German port logistics group HHLA has cut its earnings forecast for the fiscal year ending December 2026. Automation works and railway infrastructure upgrades are affecting operations, with container handling and transport volumes expected to fall short of plan.
German port logistics group HHLA announced that it had cut its earnings forecast for the fiscal year ending December 2026 from its previous outlook. The company said the main reason was that large-scale automation works at container terminals in the Port of Hamburg, together with railway infrastructure upgrades, were having a greater-than-expected impact on operations. The effects of bad weather at the beginning of the year are also not expected to be fully recovered within the fiscal year. As a result, handling and transport volumes in the port segment are expected to be revised downward.
The port logistics segment’s handling volume outlook was revised from “substantial growth” to “slightly below the previous year,” while the transport volume outlook was changed from “substantial growth” to “slight growth.” Although segment revenue is still expected to increase substantially year on year, the projected growth rate has been lowered, and EBIT was cut from the previous forecast of €160 million−€180 million to €135 million−€155 million.
The group’s EBIT forecast was lowered from €175 million−€195 million to €150 million−€170 million. The company also said that while automation works and railway network upgrades are progressing, reduced handling capacity during the construction period is weighing on current earnings.