Kapsch TrafficCom – Result for the financial year 2024/25

Highlights

• Business development shows a slight improvement.
• Deconsolidations of several companies reduced revenues to EUR 530 million, EBIT reached EUR 13 million.
• Equity ratio increased to 20%, gearing ratio reduced to 111%.
• Lower revenues and EBIT increase expected for the 2025/26 financial year; additional positive one-time effects possible.

"The financial year we are reporting on today is not comparable with the previous year in terms of figures. Due to the deconsolidations of several companies, we also have a different basis for revenues and earnings than a year ago. Above all, however, we have become more efficient in the execution of our projects, we have significantly more breathing room in terms of liquidity, and we have reviewed our strategy and updated it in line with the developments that have already taken place," says Georg Kapsch, CEO of Kapsch TrafficCom.

Vienna, June 25, 2025 – In the financial year 2024/25, Kapsch TrafficCom was able to consolidate its foundations for the future and recorded a slight improvement in business development. The year was also marked by the deconsolidations of several companies.

The effects of the deconsolidations were clearly visible in the results, with the sale of the South African company TMT in the first quarter reducing EBIT by EUR 7 million. In January 2025, the majority of voting rights and control in the Belarusian company operating the successful tolling project in Belarus were also transferred.

In the previous year, the settlement of the arbitration proceedings regarding the terminated tolling contract in Germany was reflected in EBIT at EUR +79 million. The earnings figures for the financial year 2024/25 are therefore only comparable to a limited extent with the previous year.

Earnings position.

Revenues declined from EUR 539 million to EUR 530 million in the reporting period. Adjusted for the EUR 22 million loss of revenues from the South African TMT and the Belarusian company, the previous year's figure would have been EUR 517 million, representing a calculated increase of 3%.

From a regional perspective, revenues in the EMEA region (Europe, Middle East, Africa) declined by 8%, particularly in connection with the deconsolidations, while Kapsch TrafficCom also recorded a 13% decline in the Asia-Pacific region. By contrast, revenues in the Americas region (North, Central, and South America) increased by 7%.

Operating profit (EBIT) was significantly lower than the previous year's figure of EUR 70 million at EUR 13 million. While several significant one-off effects influenced the result in the previous year, the only significant non-recurring effect in the 2024/25 financial year was the EUR -7 million from the sale of TMT, which had a negative impact on the result. Project-related and estimate-based valuation effects reported as other operating income were considered inherent to operating activities. Margins on construction projects in the US were significantly better in the reporting period than in the previous year, confirming the improvement in performance.

The financial result amounted to EUR -17 million, compared with EUR -30 million in the previous year, with the improvement primarily reflecting the decline in interest expense and the absence of one-time costs from the restructuring of financing.

The net income attributable to shareholders for the period was EUR -7 million, compared to EUR 23 million in the previous year, and earnings per share amounted to EUR -0.48, compared to EUR 1.72.

Segment results for the financial year 2024/25.

The effects of the deconsolidations mentioned above are reflected in both segments in the EMEA region (Europe, Middle East, Africa). The tolling segment contributed 74% to total revenues, while the traffic management segment contributed 26%.

In the tolling segment, revenues increased by 4% from EUR 378 million to EUR 393 million despite the loss of revenues from the Belarusian company. At EUR 12 million, EBIT was significantly below the previous year's figure, which included the effects of the settlement in Germany.

In the traffic management segment, revenues declined by 15% from EUR 161 million to EUR 137 million, primarily due to the sale of TMT. At EUR 0.5 million, EBIT was significantly below the previous year's figure, mainly due to the negative effects of the deconsolidation of TMT at EUR -7 million and the loss of revenue and the resulting contribution to earnings from the previous year.

Financial and asset position.

Free cash flow reached EUR 21 million in the financial year 2024/25, compared with EUR 106 million in the previous year.

The balance sheet showed a significant increase in shares in associated companies and joint ventures on the assets side, partly in connection with the deconsolidation of the company in Belarus, in which Kapsch TrafficCom continues to hold an economic interest. In addition, deferred tax assets increased against the backdrop of loss carryforwards. By contrast, trade receivables and other current assets decreased by EUR 11 million. Cash and cash equivalents rose from EUR 33 million as of March 31, 2024, to EUR 48 million as of the current balance sheet date. On the liabilities side, the agreement of new long-term financing with the company's main banks in March 2025 is particularly reflected in long-term and short-term financial liabilities.

The increase in equity led to an increase in the equity ratio from 19% in the previous year to 20%. Net debt was at EUR 101 million, down from EUR 106 million in the previous year, which also reduced the gearing ratio from 127% to 111%.

Strategic progress.

Kapsch TrafficCom conducted a comprehensive strategy review in the past financial year. This essentially confirmed the approach of continuing to develop the core business in the areas of tolling and traffic management. The increasing importance of urban traffic management and applications for connected vehicles is already reflected in new projects.

Kapsch TrafficCom also further expanded its sustainability management. In addition to expanding its range of products and solutions for sustainable mobility, the sustainability policy also includes reducing the company's own CO₂ footprint. The People Strategy contributes to the dynamic and growth-oriented corporate culture required to achieve this. The non-financial statement for the financial year 2024/25 already complies with the requirements of the European Corporate Sustainability Reporting Directive and has been audited for the first time.

Outlook.

Kapsch TrafficCom expects lower revenues for the 2025/26 financial year due to the deconsolidations of several companies in the previous financial year. EBIT should nevertheless exceed the previous year's figure, with additional positive one-time effects possible.

Against the backdrop of the deconsolidations that have taken place, management currently expects revenues to decline to around EUR 510 million. The high level of order intake and order backlog form a solid basis for further growth. However, due to the long terms of the newly acquired projects, these will only be reflected in revenues in the medium to long term.

Based on current expectations, management anticipates EBIT to increase compared to the previous year. Additional positive one-time effects are possible in the financial year 2025/26. Although Kapsch TrafficCom has already achieved significant efficiency improvements in recent years, costs remain a focus. The medium-term goal is to reduce the net debt to EBITDA ratio to below 1.5x.

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 healthy 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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