Kuehne + Nagel (KNIN) Q1 2026 earnings summary

Executive summary

• Recurring EBIT for Q1 2026 reached CHF 308 million, exceeding guidance despite a 17% year-over-year decline, driven by cost reductions and robust performance in Air, Road, and Contract Logistics.

• Net turnover declined 11.5% year-over-year to CHF 5.6 billion, while gross profit margin improved to 37.7%.

• Free cash flow increased to CHF 194 million, supported by real estate disposal proceeds and cost-saving measures.

• Cost management offset volume impacts from Middle East conflict, with annualized gross savings of at least CHF 200 million expected by year-end 2026.

• Comprehensive income rose to CHF 289 million, driven by positive FX differences.

Financial highlights

• Recurring EBIT: CHF 308 million in Q1 2026, up from guidance; Group EBIT down 17% year-over-year.

• Free cash flow: CHF 194 million, including CHF 105 million from real estate sale; underlying free cash flow CHF 89 million.

• EBITDA margin stable at 10.0%; cash and cash equivalents at CHF 749 million at quarter-end.

• Net debt (excluding capitalized leases) was CHF 555 million; repayment of lease liabilities totaled CHF 161 million.

• Gross profit/net turnover at 37.7%; EBIT/gross profit conversion rate at 16.3%.

Outlook and guidance

• Recurring EBIT guidance for FY 2026 raised to CHF 1.25–1.40 billion, up from CHF 1.2–1.4 billion.

• Cost reduction program expected to yield at least CHF 100 million in gross savings in 2026.

• Q2 EBIT expected to exceed Q1, driven by higher service intensity amid supply chain disruption.

• Full-year effective tax rate projected at 25%; currency translation headwind of 5% anticipated.

• No significant negative impact expected from Middle East conflict; stable or slightly higher market share assumed.