Knorr-Bremse delivers another strong quarter

Summary

Third quarter of 2026 sees significant earnings increase, with operating EBIT margin rising to 14.6% (Q3/2025: 13.3%)
Second-highest quarterly operating result (operating EBIT) in the history of the company achieved at € 299 million
Sustained strong demand: order intake in the Group rises to over € 2 billion; order book at € 7.9 billion
Consolidated revenues improve 9% to € 2.05 billion
Free cash flow increases by almost 50% to € 238 million
Knorr-Bremse’s technology leadership and innovation on display at the leading trade fairs InnoTrans, IAA and Automechanika
Success of the BOOST strategy program provides an excellent foundation for the growth initiative “GROWTH BEYOND”
Full-year 2026 operating outlook expected to be at the upper end of the guidance range

Knorr-Bremse AG continues to drive successful business growth. The global market and technology leader for braking systems and a leading supplier of other innovative solutions for the rail and commercial vehicle industry has achieved its highest quarterly profitability in five years.

Knorr-Bremse_Q3-2026

Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG: “Knorr-Bremse continues to deliver, even in a challenging environment. We achieved the second-highest quarterly result in our company’s history. This demonstrates the great success of our BOOST strategy program, which is now seamlessly transitioning into our growth initiative “Growth Beyond”. Over the past three years, we have established a strong foundation for the next phase of our development, in which we will focus on innovation, uncompromising quality, and solutions that meet the needs of our customers worldwide. The enthusiastic response to our presentations at the leading trade shows this year – InnoTrans, IAA, and Automechanika – shows that we as a global market and technology leader understand our business like nobody else.”

Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “Our excellent quarterly operating results reaffirm our expectation for the full year. In the third quarter, we not only achieved the second-highest operating EBIT in our more than 120-year history, at € 299 million, but also recorded our highest operating EBIT margin in more than five years. We have clearly achieved the target we set for ourselves under BOOST for 2026. Consistent execution of our efficiency measures, disciplined working capital management, and our robust operating performance are all helping to increase our financial flexibility.”

The order intake in the third quarter improved year-on-year to € 2,053 million (Q3 2025: € 1,956 million). Performance varied across our divisions. The Rail Division, which generally sees project-driven fluctuations in order intake throughout the year, recorded order intake of € 1,045 million, below the prior-year level by around € 130 million. For the fourth quarter of 2026, Knorr-Bremse expects a partial recovery in order intake in the Rail Division and anticipates order intake of around € 1.2 billion once again. By contrast, order intake in the Truck Division significantly exceeded the prior-year level, rising by more than € 230 million to € 1,018 million, driven by the market recovery in North America and Europe. The Group’s order book increased by 7.0% to € 7,883 million as at September 30, 2026 (September 30, 2025: € 7,368 million). Consolidated revenues improved by 9.0% compared with the third quarter of 2025 to € 2,051 million (Q3/2025: € 1,883 million).

The Group’s operating EBIT rose by a significant 19.1% to € 299 million (Q3 2025: € 251 million). The operating EBIT margin improved accordingly from 13.3% in the prior-year period to 14.6%, a significant increase of 130 basis points. The free cash flow rose by nearly 50% to € 238 million (Q3/2025: € 159 million). Rail contributed to this primarily through increased revenue and efficiency gains. The noticeable market recovery in the Truck division (particularly in North America) and the effects of cost-cutting measures had a positive impact here.

Developments in both divisions in the third quarter of 2026:

Rail:

Order intake amounted to € 1,045 million (Q3/2025: €1,173 million)
The order book rose to € 5,858 million (September 30, 2025: € 5,659 million)
Revenues were up 6.1% to € 1,114 million (Q3/2025: € 1,050 million)
Operating EBIT improved by a solid 9.9% to € 197 million (Q3/2025: € 179 million)
The operating EBIT margin increased to 17.7% (Q3/2025: 17.0%)

Truck:

Order intake was up significantly on the prior-year level at € 1,018 million (Q3/2025: € 783 million)
The order book as of September 30, 2026 amounted to € 2,028 million (September 30, 2025: € 1,710 million)
Revenues were up 12.5% to € 938 million (Q3/2025: € 833 million)
Operating EBIT rose by a significant 31.9% to € 116 million (Q3/2025: € 88 million)
Profitability improved substantially as a result to 12.3% (Q3/2025: 10.5%)

Full-year 2026 operating outlook expected to be at the upper end of the guidance range

Knorr-Bremse is confirming its full-year operating guidance for 2026 and expects that both revenues and free cash flow will come in at the upper end of the range in each case. This guidance is based on the assumption that the crisis in the Middle East will not escalate or persist, particularly with regard to supply chain disruptions. In addition to the effects of the acquisition of duagon, the guidance is based on the company’s current portfolio. Knorr-Bremse expects revenues of between € 8,100 million and € 8,300 million, an operating EBIT margin of 14.0% to 14.5% and a free cash flow of between € 750 million and € 850 million.

The full quarterly statement with all financial indicators will be published on the Knorr-Bremse AG website on October 29, 2026 as scheduled. Notes to and reconciliations with the financial indicators used can be found in the 2025 Annual Report of Knorr-Bremse AG.

Key Figures of Knorr-Bremse Group

Group	3rd quarter 2026 EUR million	3rd quarter 2025 EUR million	Δ	Jan-Sep 2026 EUR million	Jan-Sep 2025 EUR million	Δ
Order intake	2,053	1,956	+4.9%	6,484	6,440	+0.7%
Order book September 30)	7,883	7,368	+7.0%	7,883	7,368	+7.0%
Revenues	2,051	1,883	+9.0%	6,132	5,839	+5.0%
EBIT	281	218	+28.5%	806	650	+23.9%
EBIT margin	13.7%	11.6%	+210 bp	13.1%	11.1%	+200 bp
Operating EBIT	299	251	+19.1%	865	749	+15.5%
Operating EBIT margin	14.6%	13.3%	+130 bp	14.1%	12.8%	+130 bp
Free cash flow	238	159	+49.8%	531	319	+66.5%
Capital expenditure (before IFRS 16 & acquisitions)	48	78	-38.8%	180	194	-7.3%
R&D costs in % of revenues	6.9%	6.8%	+10 bp	6.8%	6.9%	-10 bp
Earnings per share (in EUR)	1.09	0.89	+22.5%	3.11	2.59	+20.1%

Key Figures for the Knorr-Bremse Group's divisions

	3r quarter 2026 EUR million	3rd quarter 2025 EUR million	Δ	Jan-Sep 2026 EUR million	Jan-Sep 2025 EUR million	Δ
RVS division
Order Intake	1,045	1,173	-10.9%	3,444	3,773	-8.7%
Order book (September 30)	5,858	5,659	+3.5%	5,858	5,659	+3.5%
Revenues	1,114	1,050	+6.1%	3,359	3,219	+4.4%
EBIT	184	163	+13.0%	537	471	+13.9%
EBIT margin	16.5%	15.5%	+100 bp	16.0%	14.6%	+140 bp
Operating EBIT	197	179	+9.9%	580	526	+10.2%
Operating EBIT margin	17.7%	17.0%	+70 bp	17.3%	16.4%	+90 bp
CVS division
Order Intake	1,018	783	+30.1%	3,044	2,667	+14.1%
Order book (September 30)	2,028	1,710	+18.6%	2,028	1,710	+18.6%
Revenues	938	833	+12.5%	2,775	2,622	+5.8%
EBIT	110	72	+51.9%	319	228	+39.9%
EBIT margin	11.7%	8.7%	+300 bp	11.5%	8.7%	+280 bp
Operating EBIT	116	88	+31.9%	330	264	+25.0%
Operating EBIT margin	12.3%	10.5%	+180 bp	11.9%	10.1%	+180 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 innovative solutions for the rail and commercial vehicle industries. Knorr-Bremse’s products make a decisive contribution to greater safety and energy efficiency on rail tracks and roads around the world. About 30,000 employees at over 100 locations in 30 countries develop and produce innovative solutions and services that meet the highest technological standards. In 2025, Knorr-Bremse’s two divisions together generated revenues of approximately € 7.8 billion. For over 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.