Kuehne + Nagel (KNIN) Q3 2025 earnings summary

Executive summary

• Net turnover for January–September 2025 increased 2.7% year-over-year to CHF 18.5 billion, but Q3 net turnover declined 6.8% compared to Q3 2024, and EBIT fell 13% year-over-year due to yield pressure in logistics segments.

• Market share expanded in air logistics and SME segment in sea logistics, despite overall market softness.

• A cost reduction program targeting at least CHF 200 million in annualized savings was launched to address challenging market conditions.

• Partners Group exercised its option to sell its 24.9% stake in Apex, with completion in Q4 2025, increasing ownership to 100% and expected to be EPS accretive.

Financial highlights

• Group EPS declined 18% year-over-year to CHF 6.11, and net earnings for the nine months were CHF 725 million, down from CHF 885 million year-over-year.

• Free cash flow conversion reached 105% in Q3, the first time above 100% since Q3 2022; year-to-date conversion at 66% vs. 33% last year.

• Gross profit for January–September rose 1.1% year-over-year to CHF 6,531 million, with a margin of 35.3%, slightly down from 35.8% last year.

• Cash and cash equivalents at period end were CHF 603 million, down from CHF 926 million a year earlier.

Outlook and guidance

• Recurring EBIT guidance for 2025 set at greater than CHF 1.3 billion, reduced from the previous range of CHF 1.45–1.65 billion, reflecting adverse market conditions and a 5% currency headwind.

• Q4 recurring result expected to be comparable to Q3; no peak season expected in air logistics for Q4, with stable yields anticipated.

• Full run rate of cost savings expected by year-end 2026, fully reflected in Q1 2027.

• Economic growth uncertainty and volatile trade/tariff policies are expected to persist.