Kuehne+Nagel launches cost reduction programme amid market challenges

Kuehne+Nagel has initiated a comprehensive cost reduction programme aimed at achieving annual savings exceeding CHF 200 million (approximately $222 million). This strategic move comes in response to overcapacity and margin pressures in the logistics sector.

In the first nine months of 2025, the company reported a 3% increase in net turnover, reaching CHF 18.5 billion (approximately $23.27 billion). However, earnings before interest and tax (EBIT) declined by 17% to CHF 1.0 billion (approximately $1.1 billion), and net earnings fell by 17% to CHF 761 million (approximately $958 million). Currency effects negatively impacted EBIT by CHF 14 million (approximately $17.58 million) in the third quarter.

Despite these challenges, Kuehne+Nagel achieved market share gains, particularly in Air Logistics, through targeted investments in logistics services for cloud infrastructure and the perishables market segment. In Sea Logistics, progress was made in the SME market segment. The company is focusing on strategically important routes and remains confident in further expanding its market position.

The company generated a strong free cash flow of CHF 521 million (approximately $589 million), up CHF 209 million (approximately $237 million) compared to the prior year. However, there is a need for action regarding cost development. Kuehne+Nagel has therefore launched a Group-wide cost reduction programme, aiming for annual savings of at least CHF 200 million (approximately $226 million), including structural and sustainable measures. Productivity is to be increased in the long term through process optimisation in central functions and markets, as well as greater use of automation and shared service centres.

Stefan Paul, CEO of Kuehne+Nagel International AG, stated: “Despite very challenging market conditions, Kuehne+Nagel was able to gain market share through targeted investments in key areas. With the launch of group-wide cost reduction measures, we are now taking action to safeguard our cost base. Challenging external factors are forcing us to sustainably and permanently improve our efficiency and performance culture. Keeping high-quality levels of customer service remains a top priority.”

On August 19, 2025, Partners Group exercised its put option to sell its 24.9% ownership stake in Apex. The transaction is expected to be settled in cash during the fourth quarter of 2025, against the recognised redemption liability of CHF 886 million (approximately USD 1.0 billion). The transaction will be financed through available funds and credit lines.

Due to ongoing uncertainties and the impact of the trade war in Q4 2025, Kuehne+Nagel expects EBIT for the full year 2025 to exceed CHF 1.3 billion (approximately USD 1.47 billion).