Knorr Bremse AG
XETRA:KBX
Knorr Bremse AG
Knorr-Bremse AG, a stalwart in the field of braking systems, has evolved into an industrial powerhouse, deeply embedded in both the rail and commercial vehicle sectors. Established in 1905, its legacy began with the pioneering work of Georg Knorr in Germany, where he sought to revolutionize the braking mechanisms for trains. Today, the company stands as a beacon of engineering excellence, capitalizing on its century-long expertise to innovate and enhance safety technologies across its expansive portfolio. As a leading supplier, Knorr-Bremse integrates advanced control systems, intelligent electronics, and environmentally friendly solutions, ensuring smoother and safer journeys for millions of commuters and freight operators worldwide.
The company’s financial robustness is largely derived from its strategic focus on diversification and technological superiority. In the rail division, Knorr-Bremse designs and manufactures a spectrum of products ranging from braking systems to on-board digital solutions, catering to the demand for efficient and fail-safe railways. Meanwhile, in the commercial vehicle sector, Knorr-Bremse supplies systems that enhance vehicle safety, comfort, and efficiency, including innovative driver assistance technologies and automated driving functions. By continuing to invest in R&D and adapting to trends in digitization and sustainability, Knorr-Bremse ensures its products remain indispensable to its global clientele, driving steady revenue streams and maintaining its position as an industrial leader within the mobility sector.
Knorr-Bremse AG, a stalwart in the field of braking systems, has evolved into an industrial powerhouse, deeply embedded in both the rail and commercial vehicle sectors. Established in 1905, its legacy began with the pioneering work of Georg Knorr in Germany, where he sought to revolutionize the braking mechanisms for trains. Today, the company stands as a beacon of engineering excellence, capitalizing on its century-long expertise to innovate and enhance safety technologies across its expansive portfolio. As a leading supplier, Knorr-Bremse integrates advanced control systems, intelligent electronics, and environmentally friendly solutions, ensuring smoother and safer journeys for millions of commuters and freight operators worldwide.
The company’s financial robustness is largely derived from its strategic focus on diversification and technological superiority. In the rail division, Knorr-Bremse designs and manufactures a spectrum of products ranging from braking systems to on-board digital solutions, catering to the demand for efficient and fail-safe railways. Meanwhile, in the commercial vehicle sector, Knorr-Bremse supplies systems that enhance vehicle safety, comfort, and efficiency, including innovative driver assistance technologies and automated driving functions. By continuing to invest in R&D and adapting to trends in digitization and sustainability, Knorr-Bremse ensures its products remain indispensable to its global clientele, driving steady revenue streams and maintaining its position as an industrial leader within the mobility sector.
Strong Results: Knorr-Bremse delivered robust financial results for 2025, achieving all key targets and reporting record free cash flow.
Margin Expansion: Operating EBIT margin rose to 13%, up 70 basis points, driven by efficiency initiatives and strong Rail division performance.
BOOST Strategy: Phase 1 of cost and efficiency measures is nearly complete, with Phase 2 focusing on margin-accretive growth and expansion.
Solid Outlook: 2026 guidance targets revenues of EUR 8–8.3 billion, 14% EBIT margin, and EUR 750–850 million free cash flow; guidance is in line with existing midterm targets.
Portfolio Shifts: The company is divesting lower-margin businesses and acquiring higher-margin ones, aiming for sustainable, profitable growth.
Cash Generation: Free cash flow reached a record EUR 790 million, with a cash conversion rate of 131%.
Rail Division Strength: Rail division hit its midterm margin target a year early and now makes up 55% of group revenue.
Truck Outlook: Truck division showed resilience in a weak North American market, maintaining a 10.4% EBIT margin.
AI & Digitalization: Accelerating digital and AI-driven initiatives, especially in service platforms and internal process automation.
Order Book: The order backlog and intake remain strong, supporting future growth.
