KION Group AG lowered its full-year 2026 guidance after reporting third-quarter results on October 29, citing persistent weakness in industrial truck orders offset by strong automation business growth.
The German warehouse equipment company reported third-quarter revenue up 5% to €2.8 billion and adjusted EBIT up 7% to €203 million, yielding a 7.2% margin. Group-level order intake reached €2.7 billion, down 1% year-over-year. Free cash flow totaled €99 million, down €132 million from the prior year due to merger and acquisition spending.
KION shares fell 4.08% to $9.17 following the earnings release, trading near the bottom of its 52-week range of $9.13 to $20.54.
The Industrial Trucks & Services segment showed revenue of €1,955 million, up just 1%, with adjusted EBIT falling 4% to €163 million as margin contracted 40 basis points to 8.3%. Management attributed pressure to lower capacity utilization and adverse currency effects. Unit order intake of 68,400 trucks rose 13% year-over-year, but new truck order intake in euro terms declined 9% due to weak value mix, particularly in European markets.
The Intelligent Automation Solutions segment delivered robust results. IAS revenue climbed 16% to €890 million, with adjusted EBIT surging 39% to €66 million and margin expanding 120 basis points to 7.4%. Pure-play e-commerce orders more than doubled year-over-year and accounted for 61% of Business Solutions orders.
Net income declined 15% to €102 million, primarily due to an effective tax rate of 32% compared to 16% in the prior year, when the rate had benefited from a German government resolution to lower the federal corporate tax rate from 2028 onward.
KION narrowed full-year 2026 revenue guidance to €11,450 to €11,750 million from €11,525 to €12,025 million. Adjusted EBIT guidance fell to €815 to €875 million from €880 to €980 million. Free cash flow guidance was slightly reduced to €400 to €500 million from €420 to €540 million.
For ITS, the company lowered revenue guidance to €8,100 to €8,300 million with adjusted EBIT expected between €690 and €740 million. IAS guidance remained relatively stable, with revenue projected at €3,350 to €3,450 million and adjusted EBIT of €230 to €250 million.
Net financial debt stood at €1,196 million as of September 30, 2026, with a leverage ratio of 0.6x. The company maintained €1,784 million in available liquidity, comprising €398 million in cash and €1,386 million in undrawn revolving credit facilities.
Investors tracking KION should monitor whether fourth-quarter order intake stabilizes in European truck markets and whether IAS growth continues to offset ITS margin pressures.