Kuehne + Nagel (KNIN) Q2 2026 earnings summary

Executive summary

• Recurring EBIT in Q2 2026 rose to CHF 381 million, up 6% year-over-year and 24% sequentially, driven by strong Air Logistics volume growth and disciplined cost control.

• Net turnover for H1 2026 was CHF 12.2 billion, down 2% year-over-year, with Q2 net turnover up 8% to CHF 6.6 billion; gross profit for H1 was CHF 4.4 billion, stable in constant currency.

• Recurring EBIT for H1 2026 was CHF 689 million, a 3% decrease year-over-year, excluding one-off items.

• Cost reduction program delivered CHF 50 million in H1 savings, with annualized run rate expected to reach CHF 200 million by year-end 2026.

• AI-driven productivity initiatives and efficiency improvements are underway, supporting EBIT momentum.

Financial highlights

• Q2 recurring EBIT: CHF 381 million (+6% YoY, +24% QoQ); group conversion rate: 16.9%–17%.

• Gross profit margin for H1 2026 was 35.7%; EBITDA margin at 9.5%; Q2 EBITDA CHF 596 million (+5.3% YoY).

• Free cash flow in Q2: CHF 116 million; H1 free cash flow CHF 310 million (+5% YoY); cash conversion rate at 28%.

• Net working capital increased to over CHF 1.6 billion, with intensity declining to 5.5% by mid-year.

• Net earnings attributable to shareholders were CHF 524 million for H1 2026, down 6% YoY.

Outlook and guidance

• Full-year 2026 recurring EBIT guidance raised to CHF 1.35–1.55 billion, reflecting strong H1 momentum and positive outlook for H2.

• Cost reduction program on track for CHF 200 million annualized savings by year-end 2026.

• AI integration expected to deliver at least 5% productivity gains and CHF 100–150 million EBIT impact by end of 2027.

• Full-year FX translation headwind estimated at up to 5%.

• Stable to improving yields anticipated in Sea and Air Logistics; positive volume outlook for Q3 and Q4.