Kuehne + Nagel launches global cost-reduction initiative

In response to an increasingly strained market environment defined by overcapacity and margin pressure, the Kühne + Nagel Group has announced a comprehensive cost-reduction programme designed to secure its competitiveness and profitability going forward

In the first nine months of 2025, the Group achieved a net turnover of CHF 18.5 billion (approx. US$23.3bn) and an EBIT of CHF 1.0 billion (approx. US$1.3bn). Earnings amounted to CHF 761 million (approx. US$960mn). Currency effects in Q3 alone weighed on EBIT by CHF 14 million (approx. US$18mn).

Despite the difficult environment, Kühne + Nagel made notable gains in market share, especially in Air Logistics, driven by targeted investments in services for cloud-infrastructure and perishables. In Sea Logistics, the company strengthened its position in the SME segment while focusing on strategically important routes. Free cash flow reached CHF 521 million (approx. US$ 657mn), up CHF 209 million from the prior year.

However, management acknowledges that cost actions are now essential. The Group-wide cost-reduction initiative aims to deliver annual savings of at least CHF 200 million (approx. US$252mn) through structural and sustainable measures. Key elements include process optimisation in central functions and geographic markets, increased automation and the introduction of shared service centres.

Stefan Paul, CEO of Kühne + Nagel International AG, commented, “Despite very challenging market conditions, Kühne + 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.”

Additional corporate news: On 19 August 2025, Partners Group exercised its put option to sell its 24.9 % ownership stake in APEX International Corporation. The transaction, expected to settle in cash during Q4 2025, is recognised against a redemption liability of CHF 886 million (approx. US$1.12bn). The deal will be funded through available funds and credit lines.

Looking ahead, the Group anticipates full-year 2025 EBIT of more than CHF 1.3 billion (approx. US$1.63bn), amid continuing external uncertainties and the impact of the trade war.