EQS-News: Knorr-Bremse Opens the 2025 Fiscal Year with Robust Results

Knorr-Bremse Opens the 2025 Fiscal Year with Robust Results

• Good start to the year, especially in the Rail Vehicle Systems division
• Very high demand in the first quarter of 2025: order intake at € 2.4 billion, order book at € 7.4 billion
• Revenues almost stable at approximately € 2 billion
• Operating EBIT of € 236 million at prior year’s level and operating EBIT margin also steady at 12.1%
• Free cash flow improved a significant € 110 million to € 15 million
• Full-year guidance for 2025 confirmed
   

Munich, May 8, 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 quarter of 2025.

Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG: “The good start to the year shows that we are delivering on what we announced. Our Rail Vehicle Systems division impresses with outstanding performance, and the Commercial Vehicle Systems division again proves its resilience against a background of tough market conditions. Despite the adverse environment, we kept the operating EBIT margin steady at 12.1% and are expecting a noticeable increase as business continues. We react to new challenges quickly and consistently and are proceeding with our BOOST strategy program as planned in parallel. We are currently going through a sale process for two further business units. Simultaneously, the successful progress of the integration of KB Signaling, the newly acquired American signaling technology business, is already delivering significant effects. With it, we will strengthen our dependable rail business in a lasting way.”

Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “We have a rock-solid financial footing. Our finances are secured over the long term, and we are posting an excellent equity ratio. In the medium term, we expect the new German government’s economic stimulus program to provide momentum for business in both divisions. The capital expenditure on infrastructure will drive new orders for commercial and rail vehicles. Our globally distinctive localization strategy greatly supports our ability to act flexibly and our containment of any tariff-related impacts. The free cash flow of € 15 million, which is extraordinarily high for the first quarter, is due to strong operational performance and, to a large extent, the ongoing optimization of working capital.”

The geopolitical and economic challenges are persisting. Thanks to its decentralized basis, Knorr-Bremse is still demonstrating itself to be highly resilient. As explained in the notification on April 29, 2025, the order intake has risen by an impressive 12.5% year over year to € 2,376 million. There are positive effects on this from the newly acquired KB Signaling business as well as pre-emptive effects due to the current tariff issue.

The order book increased to € 7,443 million (March 31, 2024: € 6,728 million), representing 10.6% growth. The consolidated revenues of € 1,958 million exhibited largely steady development from the previous year (Q1/2024: € 1,974 million) and recorded a slight, organic increase. The Rail Vehicle Systems (RVS) division was therefore more than able to compensate for the market-driven revenue developments in the Commercial Vehicle Systems (CVS) division in the previous year.

With operating EBIT of € 236 million (Q1/2024: € 238 million), too, the Rail Vehicle Systems division was able to offset the challenging truck markets for reasons including in particular the positive development in the Asia–Pacific market and the good mix between OE and aftermarket business. The operating EBIT margin remained at the previous year’s level at 12.1% (Q1/2024: 12.1%). Free cash flow rose to € 15 million due to good business performance, ongoing working capital optimization, and a tax refund (Q1/2024: € -95 million), which is extraordinarily strong for the first quarter.
 

Overview of Strong Development in Both Divisions

Rail Vehicle Systems Division (RVS):

• Order intake climbed organically though it was also energized by KB Signaling, rising by 23.5% to € 1,312 million (Q1/2024: € 1,062 million)
• The order book was also supported by KB Signaling and increased by 16.7% to € 5,530 million (March 31, 2024: € 4,739 million)
• Revenue was up a significant 10.5% at € 1,065 million (Q1/2024: € 964 million)
• Operating EBIT improved by 13.9% from the corresponding prior-year figure to € 166 million (Q1/2024: € 145 million)
• The operating EBIT margin saw a significant 50 base point increase to 15.6% (Q1/2024: 15.1%)

Commercial Vehicle Systems Division (CVS)

• Order intake increased slightly to € 1,065 million (Q1/2024: € 1,051 million)
• The order book, at € 1,914 million as at March 31, 2025, remained nearly stable (March 31, 2024: € 1,991 million)
• Revenues in the first quarter saw an expected decline for market-related reasons and due to the deconsolidation of GT and Sheppard, going down to € 894 million (Q1/2024: € 1,011 million)
• Operating EBIT went down to € 85 million (Q1/2024: € 111 million)
• The operating EBIT margin decreased accordingly to 9.5% (Q1/2024: 11.0%)

Guidance

Based on the exchange rate levels of February 2025 and based on the assumption that the geopolitical and macroeconomic environments remain mostly stable and that there are no larger impacts from possible tariffs, Knorr-Bremse is confirming its guidance for the 2025 fiscal year. The weakness in the American truck market should be mitigated by stronger European business. Moreover, there is higher potential for restructuring in a number of regions which now results in costs of approximately € 75 million. Accordingly, the company expects revenues between € 8,100 million and € 8,400 million, an operating EBIT margin between 12.5% and 13.5%, and free cash flow between € 700 million and € 800 million.

The full quarterly report is available at www.knorr-bremse.com. Notes to and reconciliations with the financial indicators used can be found in the 2024 Annual Report of Knorr-Bremse AG (available under Investor Relations/Annual Report).

Knorr-Bremse Group Key Performance Indicators:

Key Figures for the Knorr-Bremse Divisions:

Media Contacts:

Claudia Züchner | Spokeswoman, 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 182310; 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.