EQS-News: Knorr-Bremse fully on track: Strong rail business and further improvement in profitability

Knorr-Bremse fully on track: Strong rail business and further improvement in profitability

• Persistently strong demand, especially in the Rail division: Group’s order intake rose to € 6.4 billion, order book remains high at € 7.4 billion
• Consolidated revenues nearly stable at € 5.8 billion despite significant exchange rate effects 
• Operating EBIT in the first nine months increases to € 749 million, operating EBIT margin of 12.8%
• In the third quarter, the highest profitability in 16 quarters was achieved with an operating EBIT margin of 13.3%
• Free cash flow increases by almost 30% to € 319 million
• BOOST 2026 strategy program: New growth potential thanks to strategic investments in future fields, such as in the electronics provider duagon
• EBIT and Cash Flow Guidance for 2025 confirmed
   

Munich, October 30, 2025 – Knorr-Bremse AG, the global market leader for braking systems and a leading supplier of other safety-critical rail and commercial vehicle systems, today published its results for the first nine months and third quarter of 2025.

Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG: “Our company remains on track – buoyed by strong demand, our resilient business model and rigorous implementation of our strategy. The performance of our Rail division in particular is contributing substantially to our success. In the Truck division, despite the significant market weakness in the United States during the current fiscal year, we were able to maintain a double-digit operating EBIT margin and achieve an increase of 50 basis points in the third quarter. We are systematically restructuring our portfolio with our most recent acquisitions, which underscore our growth ambitions. The takeover of duagon enables us to strengthen our business with electronics and software solutions for rail vehicles and further expand our high-margin revenue share of the Rail division.”

Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “Knorr-Bremse has done its homework and has a very solid financial footing. In times of geopolitical and macroeconomic uncertainty, this gives us freedom and represents a clear competitive advantage. Our best profitability in 16 quarters – 13.3% in the past quarter – confirms this impressively. The focus last year was on preparing and implementing adjustment of the portfolio. This year, we’re adapting our structures so that we can address the issue of sustainable growth and expansion more strongly in the coming year.”

The persistently high demand in the Rail division and the continued solid performance of the Truck division despite market weakness clearly underline Knorr-Bremse’s resilience. In particular, the Rail Vehicle Systems (RVS) division made a substantial contribution to our overall success.

The order intake improved significantly year-on-year to € 6,440 million (9M 2024: € 6,182 million). The order book increased by 4.4% to € 7,368 million as at September 30, 2025 (September 30, 2024: € 7,058 million). Organically, this even equates to a rise of 8.2%. Consolidated revenues were € 5,839 million and thus largely stable compared with the first nine months of 2024 despite considerable exchange rate effects (9M 2024: € 5,897 million). Organically, revenues rose slightly by 0.4%.

Consolidated earnings improved on the back of the higher revenues in the Rail division, resultant economies of scale, targeted efficiency measures and successes in restructuring of the portfolio. Operating EBIT rose by 3.3% to € 749 million (9M 2024: € 725 million). The operating EBIT margin improved accordingly from 12.3% in the prior-year period to 12.8%, an increase of 0.5 percentage points. In the third quarter alone, the operating EBIT margin improved by one percentage point to 13.3%. Free cash flow rose positively in the first nine months thanks to the good operating performance and working capital optimization, reaching € 319 million, an increase of almost 30% despite the negative impact of exchange rate effects (9M 2024: EUR 248 million).

Overview of Development in Both Divisions

Rail Vehicle Systems Division (RVS):

• Order intake increased due to the persistently high demand in the global rail market, up a significant 13.5% to € 3,773 million (9M 2024: € 3,323 million)
• The order book increased to € 5,659 million (September 30, 2024: € 5,222 million)
• Revenues improved 8.2% to € 3,219 million (9M 2024: € 2,976 million)
• Operating EBIT rose by a significant 13.8% to € 526 million (9M 2024: € 463 million)
• The operating EBIT margin increased to 16.4% (9M 2024: 15.5%)

 

Commercial Vehicle Systems Division (CVS):

• Order intake amounted to € 2,667 million (9M 2024: € 2,861 million) and organically was at the previous year’s level
• Given the challenges in the truck market, the order book remained at a high level of € 1,710 million as at September 30, 2025 (September 30, 2024: € 1,838 million)
• Revenues in the first nine months were € 2,622 million, 10.3% behind the comparable period of the previous year (9M 2024: € 2,922 million) due to market-related factors and exchange rate effects as well as portfolio adjustments; organically, revenues only fell by 3.3%
• Operating EBIT declined to € 264 million, mainly due to volumes (9M 2024: € 314 million)
• Profitability was almost maintained despite the market-driven reduction in volume and stood at 10.1% (9M/2024: 10.7%)

EBIT and Cash Flow Guidance for 2025 confirmed

Knorr-Bremse confirms its EBIT and cash flow guidance for the 2025 fiscal year. This is based on the assumption of stable geopolitical and macroeconomic environments, exchange rates at the level of October 2025 and no major impacts from possible tariffs. Knorr-Bremse expects revenues of between € 7,800 million and € 8,100 million, an operating EBIT margin of 12.5% to 13.5% and a free cash flow of between € 700 million and € 800 million.

 

The interim report for the January to September 2025 period is available on the Knorr-Bremse AG website. Notes to and reconciliations with the financial indicators used can be found in the 2024 Annual Report of Knorr-Bremse AG.

 

Knorr-Bremse Group Key Performance Indicators:

	January to September			Third Quarter
	2025	2024	?	2025	2024	?
	€ million	€ million		€ million	€ million
Order intake	6,440	6,182	+4.2%	1,956	1,943	+0.6%
Order book (September 30)	7,368	7,058	+4.4%	7,368	7,058	+4.4%
Revenues	5,839	5,897	-1.0%	1,883	1,910	-1.4%
EBIT	650	694	-6.4%	218	219	-0.2%
EBIT margin	11.1%	11.8%	-70 bp	11.6%	11.5%	+10 bp
Operating EBIT	749	725	+3.3%	251	235	+6.7%
Operating EBIT margin	12.8%	12.3%	+50 bp	13.3%	12.3%	+100 bp
Free cash flow	319	248	+28.7%	159	184	-13.9%
Capital expenditure (before IFRS 16 and acquisitions)	194	216	-10.4%	78	80	-2,3%
R&D as % of revenues	6.9%	7.0%	-10 bp	6.8%	6.7%	+10 bp
Earnings per share (in €)	2.59	2.66	-2.6%	0.89	0.81	+9.9%

 

Key Figures for the Knorr-Bremse Divisions:

	January to September			Third Quarter
	2025	2024	?	2025	2024	?
	€ million	€ million		€ million	€ million
RVS division
Order intake	3,773	3,323	+13.5%	1,173	1,121	+4.7%
Order book	5,659	5,222	+8.4%	5,659	5,222	+8.4%
Revenues	3,219	2,976	+8.2%	1,050	995	+5.5%
EBIT	471	467	+1.0%	163	164	-0.3%
EBIT margin	14.6%	15.7%	-110 bp	15.5%	16.5%	-100 bp
Operating EBIT	526	463	+13.8%	179	159	+12.5%
Operating EBIT margin	16.4%	15.5%	+90 bp	17.0%	16.0%	+100 bp
CVS division
Order intake	2,667	2,861	-6.8%	783	823	-4.9%
Order book	1,710	1,838	-7.0%	1,710	1,838	-7.0%
Revenues	2,622	2,922	-10.3%	833	915	-8.9%
EBIT	228	279	-18.3%	72	70	+2.8%
EBIT margin	8.7%	9.6%	-90 bp	8.7%	7.7%	+100 bp
Operating EBIT	264	314	-15.9%	88	91	-4.0%
Operating EBIT margin	10.1%	10.7%	-60 bp	10.5%	10.0%	+50 bp

 

Media Contacts:

Claudia Züchner | Spokesperson,Corporate/Financial Communications | Knorr-Bremse AG

T +49 89 3547 2582; E claudia.zuechner@knorr-bremse.com

 

Investor Relations contact:

Andreas Spitzauer | Head of Investor Relations | Knorr-Bremse AG

T +49 89 3547 0593; E andreas.spitzauer@knorr-bremse.com

 

 

About Knorr-Bremse

Knorr-Bremse (ISIN: DE000KBX1006, ticker symbol: KBX) is the global market and technology leader for braking systems and a leading supplier of other rail and commercial vehicle systems. Knorr-Bremse’s products make a decisive contribution to greater safety and energy efficiency on rail tracks and roads around the world. More than 32,000 employees at over 100 locations in 30 countries develop and produce innovative solutions and services that meet the highest technological standards. In 2024, Knorr-Bremse’s two divisions together generated revenues of approximately € 7.9 billion. For 120 years, the Company has been at the cutting edge of its industries, driving innovation in mobility and transportation technologies with a leading edge in connected system solutions. Knorr-Bremse is one of Germany’s most successful industrial companies and profits from the key global megatrends: urbanization, sustainability, digitalization, and mobility.

 

 

Disclaimer

This publication has been independently prepared by Knorr-Bremse AG. It may contain forward-looking statements which address key issues such as strategy, future financial results, events, competitive positions, and product developments. These forward-looking statements – like any business activity in a global environment – are always associated with uncertainty. They are subject to a number of risks, uncertainties, and other factors, including, but not limited to, those described in Knorr-Bremse’s disclosures. Should one or more of these risks, uncertainties or other factors materialize, or should underlying expectations not occur or should assumptions prove incorrect, the actual results, performances, or achievements of Knorr-Bremse may vary materially from those described in the relevant forward-looking statements. Such forward-looking statements may be identified by words such as “expect,” “want,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. Knorr-Bremse does not intend, nor does it assume any obligation, to update or revise its forward-looking statements regularly in light of developments which differ from those anticipated.

 

This publication may include supplemental financial measures – not clearly defined in the applicable financial reporting framework – that are or may be alternative performance measures (non-GAAP measures). Knorr-Bremse’s financial position, financial performance, and cash flows should not be assessed solely on the basis of these alternative supplemental financial measures. Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the applicable financial reporting framework. The calculation by other companies that report or describe similarly titled alternative performance measures may vary despite the use of the same or similar terminology.