- Operating EBIT up at € 498 million, with higher operating EBIT margin of 12.6%
- Sustained high level of demand in the first half of 2025: order intake at € 4.5 billion, order book close to record level at € 7.3 billion
- Revenues at approximately € 4 billion
- Free cash flow up significantly year-on-year at € 160 million
- Full-year operating EBIT and cash flow guidance for 2025 confirmed; expected revenue range adjusted due to currency effects solely
Knorr-Bremse AG, the global market leader for braking systems and a leading supplier of other safety-critical rail and commercial vehicle systems, today (31 July) published its results for the first half of 2025.
Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “We lifted our operating EBIT margin by 30 basis points in the first half of the year to 12.6% despite the challenging market conditions – a fantastic team achievement. In addition, the encouraging increase in the free cash flow to € 160 million, which we achieved through working capital measures and thanks to our strong performance, is testament to our financial strength. We expect the German government’s investment program, among other things, to have a positive effect on the development of business going forward. We are also confident that we will be able to compensate for the announced US tariffs.”
Geopolitical and economic challenges remained dominant forces in the first half of 2025, leading to market uncertainty in all regions worldwide. Knorr-Bremse continued to demonstrate a high degree of resilience and flexibility in this environment with its decentralized structure. Compared with the first half of 2024, order intake was up by 5.8% to € 4,484 million (H1/2024: € 4,239 million). This increase is due to three factors in particular: rising demand in the rail vehicle market, considerable growth in Asia and North America as well as strong performance at the acquired U.S.-based company KB Signaling, which more than compensated for the disposals of business units and currency effects.
At € 7,326 million at the end of the first half year (June 30, 2024: € 6,848 million), the order book nearly matched the record level achieved in the prior quarter (€ 7,443 million). This is equivalent to an increase of 7.0% compared with the previous year. Despite challenging market conditions, consolidated revenues were just shy of the prior-year level at € 3,957 million (H1/2024: € 3,987 million), with the substantial increase in revenues in the rail vehicle business almost fully offsetting the sharper decline in sales in the commercial vehicle business and effects from disposals of business units.
Operating EBIT recorded growth of 1.6% to € 498 million (H1/2024: € 490 million), mainly underpinned by the Rail Vehicle Systems division, which continues to benefit from the positive development in the Asia-Pacific market in particular. The operating EBIT margin increased to 12.6% (H1/2024: 12.3%). The strong operational performance and ongoing working capital optimization gave the free cash flow a significant boost to € 160 million (H1/2024: € 64 million).
Overview of H1 2025 Developments in Both Divisions
Rail Vehicle Systems Division (RVS):
- The order intake increased significantly by 18.0% year-on-year to € 2,600 million (H1/2024: € 2,202 million), buoyed by brisk demand in all regions and underpinned by KB Signaling.
- The order book also saw considerable growth of 13.8%, rising to € 5,555 million (June 30, 2024: € 4,881 million).
- Revenues rose by 9.5% to € 2,169 million (H1/2024: € 1,981 million).
- Operating EBIT improved by 14.4% to € 347 million (H1/2024: € 304 million).
- As a result, the operating EBIT margin rose by 70 basis points to 16.0% (H1/2024: 15.3%).
Commercial Vehicle Systems Division (CVS):
- The order intake stood at € 1,884 million (H1/2024: € 2,038 million).
- The order book amounted to € 1,772 million (June 30, 2024: € 1,969 million).
- As expected, revenues declined to € 1,789 million (H1/2024: € 2,007 million) due to market and currency factors as well as to the deconsolidation of the investments in GT and Sheppard.
- Operating EBIT fell to € 176 million only (H1/2024: € 223 million) on the back of pinpointed countermeasures.
- The operating EBIT margin increased robustly to 9.9% (H1/2024: 11.1%).
Guidance
Knorr-Bremse confirms its operating EBIT and cash flow guidance for the 2025 fiscal year. The expected revenue range has been adjusted due to currency translation effects solely. Compared to the previously assumed FX level of February 2025, the euro has strengthened considerably against many other currencies. The guidance continues to be based on the assumption of stable geopolitical and macroeconomic environments and no major impacts from possible tariffs. There is unchanged potential for restructuring in a number of regions which will lead to costs of approximately € 75 million in 2025. As a result, the company now expects revenues between € 7,800 million and € 8,100 million (previously € 8,100 million and € 8,400 million) as well as an unchanged operating EBIT margin between 12.5% and 13.5% and unchanged free cash flow between € 700 million and € 800 million.
The interim report for the January to June 2025 period 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).
Key Figures of Knorr-Bremse Group
| Group | Half year 2025 EUR million | Half year 2024 EUR million | Δ | 2nd quarter 2025 EUR million | 2nd quarter 2024 EUR million | Δ |
|---|---|---|---|---|---|---|
| Order intake | 4,484 | 4,239 | +5.8% | 2,108 | 2,127 | -0.9% |
| Order book (June 30) | 7,326 | 6,848 | +7.0% | 7,326 | 6,848 | +7.0% |
| Revenues | 3,957 | 3,987 | -0.8% | 1,999 | 2,013 | -0.7% |
| EBIT | 432 | 475 | -9.2% | 227 | 238 | -4.5% |
| EBIT margin | 10.9% | 11.9% | -100 bp | 11.4% | 11.8% | -40 bp |
| Operating EBIT | 498 | 490 | +1.6% | 262 | 252 | +4.0% |
| Operating EBIT margin | 12.6% | 12.3% | +30 bp | 13.1% | 12.5% | +60 bp |
| Free cash flow | 160 | 64 | +151.4% | 146 | 158 | -8.1% |
| Capital expenditure (before IFRS 16 & acquisitions) | 115 | 136 | -15.2% | 63 | 65 | -2.9% |
| R&D costs in % of revenues | 6.9% | 7.2% | -30 bp | 6.6% | 7.3% | -70 bp |
| Earnings per share (in EUR) | 1.70 | 1.85 | -8.1% | 0.87 | 0.90 | -3.3% |
Key Figures for the Knorr-Bremse Group’s divisions
| Half year 2025 EUR million | Half year 2024 EUR million | Δ | 2nd quarter 2025 EUR million | 2nd quarter 2024 EUR million | Δ | |
|---|---|---|---|---|---|---|
| RVS division | ||||||
| Order Intake | 2,600 | 2,202 | +18.0% | 1,288 | 1,141 | +12.9% |
| Order book (June 30) | 5,555 | 4,881 | +13.8% | 5,555 | 4,881 | +13.8% |
| Revenues | 2,169 | 1,981 | +9.5% | 1,104 | 1,017 | +8.6% |
| EBIT | 308 | 303 | +1.7% | 160 | 158 | +1.4% |
| EBIT margin | 14.2% | 15.3% | -110 bp | 14.5% | 15.6% | -110 bp |
| Operating EBIT | 347 | 304 | +14.4% | 182 | 158 | +14.9% |
| Operating EBIT margin | 16.0% | 15.3% | +70 bp | 16.5% | 15.6% | +90 bp |
| CVS division | ||||||
| Order Intake | 1,884 | 2,038 | -7.5% | 820 | 987 | -16.9% |
| Order book (June 30) | 1,772 | 1,969 | -10.0% | 1,772 | 1,969 | -10.0% |
| Revenues | 1,789 | 2,007 | -10.9% | 895 | 997 | -10.2% |
| EBIT | 156 | 209 | -25.4% | 85 | 98 | -13.0% |
| EBIT margin | 8.7% | 10.4% | -170 bp | 9.5% | 9.8% | -30 bp |
| Operating EBIT | 176 | 223 | -20.8% | 92 | 112 | -17.8% |
| Operating EBIT margin | 9.9% | 11.1% | -120 bp | 10.3% | 11.2% | -90 bp |