Kapsch TrafficCom (KTCG) Q3 2026 earnings summary

Executive summary

• Revenue for Q1–Q3 2025/26 declined by 25% year-over-year to €307mn, mainly due to the removal of major tolling projects and a weak market environment.

• EBIT increased to €12mn, driven by a one-time settlement effect from Germany; without this, EBIT would have been negative.

• Cost base was adjusted to align with lower revenue, with ongoing adjustments expected to have full effect next year.

• Market environment remained weak, especially in the tolling segment, with customer delays and missed project wins.

• Order intake was comparatively good, including a new five-year contract in Bulgaria, but revenue impact will be seen in future periods.

Financial highlights

• Revenue: €307.4mn (–25.1% year-over-year); prior year: €410.6mn.

• EBIT: €12.4mn (>100% increase); prior year: €5.9mn; EBIT margin: 4.0% (+2.6pp); prior year: 1.4%.

• Result attributable to equity holders: €2.7mn; prior year: –€7.1mn.

• Earnings per share (EPS) improved to €0.19 from –€0.50 year-over-year.

• Free cash flow: €7mn–€7.5mn (–68.5% year-over-year); prior year: €23.8mn–€24mn.

Outlook and guidance

• Full-year 2025/26 revenue expected around €420mn, EBIT around €7mn, including the Germany settlement income; both figures were lowered from previous guidance.

• Continued focus on cost adjustments to match the lower revenue base, with full effects expected next year.

• Order backlog of €1.2bn provides a foundation for future growth, but major projects will impact revenue in the medium to long term.