Kuehne + Nagel International AG

Strong profitability rebound (core “good”): Q3 recurring EBIT up sharply; guidance raised - Recurring EBIT: CHF 435m in Q3, +53% YoY and +14% QoQ. - Nine months: maintained positive earnings momentum; improvement supported by disciplined cost control, Air growth, and recent stronger Sea growth, plus improved Road & Contract Logistics. - 2026 guidance lifted again: recurring EBIT now CHF 1.5–1.6bn (previously lower), i.e. +CHF 150m to the bottom end and +CHF 50m to the top end. - Management framing: guidance increases are the third sequential uplift in 2026; midpoint nearly ~20% above opening March estimates.

Cost program delivering real conversion (surprising/best visibility into drivers) - A cost reduction program introduced a year ago and already running since year-end 2025 has delivered ~CHF 100m savings YTD. - Expected acceleration into Q4 and annualized run-rate ≥ CHF 200m by year-end 2026. - Conversion rate improved materially: - Group conversion rate: 18.2% in Q3 vs 16.9% in Q2 and 13.4% in Q3 last year (like-for-like). - Air + Sea conversion targeted at 35%; combined: 32.3% in Q3 vs 30.2% in Q2 and 22.8% in Q3 last year. - This conversion lift is a key reason why gross profit growth turns into EBIT.

Business momentum: Sea + Air + Road + Contract all contributed (good + opportunity) - Sea Logistics: Q3 volumes +5% YoY and +6% QoQ; market share gains (notably Asia export and transatlantic U.S. recovery). - EBIT: CHF 172m, +55% YoY and +23% QoQ. - Conversion rate: 32% (vs 29% in Q2, 23% prior-year). - Key “outperformance” signal: sequential yield stability/better results (4th consecutive quarter stable or better). - Management suggests yields should remain a reasonable reference for Q4/Q1. - Air Logistics: volumes +10% YoY and +7% QoQ, led by tech sector + general cargo + hard cargo (e-commerce down). - EBIT: CHF 169m, +84% YoY and +10% QoQ. - Conversion rate: 32% (vs 31% Q2 and 23% prior-year). - Investor take-away: Air volume growth is largely share-driven (management estimated ~6–7% share gains vs ~3–4% market). - Road Logistics: EBIT CHF 28m (+40% YoY); net turnover +14% in Q3 (+13% organic). Conversion rate 8% vs 6% prior-year. - Contract Logistics: EBIT CHF 66m, up 29% sequentially, turnover +8% excluding FX; conversion rate 7% vs 6%. Management expects pipeline/implementations to keep supporting growth.