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Kapsch
Kapsch
Kapsch
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The Kapsch Group, headquartered in Vienna, Austria, is an international corporation specializing in telematics, information technology and telecommunication.

Key Information

History and operations

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In September 1892, Johann Kapsch (1845–1921) founded a precision engineering workshop in Vienna, with the state-owned and operated Post- und Telegraphenverwaltung (Mailing- and Telegraph-Administration) among its first clients. In 1916, the company changed its name to Telefon- und Telegrafen-Fabriks-Aktiengesellschaft Kapsch & Söhne in Wien ("Telephone and Telegraph Manufacturing Stock Company Kapsch & Sons in Vienna"). During World War I, the company produced night sights for the Austrian Model 1895 rifle and carbine.[2] With the growing number of inventions, Kapsch expanded its product range by adding the manufacturing of capacitors, tin tubes and dry batteries. In 1923, Kapsch started to manufacture radios, with the first TV sets following in 1955. After the Second World War, Kapsch was heavily involved in rebuilding the Austrian telephone network.[3][4]

In 1978, the company focused on digital communications systems. This was followed by the entry into the mobile phones market in 1985. That same year, Kapsch was involved in the introduction of the digital telephone infrastructure in Austria and Hungary.

Between 1989 and 1999, the company founded international subsidiaries and representations in Hungary, Czech Republic, Poland, Slovakia, Ukraine, Russia, Slovenia, and Croatia.

In 1994, Europe's trains were equipped with train radio systems by Kapsch. In 1995, Austria's EcoPoint System was implemented.

In 2000, the company acquired traffic control technology from Bosch and Saab and founded subsidiaries and interests in Asia, Australia, South America and South Africa, followed by the acquisition of Schrack BusinessCom a year later.

In 2002, the Kapsch Group was into three business areas, namely Kapsch BusinessCom AG, Kapsch CarrierCom AG and Kapsch TrafficCom AG. The latter implements the electronic toll collection system based on microwave technology in Austria in 2003. A year later, the commercial operation of Austria's nationwide truck tolling system was going operational and new representative offices in China and a branch office in Croatia are founded.

In 2005, the Kapsch Telematic Services GmbH was founded with branch offices in Czech Republic and Hungary.

In 2006, Kapsch TrafficCom AG implemented a toll system in Czech Republic. Three years later, the firm was awarded the implementation of the Gauteng tolling project in South Africa[5] and implemented a toll system in Republic of Belarus in 2013.

In 2014, Kapsch TrafficCom acquired Advanced Traffic Management Software (ATMS) provider Transdyn. That same year, Kapsch CarrierCom acquired Prodata Mobility Systems NV.

In fiscal year 2014/15, the Kapsch corporate group generated a total revenue of €908.8 million, with more than 5,700 employees worldwide.[1]

In 2015, Kapsch CarrierCom acquired a controlling stake in Streetline, Inc., a provider of smart parking solutions based in California. Also in 2015, the company bought the transport business Schneider Electric Industries, advised by Conquest Advisory.[6]

In 2017, Kapsch TrafficCom acquired a controlling stake in Fluidtime Data Services GmbH, an Austrian IT company for Integrated Mobility and Mobility-as-a-Service.[7]

In the fiscal year 2019/20, the company generated a turnover of €1,137.9 million.[8]

Allegations of irregular payments to South African and Zambian politicians

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In 2019, Kapsch, and its South African operation, Electronic Toll Collection Pty, were accused of paying kickbacks to a South African company, "ProAsh".[9] The payments were revealed by the former CEO of the Electronic Toll Collection, who subsequently testified to The Judicial Commission of Inquiry into Allegations of State Capture. An investigation was promised by the Minister of Transport, Fikile Mbalula, but had not led to action as of February 2021. Kapsch was also accused of using the Electronic Toll Collection Pty to launder bribes for Zambian politicians.[9]

Group organisation

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Kapsch BusinessCom AG (KBC)

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In 2001, Kapsch AG bought the majority of former Schrack BusinessCom AG, which was subsequently merged with the Kapsch Enterprise division. As a result of this merger Kapsch BusinessCom AG was founded and expanded its activities and outreach throughout Central Europe.[10] Today, the company has subsidiaries in the Czech Republic, Slovakia, Hungary, Romania, Turkey and Poland.

The company is a regional reseller and integration partner to technology companies in the IT, network and telecommunications sector: Cisco Gold Certified Partner, Microsoft Gold Partner, Aastra Training Provider.

Kapsch BusinessCom AG produces the Card Reader and GINA Box for the Austrian e-Card system, which is placed in doctors’ offices.

Kapsch TrafficCom AG (KTC)

[edit]

Kapsch TrafficCom AG is an international supplier of "intelligent road traffic telematic solutions".[clarification needed] The company develops and sells products, systems and services primarily for electronic toll collection (ETC) systems and specializes in solutions for open road tolling (ORT), multi-lane free-flow (MLFF) and high occupancy tolling (HOT).

In addition, the company supplies traffic management systems, with a focus on road safety and traffic control, and electronic access systems and parking management.

The company, with headquarters in Vienna, has subsidiaries and interests in 23 countries.[11] The company had performed 210 installations in 35 countries (as of March/2009) in Europe, Australia, North America, Latin America, Middle East, Asia Pacific and in South Africa, and about 13 million on-board units (OBUs) and over 11,300 equipped lanes.

Kapsch TrafficCom AG built the Austrian Truck Tolling System, which went on stream in 2004.

Since 2004, the company has established subsidiaries in Moscow, Russia and Slovenia and has entered into a joint venture agreement with Busi Impianti S.p.A., Italy, creating Kapsch-Busi S.p.A.

In 2014, Kapsch acquired Atlanta-based Transdyn Inc from Powell Industries, establishing Kapsch TrafficCom NA in the United States.[12]

Since June 26, 2007, 30.3% of Kapsch TrafficCom AG has been listed in the Prime Market on the Vienna Stock Exchange. Kapsch Group Beteiligungs GmbH retains possession of 69.7%. Overall 2.2 million new and 1.16 million old shares were brought to the market. The IPO was 14 times over-subscribed.[13] In the fiscal year 2019/20, Kapsch TrafficCom AG generated a turnover of €731.2 million.[14]

References

[edit]
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Kapsch

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from Grokipedia

Kapsch Group is a family-owned Austrian technology conglomerate founded in 1892 by Johann Kapsch in , specializing in intelligent transportation systems, , and solutions.
Currently managed by the fourth generation of the founding family, the company has evolved from early for telegraphs and telephones to pioneering innovations such as Austria's first in 1923 and the nation's initial portable , before shifting focus in recent decades to sustainable mobility technologies.
Its flagship subsidiary, Kapsch TrafficCom AG, develops and deploys systems, software, and urban mobility solutions, with operational projects in more than 50 countries and annual revenues of approximately €530 million as of 2024/25.
Notable achievements include the implementation of Austria's GO-Box tolling system in 2004, which revolutionized regional heavy charging, alongside global contracts for tolling and infrastructure.
The group has faced lawsuits from competitors like Neology and Amtech Systems, though U.S. courts have largely ruled in its favor, affirming the legitimacy of its 6C tolling technology standards.

History

Founding and Early Expansion (1892–1990s)

Kapsch was founded on October 31, 1892, by Johann Kapsch (1845–1921) as a precision mechanics workshop in Vienna's Neubau district, initially focused on producing telegraph and equipment for the Austrian postal and telegraph administration. The workshop's early operations emphasized high-precision manufacturing, supplying state entities with Morse telegraph devices and basic telecommunication tools amid the late Habsburg era's infrastructural demands. Following , Kapsch expanded regionally, providing telephone networks and semi-automatic switchboards to cities including , , and . In 1923, the company manufactured its first , and by 1924, it became a founding member of RAVAG, Austria's initial broadcasting corporation; a second factory opened in 1927 to support growing production. During the 1938 and , Kapsch supplied radio equipment to German armed forces and state authorities, reaching over 3,000 employees by 1943 despite wartime constraints. Post-1945 reconstruction saw Kapsch introduce compact radios and Austria's first television sets amid material shortages. By 1953, it secured agency rights for GmbH in , broadening into a comprehensive portfolio including and transmission systems. In 1970, Kapsch equipped the with train radio systems and contributed to via the Koralpe radar installation. Expansion continued into the 1980s with a 1982 partnership with to deploy 's digital telephone infrastructure, marking adaptation to electronic switching technologies. Into the early , the company began exploring intelligent traffic solutions, laying groundwork for diversification beyond core while maintaining family ownership and headquarters.

Entry into Telematics and Modern Growth (1990s–2010s)

In the early 1990s, the Kapsch Group, leveraging its expertise, began entering the road traffic sector through initial small-scale projects focused on intelligent transportation solutions, including control and parking garage management. This marked a strategic pivot toward applying communication technologies to urban mobility challenges, with exploratory efforts starting around 1990. A pivotal milestone occurred in 1996 with the 'Öko-Punkte' project in Austria, where Kapsch developed an early electronic tolling system that incentivized environmentally friendly driving behaviors by rewarding low-emission vehicles with points redeemable for discounts; this initiative laid the groundwork for advanced electronic toll collection (ETC) technologies and positioned the group as a pioneer in . By 2002, following internal reorganization, Kapsch TrafficCom AG was established as a from the parent Kapsch AG, consolidating the group's road telematics division and subsidiaries into a dedicated entity for tolling and systems. This structural shift enabled focused expansion, culminating in 2004 with the deployment of the world's first nationwide multi-lane free-flow (MLFF) tolling system for in the , utilizing microwave technology for seamless, barrier-free collection without vehicle stops. Subsequent projects, such as electronic tolling implementations across , built on this , emphasizing satellite-based and dedicated short-range communication (DSRC) systems to handle high-volume efficiently. The 2007 initial public offering (IPO) of Kapsch TrafficCom on the provided capital for international acquisitions and project scaling, driving revenue growth amid rising demand for ETC amid European infrastructure investments. By fiscal year 2009/10, revenues reached €216 million, an 8% increase year-over-year, fueled by tolling contracts; this accelerated in 2010/11 with record operating results and delivery of 5.2 million on-board units (OBUs) for vehicle transponders, reflecting expanded in tolling operations across multiple countries. Through the , the division grew by securing large-scale contracts for urban and ETC, transitioning from niche European projects to a broader portfolio integrating for congestion reduction and emissions monitoring.

Recent Milestones and Restructuring (2020s)

In July 2021, Kapsch Group announced a strategic to secure generational continuity within the entrepreneurial family and sharpen focus on core technologies in and . This repositioning aimed to adapt the conglomerate's structure for long-term sustainability amid evolving market demands. Kapsch TrafficCom, the group's primary operating subsidiary, encountered significant financial pressures in the early , exacerbated by COVID-19-related project delays and high leverage, leading to a 31% decline to EUR 505 million in fiscal year 2020/21. To address these, the company initiated a program supported by , which conducted an independent review and implemented a initiative targeting EUR 35 million in EBIT gains through cost reductions, workforce adjustments, and optimization. The effort exceeded expectations, delivering EUR 60 million in EBIT improvement within one year, alongside negotiations with creditors to stabilize the . On May 31, 2023, Kapsch TrafficCom reached a comprehensive agreement with major financial creditors to restructure financing, including extensions of existing facilities and new commitments, with an immediate goal of reducing net debt by at least EUR 60 million and a longer-term target of net debt to EBITDA below 3.0x. This paved the way for further stabilization, culminating in a long-term financing pact with primary banks on March 26, 2025, extending maturities to March 29, 2030, and enhancing liquidity for core operations. By 2023/24, these measures enabled Kapsch TrafficCom to achieve key milestones that repositioned the company on a solid foundation, including operational improvements despite ongoing challenges like North American restructuring and issues. In 2024/25, revenues reached EUR 530 million—slightly down due to deconsolidations of underperforming units—while EBIT improved to EUR 13 million, reflecting modest progress amid selective divestitures to streamline the portfolio. These steps underscored a shift toward efficiency and targeted growth in intelligent transportation systems.

Corporate Structure

Ownership and Governance

Kapsch TrafficCom AG, the primary listed entity within the Kapsch Group, maintains a shareholder structure dominated by KAPSCH-Group Beteiligungs , which holds 63.3% of its shares as of the latest reporting. The remaining 36.7% constitutes free float, traded on the Stock Exchange under the ticker KTCG. This serves as the investment vehicle for the founding Kapsch family, ensuring family control over strategic decisions across the group's operations. The broader Kapsch Group operates as a privately held entity under through KAPSCH-Group Beteiligungs , with no public disclosure of fractional family shareholdings beyond the aggregate majority stake in subsidiaries like TrafficCom. Institutional investors, such as Matejka & Partner with approximately 2.6%, represent minor stakes in TrafficCom but exert limited influence due to the concentrated . Governance at Kapsch TrafficCom AG adheres to Austria's dualistic corporate model, featuring a Managing Board responsible for day-to-day operations and a providing oversight and strategic guidance. The Managing Board is chaired by Georg Kapsch as , alongside members Alfredo Escribá Gallego and Samuel Kapsch, who joined effective April 1, 2025. Georg Kapsch also directs the overarching Kapsch Group, linking subsidiary governance to family-led priorities. The comprises independent and affiliated members, including Sonja Hammerschmid as Chair of the Compensation Committee and Christian Windisch overseeing the , ensuring compliance with regulatory standards and . This structure emphasizes transparency in relations, with annual reports detailing board independence and shareholdings among members, such as minimal personal stakes held by figures like Claudia Rudolf-Misch. Family influence persists through board representation, aligning governance with long-term value creation over short-term market pressures.

Key Subsidiaries and Rebranding Efforts

Kapsch TrafficCom AG serves as the primary operating subsidiary of the Kapsch Group, focusing on intelligent transportation systems, tolling solutions, and urban mobility technologies, with operations spanning over 25 countries and approximately 3,000 employees as of recent reports. Kapsch BusinessCom AG, another key entity historically under the group, handles IT and services, though its integration and focus have evolved amid broader portfolio optimizations. Additional subsidiaries include Kapsch Immobilien , managing assets such as the EURO PLAZA office complex exceeding 200,000 square meters. Rebranding and strategic repositioning efforts began prominently with the 2014 launch of Program 2020 under CEO Georg Kapsch, transforming the group from a toll systems provider into a global intelligent mobility solutions leader, facilitated by acquisitions like Schneider Electric's Telvent Tráfico y Transporte business to bolster presence in , , the , and the . This initiative freed over US$100 million for investments and implemented a new via the Fit for Growth framework, enhancing efficiency, global collaboration, and innovation in areas like in-vehicle technology. Further occurred in July 2021, aiming to sustain and continuity across core companies including Kapsch TrafficCom and Kapsch BusinessCom, amid a refocus on high-growth technology sectors. In alignment with Strategy 2027, the group divested non-core assets in 2024, such as an 82.9% stake in South Africa's TMT via subsidiary KTC-ZA Holding, to streamline operations and strengthen financial positioning. Similar divestitures, including ceding majority control of Kapsch Telematic Services IOOO in in 2025 while retaining economic interests, reflect ongoing efforts to concentrate on strategic mobility and ITS competencies.

Business Operations

Intelligent Transportation Systems (ITS)

Kapsch TrafficCom, a of the Kapsch Group, specializes in intelligent transportation systems (ITS) that integrate technologies for , urban mobility, road safety, and connected vehicles to promote sustainable mobility. These systems process from sensors, cameras, and vehicles to optimize , reduce congestion, and enhance across highways, urban areas, and tolling infrastructure. The company's ITS portfolio includes central software platforms that aggregate from multiple sources, enabling agencies to monitor roadway performance and implement dynamic controls such as signal optimization and variable message signs. In traffic intelligence, Kapsch deploys solutions harnessing technologies for and mobility planning, including weigh-in-motion stations, s, and traffic cameras integrated into unified networks. For instance, in 2025, Kapsch implemented an ITS project in featuring 21 traffic cameras, six variable message signs, one , and two weigh-in-motion stations to improve monitoring and response times. Urban applications focus on initiatives, such as the 2024 deployment in Ribeirão Preto, , where ITS enhanced traffic efficiency and safety through interconnected signaling and data platforms. Kapsch's ITS extends to connected and cooperative systems, integrating vehicle-to-infrastructure communication for automated and eco-friendly traffic controls like the EcoTrafiX suite, which optimizes signals based on real-time environmental data. These technologies have been applied in over 50 countries, supporting projects on major highways, bridges, tunnels, and airports, with deployments emphasizing reliability over four decades in alone. The company showcased advancements in these areas at the ITS World 2024 in , highlighting scalable solutions for global traffic challenges.

Tolling and Mobility Solutions

Kapsch TrafficCom, a of the Kapsch Group, specializes in tolling solutions that enable efficient, barrier-free road user charging through technologies such as All-Electronic Tolling (AET), which eliminates physical toll booths and manual collection by using centralized operations and high-accuracy sensors like NVDC. With over 20 years of experience, the company has implemented AET systems in projects including the , covering 51 facilities and 148 lanes without requiring lane closures. Multi-Lane Free Flow (MLFF) systems, featuring DSRC, ANPR, and AI enhancements, support scalable tolling in high-volume corridors; notable deployments include with 140 gantries and 500,000 on-board units, and handling 513 million transactions annually across 32 gantries. Satellite tolling leverages GNSS technologies including GPS and Galileo for location-based, distance-proportional charging, adaptable to diverse road networks and supportive of emission-reduction policies; in , Kapsch operates a nationwide GNSS system for vehicles over 3.5 tons since March 2020. Managed lanes solutions incorporate algorithms, detection, and trip-building capabilities to optimize flow and revenue, as seen in projects like the LBJ Express and North Tarrant Express. (TaaS) provides end-to-end with 24/7 monitoring and maintenance, exemplified by operations on Greece's Olympia Odos concession. Recent advancements include the deployment of the world's first production-level V2X tolling system in in 2025, integrating communication for enhanced accuracy. In mobility solutions, Kapsch emphasizes platforms like EcoTrafiX, an integrated system for urban traffic control that fuses multimodal data for real-time optimization, incident response, and multi-agency coordination, deployed in over 10 cities including , , , , and . These systems prioritize , deliver traveler information via integrations like services with and HERE, and yield measurable outcomes such as reduced emissions and travel times in Vienna's "Traffic Management 2.0" and Quito's contactless tolling. Overall, Kapsch TrafficCom's offerings span more than 50 countries, focusing on sustainable mobility by minimizing congestion, enhancing , and integrating for infrastructure-light operations.

IT and Telecommunications Services

Kapsch Group's IT and telecommunications services are delivered primarily through its subsidiaries Kapsch BusinessCom and Kapsch CarrierCom, focusing on digital transformation, ICT infrastructure, and mission-critical communication networks. Kapsch BusinessCom provides end-to-end ICT solutions, including consulting, system integration, and managed services for enterprise digitalization, serving sectors such as finance, media, and energy with clients including Erste Bank, ORF, and OMV. In recent years, Kapsch BusinessCom underwent rebranding to K-Businesscom following its integration into CANCOM Austria, emphasizing certified expertise in cloud services, cybersecurity, and workflow automation as a local digitalization partner. Kapsch CarrierCom specializes in infrastructure for public operators and critical sectors like railways, offering , deployment, and maintenance of networks such as for secure communications. The unit has established leadership in railway telecom, with deployments supporting high-reliability systems in multiple countries, including a 2010s joint venture with Algeria's SNTF (Rail-Telecom) to build national railway telecommunications capabilities, personnel, and localize expertise. This includes end-to-end solutions for signaling, data transmission, and operational telecom, contributing to Kapsch's global portfolio in transport-related communications beyond core ITS applications. These services complement Kapsch's mobility focus by integrating IT backbones with telecom overlays, enabling scalable and connectivity for large-scale projects; for instance, CarrierCom's expertise supports hybrid networks combining public and private infrastructure for enhanced reliability. BusinessCom's operations, handling over 17,000 customers as of recent fiscal reporting, underscore Kapsch's role in enterprise IT resilience, though revenues are not separately broken out in group financials dominated by TrafficCom. The divisions maintain a presence in and select international markets, prioritizing R&D in 5G-compatible systems and secure data centers.

Innovations and Market Impact

Technological Advancements

Kapsch TrafficCom pioneered connected vehicle tolling in 2020, integrating (V2X) communication standards to enable seamless, infrastructure-light toll collection via roadside units (RSUs) that provide real-time notifications and reduce deployment costs. This advancement builds on earlier demonstrations, evolving into next-generation systems that merge tolling with connected mobility technologies, as showcased in collaborations with for North American applications. In September 2025, Kapsch announced deployment of the world's first V2X tolling system with the Turnpike Authority, utilizing (DSRC) or for precise, low-latency transactions without gantries. The company has developed All Electronic Tolling (AET) systems, which eliminate physical toll plazas by relying on (ANPR), global navigation satellite systems (GNSS), and (DSRC) for barrier-free collection, processing millions of transactions daily in operational networks. Advancements in ANPR engines, introduced in early 2025, enhance accuracy in diverse conditions like low light or high speeds, supporting free-flow tolling across North American corridors with over 99% read rates reported in field tests. Satellite-based tolling solutions further extend this to remote or high-mobility scenarios, using GNSS positioning for distance-based charging without roadside infrastructure. In intelligent transportation systems (ITS), Kapsch integrates predictive analytics with sensor fusion from cameras, weigh-in-motion (WIM) stations, and license plate recognition (LPR) for real-time traffic management, as implemented in Mexico's 2025 projects featuring 21 traffic cameras and variable message signs for congestion mitigation. The Elumian transponder, launched in September 2024, represents a hardware innovation: a self-charging device powered by ambient light via Powerfoyle photovoltaic cells, extending operational life in GNSS-based tolling without battery replacements. Kapsch holds patents supporting these technologies, including U.S. Patent 11,145,195 (granted 2021) for ITS service stations enabling multi-protocol vehicle communications and methods for backscatter-modulated RFID signals in traffic surveillance, filed as early as 2020. Additional innovations encompass smart corridor programs with V2X-enabled adaptive signals and traffic data platforms, demonstrated at the 2025 ITS World Congress for scalable urban mobility solutions. These developments prioritize interoperability with standards like SAE J2735, ensuring compatibility across global deployments while minimizing environmental impact through reduced hardware needs.

Major Contracts and Global Projects

Kapsch TrafficCom has secured numerous high-profile contracts for electronic tolling systems, including the nationwide BelToll project in , which deployed a multi-lane free-flow (MLFF) (ETC) system featuring 500,000 on-board units, 140 enforcement gantries, two data centers, and 42 mobile enforcement vehicles. In , the company implemented a 2,200 km free-flow tolling network using (ANPR), supporting 250,000 on-board units and emission-based tariffs for heavy vehicles. These projects exemplify Kapsch's expertise in large-scale, satellite- and gantry-based tolling infrastructure across . In Australia and New Zealand, Kapsch delivered pioneering MLFF tolling systems, including the world's first large-scale electronic tolling in Sydney, with subsequent deployments in Melbourne, Brisbane, and Auckland utilizing dedicated short-range communications (DSRC), ANPR, and video detection technologies. A recent extension includes supplying toll infrastructure for a new urban highway in Melbourne, enhancing operational efficiency. In South America, the Smart Toll North Access project in Buenos Aires, Argentina, covers a 100 km highway with 160 lanes, 21 toll stations, and four MLFF gantries. Recent global expansions include a framework agreement for tolling in six Norwegian counties with Vegfinans, deploying advanced MLFF technology to promote sustainable mobility. In the United States, Kapsch operates seven traffic management centers (TMCs), with new contracts awarded in June 2025 for two TMCs in New York State covering 12 counties, each with a three-year base period and two one-year options. Tunnel management projects feature prominently, such as the implementation and maintenance of systems for five tunnels in Sharjah, UAE, integrating traffic, ventilation, and emergency controls, awarded in May 2025. Similarly, in Brazil, Kapsch equipped four tunnels with a comprehensive tunnel management system as part of the country's largest recent road infrastructure initiative. In intelligent transportation systems (ITS), Kapsch's projects include EcoTrafiX deployments for urban traffic control in , integrating 4,000 controllers across nine areas. European contracts encompass modernization of toll plazas on Spain's AP-8 highway in , completed in September 2025, and a nationwide payment ecosystem in handling over 800,000 monthly transactions across 152 tolls. In Serbia, four new toll plazas opened along the Moravski Corridor in October 2025, supporting regional connectivity. These contracts underscore Kapsch's role in enhancing global mobility through scalable, technology-driven solutions.

Controversies

Allegations of Irregular Payments in

In March 2021, the Organisation Undoing Tax Abuse (OUTA), a South African watchdog, alleged that (ETC), a of Kapsch TrafficCom AG, made irregular payments totaling R10 million to subcontractor ProAsh Technologies with no discernible services or deliverables in return, in connection with South Africa's Freeway Improvement Project e-toll system. These claims stemmed from internal audits and police reports, which highlighted suspicious patterns and potential kickbacks linked to the 2007 e-toll tender process. OUTA further asserted that Kapsch TrafficCom's South African operations facilitated the laundering of a US$5.5 million bribe intended for Zambian officials to secure tolling contracts there, routed through intermediary entities. The Zambian allegations involved Kapsch's local subsidiary allegedly channeling funds via South African accounts to influence procurement decisions for electronic tolling systems, as uncovered in forensic reviews prompted by Kapsch's own auditors who flagged fraudulent invoicing practices. In South Africa, the payments to ProAsh were said to occur shortly before ETC secured key e-toll enforcement roles, raising questions about undue influence in contract awards amid broader scrutiny of the project's opacity and cost overruns. These accusations, based on leaked police dockets and whistleblower inputs, pointed to systemic risks in Kapsch's African operations where tolling infrastructure deals intersected with politically connected subcontractors. OUTA emphasized that such practices undermined public procurement integrity in resource-constrained environments. In March 2021, the Organization Undoing Tax Abuse (OUTA) filed reports with South African authorities under Section 34(3)(a) of the Prevention and Combating of Corrupt Activities Act, alleging that (ETC), a Kapsch TrafficCom subsidiary, engaged in and irregular payments related to the Gauteng e-toll system and a Zambian tolling project. OUTA claimed these reports stemmed from whistleblower disclosures and internal documents, including suspicious payments totaling R10 million to a South African entity and facilitation of approximately $2.6 million in bribes to Zambian officials via South African banking channels. Kapsch TrafficCom rejected the allegations as unfounded, describing them as baseless claims from a whistleblower, though the company declined to address specific details when pressed by investigators or media. Internal audits by Kapsch in reportedly flagged irregularities in payments, which OUTA asserted were escalated to ETC's board and Kapsch's executive management without adequate resolution. The (SANRAL) stated it was unable to comment on the claims, citing ongoing reviews, while OUTA demanded an independent inquiry into the e-toll contracts. No criminal convictions or fines have been imposed on Kapsch TrafficCom or ETC in connection with these allegations as of October 2025. In , the reports prompted referrals to the Special Investigating Unit and police, but no prosecutions or judicial findings of have been reported, coinciding with the e-toll system's cancellation in April 2024 due to widespread non-compliance rather than probes. In , claims involving local officials and partners led to arrests, including the re-arrest of a chief executive from Intelligent Mobility Solutions and a former minister in 2022, but investigations focused on domestic actors without implicating Kapsch directly in criminal proceedings. Related civil litigation ensued, including Kapsch's appeals against default judgments by JV partner Lamise Trading Limited, with the Zambian Court of Appeal ruling in 2025 to set aside certain orders in Kapsch's favor, amid disputes over project contracts rather than adjudication.

Financial Performance

Kapsch TrafficCom AG, the core operating subsidiary driving the Kapsch Group's financials in transportation technology, exhibited revenue growth from EUR 519.8 million in 2021/22 to a peak of EUR 553.4 million in 2022/23, reflecting successful execution of large-scale tolling and intelligent transportation systems projects amid global demand. This upward trajectory built on earlier expansion, with revenues nearly doubling over the decade prior to 2023 through geographic diversification into , Asia, and Europe, alongside acquisitions enhancing capabilities in . EBIT during this period fluctuated due to project-specific risks, including delays and impacts, but showed operational resilience with adjusted margins improving in peak years from cost efficiencies and high-margin contracts. growth averaged 56.3% annually over the same decade, surpassing the electronic sector's 9.2% benchmark, attributable to scalable software solutions and recurring from system operations. Longer-term trends since the company's public listing in 1999 reveal cyclical patterns tied to public procurement cycles, with recoveries following downturns like the through pivots to emerging markets in and the . Net profitability remained positive but modest, averaging low single-digit margins, constrained by high capital expenditures for R&D in connected vehicle technologies. Overall, historical performance underscores dependence on government contracts, which comprised over 90% of revenues, exposing the group to budgetary and regulatory variances across jurisdictions.

Recent Results (2023–2025)

In the financial year 2023/24, ending March 31, 2024, Kapsch TrafficCom AG recorded group revenues of €539 million, representing a 3% decline from €553 million in the prior year, primarily due to reduced project activity in tolling systems. (EBIT) stood at €20 million, supported by operational efficiencies and cost controls amid challenging market conditions in and . The company achieved a positive net result, marking a recovery from prior losses, with approximately 4,000 employees contributing to these outcomes. For the financial year 2024/25, ending March 31, 2025, revenues fell further to €530 million, influenced by deconsolidations of certain subsidiaries and subdued demand in key segments like . EBIT improved slightly to €13 million, reflecting better margins in ongoing projects, though the net result shifted to a loss of €7 million due to higher financing costs and currency effects. The rose to 20%, and the gearing ratio decreased to 111%, indicating modest progress in strengthening despite persistent pressures. In the early part of 2025, within the first half of financial year 2025/26 (April-September 2025), preliminary revenues reached approximately €200 million, falling short of internal expectations amid delays in contract awards and higher-than-anticipated project costs. This prompted a downward revision of the full-year 2025/26 outlook to €450 million in revenues from an initial €510 million projection, with EBIT expected to remain under pressure absent additional one-time gains from ongoing arbitrations. First-quarter revenues specifically declined 28% year-over-year to €100 million, highlighting segment-specific weaknesses in tolling operations.

References

  1. https://www.kapsch.net/en/about-us/history
  2. https://www.kapsch.net/en/about-us
  3. https://www.kapsch.net/en/press/releases/ktc-20221031-pr-en
  4. https://www.kapsch.net/_Resources/Persistent/d40ec1600ff55a6087cb8a0010c597c3df2c1c87/KTC%2520Group%2520Report%2520FY%25202024_25.pdf
  5. https://apnews.com/c14aa08a67fd4139ae718eec21b34f06
  6. https://www.kapsch.net/en/press/releases/ktc-20190430-pr-en
  7. https://www.strategyand.pwc.com/gx/en/unique-solutions/fit-for-growth/kapsch.html
  8. https://www.kapsch.net/_Resources/Persistent/8ad3362d4659f026cc1972a69b236119084e9fc7/KTC_Annual_report_2009-10.pdf
  9. https://www.kapsch.net/_Resources/Persistent/e607836c93e58ea43ab0a9d0ae52b5ab021f8295/KTC_Annual_report_2010-11.pdf
  10. https://www.kapsch.net/_Resources/Persistent/adf0c2cb99316d0320e43b78929c76947bf21551/KTC_Annual_report_2018-19.pdf
  11. https://www.kapsch.net/_Resources/Persistent/b969c25bdf84a00580d5ff3a833751016d9be500/KTC_Annual_report_2007-08.pdf
  12. https://www.kapsch.net/en/ir/announcements/kag-20210712-cr-en
  13. https://www.kapsch.net/en/press/releases/kag-20210712-pr-en
  14. https://www.kapsch.net/en/ir/announcements/ktc-20210616-cr-en
  15. https://www.ey.com/en_us/insights/restructuring-turnaround/how-debt-restructuring-got-a-traffic-mobility-leader-back-on-the-road
  16. https://www.kapsch.net/en/ir/ad-hoc/ktc-20230531-adhoc-en
  17. https://www.kapsch.net/en/ir/announcements/ktc-20250326-cr-en
  18. https://www.kapsch.net/en/ir
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