Kapsch TrafficCom (KTCG) Q1 2025 earnings summary

Executive summary

• Revenues rose 5% year-over-year to €138.9 million in Q1 2024/25, driven by growth in the tolling segment and EMEA/Americas regions.

• EBIT remained negative at €-3.4 million, impacted by €-6.8 million to €-7 million deconsolidation effects in Africa; operational performance would have been positive without these non-operating effects.

• Net working capital and free cash flow improved, with free cash flow turning positive at €0.7 million compared to €-15.9 million a year ago.

• Result attributable to equity holders declined to €-9.9 million from €-5.9 million year-over-year, mainly due to one-off deconsolidation effects.

Financial highlights

• Revenue: €138.9m (+5.2% year-over-year); EBIT: €-3.4m (vs. €-3.3m); EBIT margin: -2.4% (+0.1pp).

• Net debt increased to €110.3m (+4.0% sequentially); equity ratio improved to 19.9% (+1.1pp).

• Free cash flow positive at €0.7m; total assets decreased to €431.7m (-2.7% sequentially).

• EPS: €-0.69 (vs. €-0.45 year-over-year).

• EBITDA: €0.7m (down 52% year-over-year).

Outlook and guidance

• Revenue growth expected to exceed average market growth of 7.5% for 2024–2030.

• Slight improvement in adjusted EBIT anticipated for FY 2024/25.

• Continued focus on cost control, liquidity management, and reducing net debt/EBITDA below 3.0x long-term.