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

Highlights

• Revenues down 28% year-on-year to EUR 100 million, mainly due to the removal of two major operation projects and revenue deferrals.
• Settlement agreement with the Federal Republic of Germany, positive effects on liquidity and net debt included in Q2 only.
• EBIT increases to EUR 22 million, reflecting earnings from Germany and efficient cost management.
• Major progress made on projects and new projects secured.
• Outlook for the full year 2025/26: decline in revenues, but increase in EBIT.

Vienna, August 20, 2025 – Kapsch TrafficCom recorded a significant decline in revenues in the first quarter of the financial year 2025/26 compared to the same quarter of the previous year. The associated decline in earnings was limited by efficient cost management, and the balance sheet shows a strengthened foundation. In addition, the company successfully brought several implementation projects into operation and secured new projects. However, the reporting quarter was particularly impacted by the settlement of the second arbitration proceedings in connection with the passenger vehicle toll in Germany.

At the end of June, a settlement agreement was reached with the Federal Republic of Germany in connection with the termination of the contract for the automatic control of an infrastructure charge (“passenger vehicle toll”) in 2019. The agreed payment of around EUR 27 million to the subsidiary MTS Maut & Telematik Services GmbH was made in July after the end of the reporting quarter. The cash inflow is therefore not yet included in the figures presented, but the effect on earnings is already apparent.

Earnings position.

The revenue and earnings performance of the Kapsch TrafficCom Group was influenced by two changes relating to major projects compared with the previous financial year: In January 2025, Kapsch TrafficCom relinquished its majority stake and control of its Belarusian subsidiary, which operates the tolling system in Belarus. The system remains in operation, but Kapsch TrafficCom no longer consolidates the revenues. In addition, the tolling project in the South African province of Gauteng ended in March 2025. Both projects and companies made significant contributions to revenues and earnings in the previous year.

In the first quarter of 2025/26, revenues amounted to EUR 100 million, down 28% compared to the previous year’s figure of EUR 139 million. This decline of EUR 39 million reflects roughly half the loss of revenues from the two major projects mentioned above and half fluctuations inherent in the nature of the project business.

The operating result (EBIT) reached EUR 22 million, compared with EUR -3 million in the same quarter of the previous year. While deconsolidation effects of EUR -7 million weighed on EBIT in the previous year, the result in the first quarter of 2025/26 was influenced by the following factors:

• The income from Germany is included in the other operating income in the amount of EUR 23 million.
• The result from associated companies and joint ventures includes, among other things, the share of earnings of the deconsolidated Belarusian company.
• Expenses declined significantly. This is related to the lower revenues and the deconsolidation of companies as well as the resulting cost savings, but also to the consistent cost management. It confirms that Kapsch TrafficCom is able to control its cost level well and implement projects more efficiently than in the past.

The financial result declined from EUR -3 million to EUR -9 million due to negative foreign currency effects, particularly from the US dollar. The net income attributable to equity holders turned positive, from EUR -10 million in the first quarter of the previous year to EUR 10 million. Earnings per share amounted to EUR 0.72 (previous year: EUR -0.69).

Segment performance.

Both the removal of projects and the income from Germany affected the tolling segment in the EMEA region (Europe, Middle East, Africa). Against this backdrop, the tolling segment contributed 73% to total revenues, while the traffic management segment contributed 27%. Revenues in the tolling segment declined by 29% from EUR 103 million to EUR 74 million, while EBIT reflected the positive factors and rose significantly from EUR 3 million to EUR 20 million. Revenues in the traffic management segment also declined, namely by 25% from EUR 36 million in the previous year to EUR 27 million. In the previous year, deconsolidation effects had a negative impact on EBIT, which was after EUR -7 million positive at EUR 1 million in the quarter under review.

From a regional perspective, Kapsch TrafficCom recorded declines in revenues in all business regions: in the EMEA region by 34%, in the Americas region (North, Central, and South America) by 21%, and in the APAC region (Asia-Pacific) by 28%.

Financial and asset position.

Cash flow from operating activities amounted to EUR -21 million, compared with EUR 4 million in the same quarter of the previous year. The main factors influencing this were the current progress of projects and the change in net working capital, in particular the reduction in trade payables. Free cash flow amounted to EUR  -18 million, compared with EUR 1 million in the previous year.

The balance sheet developed positively in all respects: on the assets side, in addition to project developments, the claim against the Federal Republic of Germany is also shown, while on the liabilities side, current liabilities were significantly reduced.

Total assets decreased from EUR 454 million as of March 31, 2025, to EUR 435 million. As equity rose at the same time, the equity ratio increased from 20% to 24%. Net debt increased from EUR 101 million to EUR 126 million due to the reduction in liabilities and the resulting decline in liquidity, causing the debt ratio to rise from 111% to 120%. The cash inflow from Germany did not occur until July and will have a positive impact on liquidity and net debt in the second quarter.

Further developments.

At the end of June, Kapsch TrafficCom published its sustainability statement, which already fully complies with the European reporting standards that will apply in the future and has been audited by an external auditor. It contains detailed information on strategies, measures, targets, and key figures used to manage these issues in a focused manner.

The company also achieved significant milestones in its project work: A nationwide traffic signal project in Sweden, a tunnel management system in Brazil, a tunnel system and a Connected Vehicles (CV) project in the US, the first phase of a major highway project with Cooperative Intelligent Transport Systems (C-ITS) in Germany, the new Swiss truck tolling system, and a tolling system in Norway were all successfully put into operation. Kapsch TrafficCom won significant new projects in Sharjah in the Middle East (tunnel management) and in the US state of New York (operation of two traffic management centers), among others.

Outlook.

For the 2025/26 financial year, Kapsch TrafficCom expects lower revenues than in the previous year due to deconsolidations of several companies in the past financial year. However, EBIT will remain above the previous year’s level.

From today’s perspective, management continues to expect a decline in revenues to approximately EUR 510 million. The operating result (EBIT) is expected to be in the range of around EUR 45 million, taking into account the cash inflow from the arbitration proceedings with the Federal Republic of Germany, with additional positive one-time effects possible in the course of the financial year.

The report on the first quarter of 2025/26 as well as further materials on the result are scheduled to be available today, from 7:35 a.m. (CET), at: www.kapsch.net/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 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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