KION cuts 2026 earnings outlook to €815–875 million as truck orders weaken
Key Facts
KION Group cut its 2026 outlook, setting adjusted earnings before interest and taxes at €815–875 million, down from its previous forecast of €880 to €980 million. The company announced the revision on October 14, before publishing its third-quarter results on October 29, based on preliminary results and order performance during the quarter. It also narrowed its full-year revenue range to €11,450–€11,750 million from €11,525–€12,025 million. KION said the adjustment was mainly due to order intake in the industrial trucks and services segment falling short of expectations. The cut came despite year-on-year growth in third-quarter revenue and adjusted earnings.
In the third quarter, group revenue rose 4.8% to €2,834.7 million, compared with €2,704.0 million a year earlier. Adjusted operating profit increased 6.5% to €202.9 million from €190.5 million, while the margin improved to 7.2% from 7.0%. But order intake fell 0.9% to €2,651.0 million, versus €2,675.9 million in the year-earlier period. Investing.com reported that adjusted earnings came in below the consensus estimate of €211 million, while the 7.2% margin was also below the 7.4% estimate. It added that actual orders were close to €2.65 billion, compared with consensus of €2.69 billion.
The two operating segments delivered sharply divergent performances. Revenue in the Smart Automation segment rose 15.8% to €890.2 million, while adjusted operating profit increased 38.8% to €66.1 million from €47.6 million a year earlier. In the Industrial Trucks & Services segment, revenue grew 0.6% to €1,955 million, but adjusted operating profit fell 4.4% to €163.1 million from €170.6 million. KION said orders in the segment fell short of expectations during the quarter, the main reason for revising its guidance. Smart Automation’s growth therefore did not offset weaker orders and profitability in the truck segment.
In the first nine months, KION revenue rose 3.9% to €8,522.0 million, and adjusted operating profit increased 9.9% to €632.5 million. By contrast, order intake fell 4.9% to €8,445.0 million from €8,882.0 million in the same period of 2025. Group net income was €309.1 million, compared with €167.1 million a year earlier; the company said the prior-year comparison was heavily affected by one-off expenses related to its efficiency program. The company said improved Smart Automation earnings over the nine months reflected a significant increase in gross profit from project business, while the segment’s services contribution was slightly below the high level recorded a year earlier. Chief Executive Rob Smith said the industrial trucks and services business in the Asia-Pacific region faced direct competition from Chinese companies and did not participate in strong market growth in Europe, the Middle East and Africa.
Pressure also extended to cash flow and the full-year outlook. Free cash flow was €98.9 million in the third quarter, compared with €230.9 million a year earlier, and totaled €121.1 million in the first nine months against €392.8 million. KION cut its 2026 free cash flow forecast to €400–€500 million from €420–€540 million. It also lowered its return on capital employed outlook to 7.8%–8.4% from 8.4%–9.4%. The revisions broaden the outlook cut to include liquidity and returns on capital, alongside revenue and earnings.
KION said it does not expect to reach its target of an adjusted operating margin of 10% or more for the group and its two operating segments until after 2027. According to its financial calendar, the company is scheduled to publish its 2026 annual report on March 4, 2027. In the first half, the company reported revenue growth of 3.5% to €5.687 billion, while orders fell to €5.794 billion from €6.206 billion. The chief executive at the time said Smart Automation performed well despite economic and geopolitical uncertainty. The nine-month results put the latest revision in the context of a continuing divergence between revenue and earnings growth on one hand and weak orders on the other.