Kuehne + Nagel (KNIN) Q4 2025 earnings summary

Executive summary

• Maintained global leadership in sea and air freight, achieving market share gains in Air Logistics and SME sea logistics despite weak demand and overcapacity.

• Comprehensive cost reduction programme fully implemented, targeting at least CHF 200 million in annualised savings by end of 2025.

• EPS fell 25% year-over-year, or 15% excluding non-recurring items and currency headwinds.

• Strategic focus on growth in hyperscaler, healthcare, semiconductor, and cloud infrastructure sectors.

• Expanded business with small and medium-sized customers, especially in Sea Logistics, now accounting for over half of volumes.

Financial highlights

• Net turnover CHF 24.5 billion, down 1% year-over-year; gross profit CHF 8.8 billion, up 2%.

• Recurring EBIT CHF 1.4 billion, down 14–17% year-over-year; EPS CHF 7.43, down 25%.

• Free cash flow CHF 917 million, up 48% from 2024; Q4 free cash flow conversion 147%, full-year 86%.

• Dividend proposal of CHF 6.00 per share for 2025, with a payout ratio of 81%.

• Significant FX headwinds impacted gross profit (CHF 326m) and EBIT (CHF 54m).

Outlook and guidance

• 2026 recurring group EBIT guidance set at CHF 1.2–1.4 billion, reflecting a 5% currency headwind.

• Cost savings to ramp up in 2026, with net CHF 100 million impact expected.

• No material AI productivity gains factored into 2026 guidance; material impact expected from 2027.

• Effective tax rate for 2026 expected at approximately 25%.

• Market demand for sea and airfreight expected to grow in line with global GDP.