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EQS-News: Knorr-Bremse Aktiengesellschaft
/ Key word(s): Quarter Results/Quarterly / Interim Statement
Knorr-Bremse shows its strength and boosts profitability and cash flow
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.
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:
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 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 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 .
Media Contacts: Alexander Stechert-Mayerhöfer | Senior Vice President Corporate Communications | Knorr-Bremse AG T 1; E Claudia Züchner | Spokeswoman, Financial Communications | Knorr-Bremse AG T 2; E
Investor Relations contact: Andreas Spitzauer | Head of Investor Relations | Knorr-Bremse AG T 310; E
Knorr-Bremse Group Key Performance Indicators:
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.
20.02.2025 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group. |
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| Language: | English |
| Company: | Knorr-Bremse Aktiengesellschaft |
| Moosacher Str. 80 | |
| 80809 Munich | |
| Germany | |
| Phone: | |
| E-mail: | |
| Internet: | -bremse.com |
| ISIN: | DE000KBX1006 |
| WKN: | KBX100 |
| Indices: | MDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Vienna Stock Exchange (Vienna MTF) |
| EQS News ID: | 2088907 |
| End of News | EQS News Service |
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2088907 20.02.2025 CET/CEST
