Kion cuts 2026 profit outlook to 815–875 million euros as orders fall short
Key Facts
Kion Group cut its 2026 adjusted operating profit forecast to 815–875 million euros in an announcement on Wednesday, 14 October, while also lowering its revenue and free cash flow estimates. The group had previously expected adjusted operating profit of between 880 and 980 million euros, according to its financial disclosure. The company attributed the revision mainly to expected orders in its Industrial Trucks & Services segment failing to materialise during the third quarter. It said in the disclosure that these orders "did not materialise as expected", identifying the business that drove the cut to its annual guidance. It also postponed the expected timing for achieving its medium-term margin targets until after 2027, citing the revised outlook and prevailing market conditions.
Kion now expects annual revenue of between 11,450 and 11,750 million euros, compared with a previous range of 11,525–12,025 million euros. The guidance cut also covered free cash flow, which the group now estimates at 400–500 million euros for the year. Its previous free cash flow estimates ranged between 420 and 540 million euros, according to the guidance table in the disclosure. The company lowered its target range for return on capital employed to 7.8%–8.4% for 2026. That compares with its previous forecast of 8.4%–9.4%, extending the revision to estimates for profitability, liquidity and return on capital alongside sales.
In its Industrial Trucks & Services segment, Kion cut its annual revenue forecast to 8,100–8,300 million euros from a previous range of 8,200–8,500 million euros. It also reduced the segment's adjusted operating profit estimate to 690–740 million euros, compared with 765–835 million euros in its previous guidance. For its Intelligent Automation Solutions segment, the company narrowed its expected revenue range to 3,350–3,450 million euros from 3,325–3,525 million euros previously. The lower end of the automation revenue forecast thus rose while the upper end fell, unlike the cuts to both ends of the range for Industrial Trucks & Services. The group put adjusted operating profit for automation at 230–250 million euros, compared with 230–270 million euros previously, leaving the lower end unchanged.
The guidance revision followed a first half in which group orders declined while revenue rose, according to Kion's statement on its performance for the period. Orders totalled 5.794 billion euros, compared with 6.206 billion euros in the first half of 2025. Revenue, meanwhile, rose 3.5% to 5.687 billion euros from 5.496 billion euros in the corresponding period. The group's profitability also improved during the first half, with its adjusted operating profit margin rising to 7.6%, according to its interim report. The margin had stood at 7.0% a year earlier, meaning the postponement of its medium-term profitability targets followed a recorded improvement in its first-half margin.
The Intelligent Automation Solutions segment recorded first-half revenue growth of 17.6%, according to the group's interim report. Its revenue reached 1,629.2 million euros, compared with 1,385.8 million euros in the same period a year earlier. The company attributed growth in its automation project business to an improved order backlog, which supported the business's year-on-year expansion. The postponed profitability targets include achieving a double-digit adjusted earnings margin before interest and taxes for the group and for each operating segment individually. Kion did not specify an alternative year for achieving those targets after postponing their expected timing until after 2027.
For the third quarter, Kion announced preliminary revenue of about 2,835 million euros, in line with expectations, according to the company's disclosure. Preliminary adjusted operating profit was about 203 million euros, according to results reported by Investing. The website compared that profit with the Vara Research analyst consensus of 211 million euros, putting quarterly profitability below expectations. Kion shares rose about 4% during Wednesday's trading, the day of the announcement, according to Investing's report published that day. The group is scheduled to publish its full third-quarter report on 29 October 2026.