Kapsch TrafficCom Nine-Month Results Reflect Market Slowdown but Show Stable Financial Position and Strong Order Backlog

Kapsch TrafficCom Nine-Month Results Reflect Market Slowdown but Show Stable Financial Position and Strong Order Backlog

(IN BRIEF) Kapsch TrafficCom reported a 25% decline in revenue to EUR 307 million for the first three quarters of the 2025/26 financial year due to weak global tolling market conditions, project delays, and the removal of major projects. Despite lower revenues, EBIT improved to EUR 12 million mainly due to a one-time settlement effect from Germany, while the company returned to profitability with a net result of EUR 3 million. The tolling segment saw the largest revenue decline, while traffic management remained relatively stable. Free cash flow remained positive and the balance sheet stayed solid, supported by improved equity levels and stable net debt. The company extended its tolling contract in Bulgaria and maintained a strong order backlog, but lowered its full-year outlook due to continuing market weakness and delayed project execution.

(PRESS RELEASE) VIENNA, 27-Feb-2026 — /EuropaWire/ — Kapsch TrafficCom reported a challenging performance for the first three quarters of its 2025/26 financial year, with revenues declining significantly amid a weak global tolling market, while earnings improved due to a one-time effect linked to Germany. Revenue for the reporting period totaled EUR 307 million, representing a 25% decrease compared with EUR 411 million in the same period of the previous year. Despite the revenue decline, operating profit (EBIT) rose to EUR 12 million from EUR 6 million a year earlier, largely supported by a EUR 23 million settlement effect recorded in the first quarter.

The company’s financial results reflected the removal of two major projects from the revenue base, including the termination of the tolling project in Gauteng, South Africa, and the deconsolidation of the Belarusian tolling business. These changes accounted for approximately EUR 60 million of the decline. Additional pressure came from delays in project launches and implementation, a slowdown in project awards across multiple regions, and continued weakness in the global tolling market.

Kapsch TrafficCom noted that revenue conditions remained subdued during the third quarter, with only modest improvement. The company continues to adjust its cost structure to match the lower revenue environment while aiming to preserve long-term growth potential. CEO Georg Kapsch emphasized that although revenues and earnings remain below expectations, order intake has been comparatively strong, reinforcing the importance of maintaining future growth capacity.

The company recorded a net profit attributable to equity holders of EUR 3 million, compared with a loss of EUR 7 million in the prior-year period. Earnings per share reached EUR 0.19, improving from EUR -0.50. Exchange rate movements, particularly involving the US dollar, negatively affected results, reducing EBIT by EUR 5 million and financial results by EUR 4 million.

Within business segments, the tolling division was most affected by market weakness. Tolling revenues declined by 31% to EUR 215 million, although EBIT improved to EUR 13 million. The traffic management segment proved more resilient, with revenues falling 9% to EUR 93 million and EBIT slightly negative at EUR -0.9 million.

Regionally, revenues declined across all markets. The EMEA region experienced the steepest drop at 37%, followed by a 13% decline in the Americas and a 9% decrease in the Asia-Pacific region. Despite these declines, the extension of the nationwide tolling and e-vignette system contract in Bulgaria for an additional five years strengthened the company’s long-term outlook.

Cash flow from operating activities remained stable during the period, while free cash flow totaled EUR 7 million. The balance sheet remained solid, supported by proactive working capital management that reduced inventories and contract assets. Equity increased, improving the equity ratio to 23%, while net debt remained stable at EUR 103 million.

Looking ahead, Kapsch TrafficCom revised its full-year outlook downward in February 2026 to reflect the ongoing market weakness. The company now expects revenues of approximately EUR 420 million and EBIT of around EUR 7 million. Management continues to focus on cost adjustments, although the full impact of these measures is expected in the next financial year. An order backlog of EUR 1.2 billion provides a foundation for future growth, even though some larger projects will only contribute to revenues over the medium to long term.

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.

Media contact:

Sandra Bijelic
Head of Corporate Communications
Kapsch TrafficCom AG
Am Europlatz 2, 1120 Vienna, Austria
sandra.bijelic@kapsch.net

Investor Contact

Marcus Handl, Teresa Hartlieb
Investor Relations Officer, Investor Relations & ESG Manager
Kapsch TrafficCom AG
Am Europlatz 2, 1120 Vienna, Austria
+43 50811 1122
IR.kapschtraffic@kapsch.net

SOURCE: Kapsch TrafficCom