Kuehne + Nagel International AG

Q2 recurring EBIT was CHF 381 million, up 6% year over year and 24% sequentially. Group recurring EPS improved 6% year over year, or 11% excluding currency headwinds. Sea Logistics EBIT was CHF 140 million, up 24% quarter over quarter and down 6% year over year excluding currency effects; Air Logistics EBIT was CHF 154 million, up 39% quarter over quarter and 42% year over year excluding currency headwinds; Road Logistics EBIT was CHF 36 million, up 29% year over year on an organic basis; Contract Logistics recurring EBIT was CHF 51 million, down 14% sequentially and 9% year over year excluding currency effects. Headline free cash flow in Q2 was CHF 116 million, including CHF 40 million of disposal proceeds. For 2026, management raised recurring EBIT guidance to CHF 1.35 billion to CHF 1.55 billion, up by CHF 100 million at the low end and CHF 150 million at the high end; the cost program target remains more than CHF 200 million of gross annualized savings and more than CHF 120 million of impact in 2026. Management also said net working capital intensity was 5.5% at midyear, back within the 4.5% to 5.5% corridor.

Stefan Paul framed the quarter as evidence that volume growth and disciplined cost control are improving profitability across the group. He said Air Logistics is currently the key profit driver, Sea Logistics should improve further as the year progresses, and Road and Contract Logistics are benefiting from market share gains and new customer wins. His tone was constructive and confident, especially on the second half, but he acknowledged uncertainty in global macro conditions and trade.

Markus Blanka-Graff emphasized that about CHF 50 million of cost savings were delivered in the first half, with a faster run-rate expected into Q4 and an annualized gross savings target of more than CHF 200 million by year-end 2026. He said Q2 free cash flow was CHF 116 million including CHF 40 million of asset-disposal proceeds, while core working capital increased by CHF 97 million due mainly to air logistics growth and dedicated freighter activity. He also noted net working capital intensity improved to 5.5%, foreign exchange was a 6% headwind in Q2, the tax rate assumption remains 25%, and the company still prefers a small net cash position.

Analysts pressed on Contract Logistics phasing, ocean demand/yields, air freight sustainability, AI monetization, and the rumored Apex stake disposal. Management said Contract Logistics will likely see start-up costs into Q3 with first positive P&L impact in Q4, while the ocean market should stay positive in volumes into Q3/Q4 and yields are expected to remain stable to slightly higher. On AI, management said the CHF 100 million to CHF 150 million EBIT impact is a gross estimate that should materialize by end-2027, and on Apex they declined to comment on any disposal rumors. They also said hyperscaler demand and other growth areas are supporting air and contract logistics, but would not quantify the mix.