Kapsch TrafficCom AG: Result for the first three quarters of 2025/26.

Kapsch TrafficCom – Result for the first three quarters of 2025/26.

Highlights.

• Decline in revenues of 25% to EUR 307 million.
• EBIT increased to EUR 12 million due to the one-time effect from Germany.
• Market environment remained weak in Q3.
• Positive free cash flow and stable balance sheet.
• Outlook for full year 2025/26 adjusted again.

"Due to the current market situation in the tolling market, revenue and, as a result, earnings are well below our expectations. We expect this market weakness to continue for the time being and are further adjusting our costs to this lower level. Despite the difficult market situation, order intake was comparatively good. This makes it all the more important that we do not limit our growth potential for the future," said Georg Kapsch, CEO of Kapsch TrafficCom.

Vienna, February 27, 2026 – The first three quarters of Kapsch TrafficCom's 2025/26 financial year were marked by persistently low revenues, with only a slight improvement in the third quarter. Earnings recorded significant growth in the reporting period due to the special effect from Germany. The contract extension for the operation of the tolling system in Bulgaria in December was a welcome success for the coming years.

Earnings position.

At EUR 307 million, revenue in the first three quarters of the financial year was 25% below the previous year's figure of EUR 411 million. Following the removal of two major projects, part of this decline in revenues had been expected in the current financial year: Around EUR 60 million is related to the termination of the tolling project in the South African province of Gauteng and the deconsolidation of the Belarusian company that operates the tolling project in Belarus.

The further decline reflects the absence of expected projects in almost all regions. Kapsch TrafficCom sees the main reasons for this in the difficult market situation: The tolling market in particular showed a drastic and unexpectedly severe weakness on a global scale. In addition, there were customer-related delays in starts and executions of projects. Furthermore, the Company was not able to win all of the planned projects.

Operating profit (EBIT) amounted to EUR 12 million in the reporting period, compared with EUR 6 million in the same period of the previous year, with the settlement with the Federal Republic of Germany having a particularly positive impact on earnings. Without this earnings effect of EUR 23 million in the first quarter, EBIT would have been negative.

The cost base continues to be steadily adjusted to the low level of revenues. In addition, project risks, particularly in North America, have been reduced to a normal level, as evidenced by increased earnings contributions and new orders in this region. The relocation of the manufacturing facility in Canada led to a prolonged interruption in production in the summer, which was made up for in the third quarter.

Towards the end of the reporting period, invoiced revenue also increased, which will have a positive impact on cash flow in the future. Despite the difficult market situation, order intake was relatively good in the reporting period; Kapsch TrafficCom won a new five-year contract in Bulgaria for the maintenance and operation of the nationwide tolling and e-vignette system. However, the orders will only have an impact on revenues in the coming years.

Exchange rate effects, particularly from the US dollar, weighed on earnings in the first three quarters of financial year 2025/26, with EUR -5 million in EBIT and EUR -4 million in the financial result (previous year: 0 in each case).

At EUR -10 million, the financial result was at the same level as in the previous year. The result for the period attributable to equity holders amounted to EUR 3 million, compared with EUR -7 million in the same period of the previous year, while earnings per share reached EUR 0.19 (previous year: EUR -0.50).

Segment performance.

The main effects of the removal of the projects and the compensation from Germany are evident in the tolling segment in the EMEA region (Europe, Middle East, Africa). In addition, the tolling segment in particular was affected by the weak market worldwide. Its contribution to total revenue in the reporting period was only 70%, with the traffic management segment contributing 30%. In the tolling segment, revenue declined by 31% from EUR 309 million to EUR 215 million, while EBIT rose from EUR 6 million to EUR 13 million. In the traffic management segment, the decline in revenues was significantly lower at -9%, from EUR 102 million to EUR 93 million, with EBIT amounting to EUR -0.9 million after EUR -0.4 million.

From a regional perspective, Kapsch TrafficCom recorded declines in revenues in all reporting regions: 37% in EMEA, 13% in the Americas (North, Central, and South America), and 9% in APAC (Asia-Pacific).

Financial and asset position.

Cash flow from operating activities was balanced in the first three quarters of the reporting period, with net working capital remaining constant overall. Free cash flow amounted to EUR 7 million, compared with EUR 24 million in the same period of the previous year.

The balance sheet remains stable: On the assets side, inventories and contract assets from customer contracts were reduced through proactive working capital management, while trade receivables increased. On the liabilities side, the ongoing reclassification of financial liabilities from long-term to short-term in line with maturities and the special repayment made are evident. In addition, as expected, short-term provisions decreased, particularly in connection with projects in North America.

With a lower balance sheet total, the higher equity led to an increase in the equity ratio from 20% (balance sheet date March 31, 2025) to 23%, while net debt remained stable at EUR 103 million (March 31, 2025: EUR 101 million), and the gearing ratio was 107% compared to 111% on the balance sheet date.

Outlook.

In light of the continuing weak performance, Kapsch TrafficCom again lowered its outlook for the 2025/26 financial year on February 16, 2026. Management now forecasts revenue in the range of around EUR 420 million (previous expectation around EUR 450 million) and EBIT in the range of around EUR 7 million (previous expectation around EUR 25 million).

Kapsch TrafficCom therefore continues to place a strong focus on cost adjustments, although these will not take full effect until the next financial year. In addition, the order backlog of EUR 1.2 billion continues to provide a solid basis for growth, although some larger projects will only be reflected in revenue in the medium to long term.

The “Highlights Report” for the first three quarters of 2025/26 and other materials relating to the results will be available today, expected from 7:35 a.m. (CEST), at: www.kapsch.net/en/ir.

Kapsch TrafficCom is a globally renowned provider of transportation solutions for sustainable mobility with successful projects in more than 50 countries. Innovative solutions in the areas of tolling and traffic management contribute to a healthier world without congestion.

 With one-stop-shop solutions, the Company covers the entire value chain of customers, from components to design and implementation to the operation of systems.

 Kapsch TrafficCom, headquartered in Vienna, has subsidiaries and branches in more than 25 countries and is listed in the Prime Market segment of the Vienna Stock Exchange (ticker symbol: KTCG). In its 2024/25 financial year, more than 3,000 employees generated revenues of EUR 530 million.

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