Knorr-Bremse Aktiengesellschaft / DE000KBX1006

Knorr-Bremse shows its strength and boosts profitability and cash flow Historic highs for revenues and order book in the Rail Division; Truck Division posts an improved double-digit return despite a weaker market Knorr-Bremse generates stable consolidated revenues of € 7.9 billion Record order book of € 7.2 billion provides a solid foundation for fiscal year 2025; order intake remains very high at € 8.2 billion Operating EBIT margin grows significantly from 11.3% in the previous year to 12.3%; more than 60% of the revenue volume from the planned sales to optimize the portfolio already achieved Free cash flow increases to a record € 730 million Supervisory Board acknowledges successes: Early renewal of CEO Marc Llistosella’s contract underlines the importance of the BOOST strategy program Knorr-Bremse gives positive outlook for revenue- and earnings growth in 2025 Munich, February 20, 2025 – Knorr-Bremse, the global market and technology leader for braking systems and a leading supplier of other rail and commercial vehicle systems, posted a strong operational performance in the past fiscal year in a market environment that remained challenging both geopolitically and economically. That is confirmed by the preliminary results for 2024 presented today in Munich. Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG: “Our good results are thanks to a strong team performance. We proved yet again in 2024 that we can handle crises and attain our ambitious goals. Our Truck Division, which currently has to contend with a difficult market situation worldwide, nevertheless generated a double-digit return, a very strong accomplishment. Our Rail Division is an innovation driver and a mover in the rail sector, and was able to significantly increase its result to an all-time record high. Knorr-Bremse is in a very good position operationally. However, we as the global market leader must not be satisfied with what we have achieved: In 2025, we want to implement the next level of our BOOST strategy program, which clearly focuses on sustainable and profitable growth.” Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “All in all, we are in top financial shape. Our financial structure is excellent, our equity is high, and we have long-term financing – a solid basis for mastering the current challenging market environment and leveraging growth opportunities in a targeted way. Our BOOST 2026 measures are reaping the desired effects and we are making the progress we wanted. Cash is King: Profitability is increasing and we achieved the highest operating free cash flow in our 120-year company history. Given our strong operating performance, we are aiming to distribute an increasing dividend for the 2024 fiscal year.” Measures having an impact, profitability rises strongly, and free cash flow at an all-time high Knorr-Bremse achieved strong results thanks to its substantial resilience and the progress made under the BOOST 2026 program: Consolidated revenues remained virtually stable at € 7,883 million (previous year: € 7,926 million) despite the significant weakening of the truck market and various company sales. In particular, growth outside Europe made a positive contribution to that. In organic terms – i.e., excluding the impact of the company acquisitions and sales in the 2024 fiscal year and excluding currency effects – revenues even increased by 0.7%. Continued strong demand, particularly in the Rail Division, made a significant contribution to that. The BOOST 2026 measures with a specific focus on revenues, cost discipline, and cash flow continued to prove valid and effective: The operating EBIT margin increased sharply to 12.3% (previous year: 11.3%) and operating EBIT rose to € 966 million (previous year: € 893 million). Knorr-Bremse achieved an operating free cash flow (i.e., excluding the one-time effects of the sale-and-leaseback transaction in 2019) of € 730 million, a new record high in the company’s history (previous year: € 552 million). The cash conversion rate (free cash flow relative to profit) soared to 113% (previous year: 96%) due to the good result and excluding the non-cash effects from portfolio adjustment and is thus even above the target range. In view of the company’s very good performance, the Supervisory Board of Knorr-Bremse AG renewed the contract of CEO Marc Llistosella by five years at the end of January 2025, thus strengthening continuity on the Group’s Executive Board. Order intake and order book remain high Customer demand, especially in the Rail Division, remained strong in the past fiscal year. Order intake was almost at the prior-year level, falling by just –0.8% to € 8,186 million (previous year: € 8,252 million). The order book reached a new all-time high of € 7,182 million as of December 31, 2024, rising year on year by 1.4% (organically by 3.8%) (previous year: € 7,082 million), thus providing a very good springboard for the current fiscal year 2025 and beyond. Historic highs in the Rail Division; Truck Division posts an improved double-digit return despite the economic crisis The Rail Vehicle Systems Division (RVS) again demonstrated its economic strength – also thanks to a resurgence in passenger numbers – both in the OE and the aftermarket segments. The performance of the Rail division thus contributed substantially to Knorr-Bremse’s good overall result. Order intake rose significantly to € 4,440 million (previous year: € 4,043 million) The order book increased to € 5,352 million (December 31, 2023: € 5,132 million) Revenues surpassed the € 4 billion mark for the first time, reaching a record level of € 4,044 million (previous year: € 3,748 million) Operating EBIT improved sharply by 18% to € 630 million (previous year: € 536 million) The operating EBIT margin increased to 15.6% (previous year: 14.3%) The Commercial Vehicle Systems Division (CVS) had to contend with massive market headwinds. Despite the expected difficult market environment in the commercial vehicle industry in the major regions (Europe, North America and in China), the Truck Division proved robust in the past fiscal year and achieved remarkable results under these circumstances: Order intake amounted to € 3,748 million (previous year: € 4,212 million) The order book was € 1,832 million as of December 31, 2024 (December 31, 2023: € 1,952 million) Revenues remained below the figure for fiscal year 2023 at € 3,842 million for market-related reasons (previous year: € 4,180 million) Operating EBIT only declined slightly by just under 4% to € 401 million (previous year: € 417 million) The operating EBIT margin even bucked the market trend, improving to 10.4% (previous year: 10.0%) Portfolio adjustment fully on track: more than 60% of the revenue volume from the planned sales already achieved at an early stage In the past fiscal year, Knorr-Bremse made important progress in actively optimizing its portfolio by focusing on core competencies and performance. Four sales were successfully closed since the beginning of 2024: Kiepe Electric from the RVS Division and Safety Direct, GT Emission Systems, and R.H. Sheppard from the CVS Division. As a result, more than 60% of the revenue volume targeted for sale by 2026 has already been achieved. The acquisition of KB Signaling in September opens up new opportunities for Knorr-Bremse in the North American market. The successful entry into the attractive and high-margin signaling technology business in the Rail Division (control, command, and signaling (CCS)) means Knorr-Bremse can push ahead with creating its own value added and generate sustainable growth with new and digital solutions. The company is also making progress in implementing structural improvements. The clear structure of global responsibilities, the prioritization of projects, or efficient global controlling are just some of the measures that significantly support the goal of improving margins under the BOOST 2026 program. Furthermore, additional efficiency measures, such as expanding global shared services or strengthening sites with better cost structures, will also increase Knorr-Bremse’s profitability sustainably in the medium term. Guidance for 2025 Assuming that exchange rates remain stable and that the geopolitical and macroeconomic environments remain mostly stable, the company expects revenues between € 8,100 million and € 8,400 million, an operating EBIT margin of 12.5% to 13.5%, and free cash flow between € 700 million and € 800 million for the 2025 fiscal year. In order to remain strategically well positioned after 2026 and to keep on growing profitably in the long term, potential restructuring costs of up to € 50 million in 2025, among other things to optimize its global production footprint, could occur. The figures presented here are preliminary and unaudited. The full annual financial statements and annual report will be published on www.knorr-bremse.com on March 20, 2025. A video recording of the annual press conference with CEO Marc Llistosella and CFO Frank Weber on the preliminary figures for the 2024 fiscal year will be provided in the Knorr-Bremse Newsroom section of our website. A webcast for investors with CEO Marc Llistosella and CFO Frank Weber on the preliminary figures for the 2024 fiscal year will be held today at 1 p.m. (CET). The presentations are available on our website at www.knorr-bremse.com.   Media Contacts: Alexander Stechert-Mayerhöfer | Senior Vice President Corporate Communications | Knorr-Bremse AG T +49 89 3547 1941; E alexander.stechert-mayerhoefer@knorr-bremse.com 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   Knorr-Bremse Group Key Performance Indicators:

Group:	Full year			4th quarter
	2024	2023		2024	2023
	€ million	€ million	?	€ million	€ million	?
Order intake	8,186.0	8,252.2	-0.8%	2,003.7	2,036.1	-1.6%
Order book (Dec. 31)	7,181.5	7,082.3	+1.4%	7,181.5	7,082.3	+1.4%
Revenues	7,883.2	7,925.6	-0.5%	1,986.5	2,069.4	-4.0%
EBIT	910.7	869.9	+4.7%	216.5	247.9	-12.7%
EBIT margin	11.6%	11.0%	+60 bp	10.9%	12.0%	-110 bp
Operating EBIT	966.4	893.1	+8.2%	241.6	254.5	-5.1%
Operating EBIT margin	12.3%	11.3%	+100 bp	12.2%	12.3%	-10 bp
Free cash flow	729.8	551.7	+32.3%	481.9	486.8	-1.0%
Capital expenditure (before IFRS 16 and acquisitions)	349.6	368.5	-5.1%	133.2	146.4	-9.0%
R&D costs as % of revenues	7.2%	6.9%	+30 bp	7.7%	7.8%	-10 bp
Net income	477.3	576.2	-17.2%	24.8	178.0	-86.1%
Earnings per share (in EUR)	2.76	3.43	-19.5%	0.11	1.13	-90.3%
Employees (Dec. 31; head count)	32,549	33,319	-2.3%

 

Divisions:	Full year			4th quarter
	2024	2023		2024	2023
	€ million	€ million	?	€ million	€ million	?
RVS
Order intake	4,439.9	4,042.5	+9.8%	1,116.8	998.4	+11.9%
Order book	5,351.7	5,132.3	+4.3%	5,351.7	5,132.3	+4.3%
Revenues	4,043.5	3,747.5	+7.9%	1,067.9	1,002.0	+6.6%
EBIT	625.2	531.9	+17.6%	158.7	146.4	+8.3%
EBIT margin	15.5%	14.2%	+130 bp	14.9%	14.6%	+30 bp
Operating EBIT	629.8	535.6	+17.6%	167.1	148.2	+12.7%
Operating EBIT margin	15.6%	14.3%	+130 bp	15.6%	14.8%	+80 bp
CVS
Order intake	3,748.4	4,212.2	-11.0%	887.3	1,038.6	-14.6%
Order book	1,831.6	1,951.7	-6.2%	1,831.6	1,951.7	-6.2%
Revenues	3,841.8	4,180.2	-8.1%	919.3	1,067.9	-13.9%
EBIT	349.9	398.0	-12.1%	70.4	112.8	-37.6%
EBIT margin	9.1%	9.5%	-40 bp	7.7%	10.6%	-290 bp
Operating EBIT	401.1	417.5	-3.9%	87.1	117.7	-26.0%
Operating EBIT margin	10.4%	10.0%	+40 bp	9.5%	11.0%	-150 bp

  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.