Kuehne + Nagel (KNIN) Q1 2025 earnings summary

Executive summary

• Net turnover rose 15% year-over-year to CHF 6.3 billion, with organic growth of 11%.

• Gross profit increased 8% to CHF 2.2 billion, and EBIT grew 7% to CHF 402 million.

• Achieved 8% year-over-year gross profit growth and 7% EBIT uplift in Q1 2025, driven by market share gains and improved yields.

• Free cash conversion rate reached 55%, well above historical Q1 averages, supported by working capital improvements.

• Volume growth exceeded market in both Sea and Air Logistics, with market share gains and yield expansion.

Financial highlights

• Net turnover: CHF 6,330 million (+14.9% y/y); gross profit: CHF 2,237 million (+7.8% y/y).

• EBIT: CHF 402 million (+6.9% y/y); EBITDA: CHF 627 million (+8.9% y/y).

• EPS grew 6% year-over-year (4% organic), reaching CHF 2.45.

• Free cash conversion at 55%, a significant improvement from -32% last year.

• Cash and cash equivalents at CHF 800 million as of March 31, 2025.

Outlook and guidance

• 2025 EBIT guidance unchanged at CHF 1,500–1,750 million, with effective tax rate ~25%.

• Guidance for 2025 EBIT range remains unchanged due to high and fluctuating uncertainty.

• Management notes greater uncertainty due to global economic developments and potential decline in gross profit yields if supply chain disruptions ease.

• Anticipate strong annualized free cash flow unless there are major spikes in freight rates or demand.

• No significant seasonality expected; management continues to monitor supply chain disruptions and integration of recent acquisitions.