Knorr-Bremse delivers strong second-quarter results and launches “Growth Beyond” strategy

Summary

Primary objective of BOOST achieved in Q2 2026 with operating EBIT margin of 14.2%
Order intake lifted to € 2.2 billion, record order book of € 7.9 billion
Revenues sharply higher at € 2.1 billion – organic year-on-year revenue growth of 6.4%
Earnings per share up by over 24% at € 1.08
Free cash flow increases by almost 80% to € 262 million
Guidance for fiscal 2026 raised
Growth Beyond: New mid-term targets for 2030 released

Knorr-Bremse today published its preliminary results for the second quarter and first half of 2026. The figures underscore the strong performance delivered by both divisions. The global market and technology leader in braking systems and a leading provider of other innovative solutions for the rail and commercial vehicle industries recorded significant revenue and profitability growth versus the prior-year period.

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Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG: “We delivered. The BOOST strategy program has enabled us to make substantial progress in transforming our company. We are well on track to achieve our financial targets for 2026. Our outstanding results show that Knorr-Bremse is in a stronger position today than it was three years ago: more profitable and financially more robust – with clear structures, greater efficiency and ideal conditions for sustainable growth. We have embedded BOOST across the organization, establishing a solid foundation for our forthcoming growth initiative, “Growth Beyond”. We will continue to strengthen our core business and also selectively tap into new areas of growth. As the global market leader, we have a clear ambition: By 2030, we aim to generate approximately € 10 billion in revenue, increase our operating EBIT margin to around 16%, maintain a cash conversion rate above 90%, and deliver a return on capital employed of over 25%.”

Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “Our hard work is paying off. We once again demonstrated our strength. With an operating EBIT margin of 14.2% in the second quarter, we have already exceeded our primary BOOST objective of achieving an operating EBIT margin of above 14% by the end of 2026. Our free cash flow also increased significantly, reaching € 262 million. This achievement reflects our strict cost management, structural improvements, and substantial efficiency gains. Our record order book of € 7.9 billion provides a solid foundation for continued business growth. Our updated mid-term guidance reinforces our commitment to delivering sustained profitable growth from a position of strength.”

Impressive second quarter drives half-year results

The outstanding second-quarter performance of both divisions was a key driver of the excellent first-half results overall. The Rail division further accelerated its organic growth while delivering strong profitability. The Truck division, meanwhile, benefited primarily from improved cost structures, supported by rising demand. Higher revenues driven by economies of scale had a particularly positive impact on earnings.

Overall, the Knorr-Bremse Group continued to experience strong demand in the first half of 2026, with order intake of € 4,431 million (H1/2025: € 4,484 million). The order book reached a new record high of € 7,887 million as of the end of the first half-year, an increase of 7.7% (June 30, 2025: € 7,326 million). At € 4,080 million, consolidated revenues were up 3.1% on the prior-year figure of € 3,957 million thanks to a slight increase in both divisions. Adjusted for currency effects, revenues would in fact have been 2.6% higher.

The positive business development is also clearly reflected in our profitability. Operating EBIT improved significantly, rising by 13.7% to € 566 million (H1/2025: € 498 million). Compared with the prior-year period, the operating EBIT margin rose by as much as 130 basis points to 13.9% (H1/2025: 12.6%). Key factors behind this positive trend were the significant improvement in Truck division earnings and a substantial increase in Rail division EBIT.

The strong operational performance combined with the significant improvement in working capital gave the free cash flow a significant boost to € 294 million (H1/2025: € 160 million).

Both divisions deliver a strong half-year performance

Rail:

The order intake remained at a high level at € 2,399 million (H1/2025: € 2,600 million)
The order book rose by 6.4% to € 5,910 million (June 30, 2025: € 5,555 million)
Revenues rose slightly to € 2,245 million (H1/2025: € 2,169 million)
Operating EBIT improved significantly by 10.3% to € 383 million (H1/2025: € 347 million)
As a result, the operating EBIT margin rose significantly by 110 basis points to 17.1% (H1/2025: 16.0%)

Truck:

The order intake increased by 7.5% to € 2,026 million in the first half of the year (H1/2025: € 1,884 million)
The order book rose significantly by 11.7% to € 1,979 million (June 30, 2025: € 1,772 million)
Revenues improved by 2.7% to € 1,837 million (H1/2025: € 1,789 million)
Operating EBIT rose by a substantial 21.5% to € 214 million (H1/2025: € 176 million)
The operating EBIT margin improved to 11.7% as a result (H1/2025: 9.9%).

From successful transformation to sustainable growth

Through its BOOST strategy program, Knorr-Bremse has delivered significant improvements and achieved important milestones over the past three years, laying the foundation for a new level of entrepreneurial freedom.

Also, an extensive portfolio restructuring was part of BOOST. In this context, Knorr-Bremse concluded an agreement to sell its global HVAC business unit (heating, ventilation, and air conditioning systems for trains), Merak, with OpenGate Capital, on July 28, 2026. The closing of the transaction is subject to customary closing conditions and regulatory approvals and is expected by the end of calendar year 2026.

With its new Growth Beyond initiative, Knorr-Bremse is now focusing squarely on profitable growth. To achieve this, the company will further strengthen its core business and selectively tap into new areas of growth where it can leverage its core industrial competencies in safety, quality, and reliability. By 2030, Knorr-Bremse aims to generate approximately € 10 billion in revenue with an operating EBIT margin of around 16%, maintain a cash conversion rate above 90%, and deliver a return on capital employed of over 25%.

Guidance for 2026 raised

Based on a strong first half of 2026 and a positive outlook for the remainder of the year, Knorr-Bremse is raising its operating guidance for fiscal 2026. The assumption remains 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. The company now expects revenues of between € 8,100 million and € 8,300 million (previously: € 8,000 million to € 8,300 million), an operating EBIT margin of 14.0% to 14.5% (previously: around 14%), and free cash flow of € 750 million to € 850 million.

The full half-year report for 2026 will be released as planned on July 30, 2026 and will be available at www.knorr-bremse.com. Notes to and reconciliations with the financial indicators used can be found in the 2025 Annual Report of Knorr-Bremse AG (available under Investor Relations/Annual Report).

Key Figures of Knorr-Bremse Group

Group	Half year 2026 EUR million	Half year 2025 EUR million	Δ	2nd quarter 2026 EUR million	2nd quarter 2025 EUR million	Δ
Order intake	4,431	4,484	-1.2%	2,202	2,108	+4.5%
Order book (June 30)	7,887	7,326	+7.7%	7,887	7,326	+7.7%
Revenues	4,080	3,957	+3.1%	2,143	1,999	+7.2%
EBIT	525	432	+21.6%	280	227	+23.1%
EBIT margin	12.9%	10.9%	+200 bp	13.1%	11.4%	+170 bp
Operating EBIT	566	498	+13.7%	305	262	+16.5%
Operating EBIT margin	13.9%	12.6%	+130 bp	14.2%	13.1%	+110 bp
Free cash flow	294	160	+82.9%	262	146	+79.9%
Capital expenditure (before IFRS 16 & acquisitions)	132	115	+14.0%	70	63	+11.8%
R&D costs in % of revenues	6.8%	6.9%	-10 bp	6.6%	6.6%	+/–0 bp
Earnings per share (in EUR)	2.03	1.70	+19.4%	1.08	0.87	+24.1%

Key Figures for the Knorr-Bremse Group's divisions

	Half year 2026 EUR million	Half year 2025 EUR million	Δ	2nd quarter 2026 EUR million	2nd quarter 2025 EUR million	Δ
RVS division
Order Intake	2,399	2,600	-7.7%	1,136	1,288	-11.8%
Order book (June 30)	5,910	5,555	+6.4%	5,910	5,555	+6.4%
Revenues	2,245	2,169	+3.5%	1,185	1,104	+7.3%
EBIT	352	308	+14.3%	190	160	+18.8%
EBIT margin	15.7%	14.2%	+150 bp	16.1%	14.5%	+160 bp
Operating EBIT	383	347	+10.3%	208	182	+14.4%
Operating EBIT margin	17.1%	16.0%	+110 bp	17.5%	16.5%	+100 bp
CVS division
Order Intake	2,026	1,884	+7.5%	1,062	820	+29.5%
Order book (June 30)	1,979	1,772	+11.7%	1,979	1,772	+11.7%
Revenues	1,837	1,789	+2.7%	959	895	+7.1%
EBIT	210	156	+34.4%	111	85	+30.4%
EBIT margin	11.4%	8.7%	+270 bp	11.6%	9.5%	+210 bp
Operating EBIT	214	176	+21.5%	114	92	+23.7%
Operating EBIT margin	11.7%	9.9%	+180 bp	11.8%	10.3%	+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 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.