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Kion Group Narrows 2026 Guidance on Weaker European Economic Outlook
Summary
The German warehouse logistics firm tightened its revenue and profit forecasts for 2026, pointing to a delayed macroeconomic recovery in Europe impacting its industrial trucks division.
Kion Group AG tightened its full-year 2026 financial guidance on Thursday, signaling a more cautious view on Europe's economic recovery, even as its second-quarter results met market expectations. The intralogistics specialist attributed the revision to a weaker outlook for its core industrial trucks business.
Updated Full-Year Outlook
The company narrowed its forecast for the full year, reflecting uncertainty in the second half. Kion now projects:
- Revenue between €11.53 billion and €12 billion, compared to a consensus estimate of €11.7 billion.
- Adjusted EBIT in a range of €880 million to €980 million, with the midpoint slightly ahead of consensus.
- Free cash flow between €420 million and €540 million.
The revised outlook for its Industrial Trucks & Services (ITS) division is based on reduced expectations for a macroeconomic rebound in Europe. This headwind is partially offset by strong execution and the completion of legacy projects in its Supply Chain Solutions (SCS) segment.
Second-Quarter Performance
AdFor the second quarter, Kion's results were broadly in line with analyst estimates. The company reported revenue of €2.916 billion and adjusted EBIT of €224 million, representing a margin of 7.7%. Total order intake for the period was €2.809 billion.
The two main divisions showed divergent trends. The ITS segment saw revenue grow 2% year-over-year, but orders fell by 6%, weighed down by a 15% decline in new business. In contrast, the SCS segment's revenue surged 23%, driven by a strong prior-year order book. SCS orders dropped 40% against a difficult prior-year comparison when e-commerce related business was significantly higher.
Financial Position and Market Impact
Kion's free cash flow for the quarter was a negative €25 million, which was consistent with consensus expectations. The company's net operating debt leverage stood at 1.2x, a slight increase from the previous quarter.
The updated guidance suggests to investors that while the high-margin supply chain and automation business provides some resilience, the company's largest segment remains sensitive to the broader European industrial cycle. A delayed recovery in this key market presents a significant headwind for near-term growth.
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