling interests. Disclosures on Segments Pumps Segment Valves Segment KSB SupremeServ Segment Total € millions Six months ended 30 June 2026 Six months ended 30 June 2025 Six months ended 30 June 2026 Six months ended 30 June 2025 Six months ended 30 June 2026 Six months ended 30 June 2025 Six months ended 30 June 2026 Six months ended 30 June 2025 Key indicator Order intake 1,095.4 940.8 213.2 225.4 540.1 532.3 1,848.7 1,698.4 Sales revenue 799.1 775.8 195.8 200.7 476.4 488.4 1,471.4 1,464.9 EBIT 23.8 27.3 -1.7 -3.5 76.2 84.2 98.4 108.0 Income item Remeasurement of interest in KSB Pumps Arabia Ltd. * 10.9 – 1.1 – 4.6 – 16.6 – Expense item Depreciation and amortisation expense -23.9 -23.4 -6.9 -6.3 -20.0 -18.9 -50.8 -48.7 External costs for the migration to SAP S/4HANA ** -6.7 -7.3 -1.5 -1.7 -4.1 -4.4 -12.3 -13.5 * Gains and losses from the remeasurement of interest in KSB Pumps Arabia Ltd. are included in miscellaneous other income under other income. ** The external costs for the transition from the SAP R/3 system to the SAP S/4HANA system are reported as administrative expenses under other expenses. Interim Group Management Report Interim Consolidated Financial Statements General Information 36 KSB Group / Half-year Financial Report 2026
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VIII. Other Disclosures Aggregate purchase obligation Purchase commitments for property, plant and equip- ment were up 26.8 % on the year-end figure in 2025 at € 55.3 million. Related party disclosures Related parties are legal entities or natural persons that have influence over the KSB Group or are subject to control, joint control or significant influence by the KSB Group. Overall, there were no significant changes in the con- tractual basis between the Group and its related parties compared with 31 December 2025. Revenue from the sale of assets and services to joint ventures, associates and to companies not consolidated because of immateriality amounted to € 21.7 million in the first half of 2026 (previous year: € 32.6 million). The decrease is primarily attributable to the first-time full consolidation of KSB Pumps Arabia Ltd. in the first half of 2026. Further information on the pending receivables from and trade payables to related parties is included in Section IV. Balance Sheet Disclosures – Notes No. 3 “Contract assets, trade receivables and other financial and non- financial assets” and in Notes No. 8 “Liabilities”. Auditors KPMG AG Wirtschaftsprüfungsgesellschaft, based in Berlin with an office in Stuttgart, were appointed as auditors and group auditors for the 2026 financial year at the Annual General Meeting of KSB SE & Co. KGaA on 7 May 2026. This half-year financial report has been neither reviewed nor audited in accordance with Section 317 HGB [German Commercial Code]. Events after the Reporting Period There were no events after the reporting date that are of particular significance for the Group’s net assets, finan- cial position and result of operations. German Corporate Governance Code The Managing Directors and the Supervisory Board of KSB SE & Co. KGaA issued the current Statement of Compliance with the recommendations of the Government Commission on the German Corporate Governance Code in accordance with Section 161 AktG [Aktiengesetz – German Public Companies Act] on 10 December 2025. The Statement is accessible to the public at KSB’s web site: ksb.com/en-global > Investor Relations > Corporate Governance > Corporate Governance Statement / Statement of Compliance with the German Corporate Governance Code. Interim Group Management Report Interim Consolidated Financial Statements General Information 37 KSB Group / Half-year Financial Report 2026
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3 General Information 39 Appropriation of the Net Retained Earnings of KSB SE & Co. KGaA 40 Responsibility Statement 41 Contacts 41 Financial Calendar Interim Group Management Report Interim Consolidated Financial Statements General Information 38 KSB Group / Half-year Financial Report 2026
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Appropriation of the Net Retained Earnings of KSB SE & Co. KGaA The Annual General Meeting on 7 May 2026 resolved to appropriate the net retained earnings of of KSB SE & Co. KGaA, Frankenthal, of € 197,131,373.08 as follows: Pursuant to Section 58(4), sentence 2, of the German Public Companies Act [AktG – Aktiengesetz], the claim to the dividend shall be due on the third business day following the resolution adopted by the Annual General Meeting. Interim Group Management Report Interim Consolidated Financial Statements General Information 39 KSB Group / Half-year Financial Report 2026 Appropriation of net retained earnings € Dividend of € 26.50 per ordinary no-par-value share 23,495,297.50 Dividend of € 26.76 per preference no-par-value share 23,139,693.12 Total dividends 46,634,990.62 Carried forward to new account 150,496,382.46 197,131,373.08
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Responsibility Statement To the best of our knowledge, and in accordance with the applicable interim reporting principles, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group during the remainder of the financial year. Frankenthal, 6 August 2026 KSB Management SE The Managing Directors Interim Group Management Report Interim Consolidated Financial Statements General Information 40 KSB Group / Half-year Financial Report 2026
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Contacts Editor KSB SE & Co. KGaA Johann-Klein-Straße 9 67227 Frankenthal, Germany Tel. +49 6233 86-0 Group Information You will find the latest news on the KSB Group at: ksb.com Should you need additional information, please contact: Investor Relations Dieter Pott Tel. +49 6233 86-2615 E-mail: investor-relations@ksb.com Communications Sonja Ayasse Tel. +49 6233 86-3118 E-mail: sonja.ayasse@ksb.com Concept and Design 3st kommunikation GmbH, Mainz KSB Communications, Frankenthal, Germany Photography Maria Stupina, Shutterstock (cover) Financial Calendar 10 November 2026 Quarterly financial report January – September 2026 2 February 2027 Preliminary report on the 2026 financial year 25 March 2027 Full report on the 2026 financial year Financial press conference 11 May 2027 Quarterly financial report January – March 2027 13 May 2027 Annual General Meeting 29 July 2027 Half-year financial report January – June 2027 Interim Group Management Report Interim Consolidated Financial Statements General Information 41 KSB Group / Half-year Financial Report 2026
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KSB SE & Co. KGaA Johann-Klein-Straße 9 67227 Frankenthal, Germany www.ksb.com