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

Key Figures for the Knorr-Bremse Group's divisions

The transaction involves OpenGate Capital acquiring all of Merak’s business activities and its approximately 1,500 employees, who are primarily located in Europe, North America, China, and Australia. The closing of the transaction is subject to customary closing conditions and regulatory approvals and is expected by the end of calendar year 2026.

Perella Weinberg served as exclusive financial adviser to Knorr-Bremse.

Knorr-Bremse Circular Technology Award: Recognition for Four Visionary Startups

More than 50 startups applied and submitted their innovative ideas. The four best have now been honored. In the “Automated Disassembly” category, R3 Robotics from Luxembourg was honored for its AI-controlled robotic lines for the automated and safe disassembly of batteries, and Hiro Robotics from Italy for its non-destructive, robot-based dismantling of electronic waste. Both startups are developing key technologies in this field to implement remanufacturing economically on a large scale. In the “Critical Raw Material Recovery” category, DEScycle from the UK was honored for its innovative, low-emission ionometallurgy process for the highly efficient recovery of metals from electronic waste, and HyProMag from Germany was recognized for its unique hydrogen-based recycling process for high-performance magnets. Both winners are making a decisive contribution to reducing dependencies in global supply chains and securing a sustainable supply of raw materials for industrial manufacturing.

The four winning startups will each receive 25,000 euros in prize money; in addition, a proof-of-concept budget of up to 150,000 euros is available twice to jointly translate the most promising approaches into concrete industrial applications.

Dr. Matthias Ballweg, Co-Founder of CIRCULAR REPUBLIC: “Anyone serious about raw material sovereignty in Europe must invest in the industrialization of the circular economy. This means automated disassembly and intelligent recycling. Thanks to these technologies, the circular economy is becoming a business model on a large scale—for startups, for companies, and for Europe. Europe is already taking a leading role globally in this area and is building new export hits based on these technologies.”

Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “The first quarter showed, once again, how resilient our business is. We achieved the best Q1 operating EBIT margin (13.5%) in five years in a persistently difficult truck market. Our excellent return on capital employed (ROCE) of 22% underscores that we are consistently investing in the right areas. Together with our very solid financial basis overall, we created excellent conditions to successfully drive Knorr-Bremse forward in demanding markets.”

Globally, the political and economic environment remains uncertain and unstable. Knorr-Bremse is successfully navigating current challenges with discipline and remarkable resilience. This is borne out in the strong set of results for the first quarter, which show a substantial improvement in profitability.

Demand remains robust: Order intake maintained a high level in the first quarter of 2026 at € 2,229 million in a currently uncertain market environment, particularly in the Truck segment (Q1/2025: € 2,376 million). The order book rose to € 7,813 million as of the end of the quarter (March 31, 2025: € 7,443 million), an increase of as much as 5.0%. Despite significant exchange rate effects as compared with the previous year, consolidated revenues remained largely stable at € 1,937 million (Q1/2025: € 1,958 million); organically, this corresponds to a 2.1% increase in revenues.

Knorr-Bremse recorded a very high level of profitability in particular in the first quarter. Operating EBIT improved to € 261 million. The operating EBIT margin rose by 140 basis points to 13.5% (Q1/2025: 12.1%), reaching the highest Q1 level in five years. Free cash flow amounted to € 32 million (Q1/2025: € 15 million).

Highest Q1 profitability for both divisions in five years.

Rail Vehicle Systems Division (RVS):

• Order intake was robust at € 1,263 million (Q1/2025: € 1,312 million)

• Increasing by 7.3% to € 5,933 million, the order book reached a new all-time high (March 31, 2025: € 5,530 million), mainly on the back of strong development in the Asia-Pacific region and in the U.S. market

• Even including exchange effects, revenues came to € 1,060 million (Q1/2025: € 1,065 million); organically, this corresponds to an improvement of nearly 1%

• Operating EBIT improved to € 175 million compared with the figure for the year-earlier period (Q1/2025: € 166 million)

• At 16.5%, the operating EBIT margin was 90 basis points above the prior-year level (Q1/2025: 15.6%)

Commercial Vehicle Systems Division (CVS)

• Considering the market environment, the order intake was robust at € 964 million (Q1/2025: € 1,065 million)

• The order book as of March 31, 2026 amounted to € 1,882 million (March 31, 2025: € 1,914 million); organically, it rose by a slight 0.7% on the prior-year figure

• Due exclusively to currency factors, revenues of € 878 million remained slightly below the prior-year quarter (Q1/2025: € 894 million), recording strong organic growth of 3.6%

• Operating EBIT improved by a substantial 19.2% to € 101 million (Q1/2025: € 85 million) thanks to rigorous implementation of the BOOST and efficiency measures

• The operating EBIT margin increased equally robustly to 11.5%, a significant increase of 200 basis points (Q1/2025: 9.5%).

Guidance

Knorr-Bremse is confirming its guidance for the 2026 fiscal year. The company generally assumes that the geopolitical and economic backdrop will remain essentially stable. Assuming that the crisis in the Middle East does not escalate or persist, particularly with regard to supply chain disruptions, Knorr-Bremse expects revenues of between € 8,000 million and € 8,300 million for the current year, an operating EBIT margin of around 14% and free cash flow between € 750 million and € 850 million. These figures are based on the assumption that exchange rates will remain essentially stable at February 2026 levels. 

The full quarterly report is 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

Key Figures for the Knorr-Bremse Group's divisions

The index selection is based on the annual S&P Global Corporate Sustainability Assessment (CSA). Only companies that rank among the most sustainable in their respective industries are included in the Best‑in‑Class indices. Knorr‑Bremse significantly improved its performance in this internationally recognized ESG evaluation (Environment, Social and Governance), increasing its score by nine points year on year. As a result, Knorr‑Bremse now ranks among the top five percent of companies worldwide in the ‘Machinery and Electrical Equipment’ industry (as of December 2025).

Dr. Sigrid Nikutta, who had been a member of the Supervisory Board since 2022, decided not to stand for re-election. The shareholders elected Dr. Christian Schlögel as her successor. A recognized digitalization expert, he brings many years of leadership experience in international technology and industrial companies and will strengthen the Supervisory Board, particularly with his expertise in digital transformation, software, and artificial intelligence.

The Annual General Meeting was again held virtually. A total of 89.9% of the share capital of Knorr-Bremse was represented at the Annual General Meeting.

A recording of the speeches given by the Chairman of the Supervisory Board and the members of the Executive Board, and the detailed results of the votes on the individual agenda items at the meeting are available at www.ir.knorr-bremse.com.

Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG: “By extending his contract early the Supervisory Board underscores complete confidence in Frank Weber’s work. I, for one, am delighted that he will remain a leading light at the company in the coming years, ensuring continuity within the Executive Board. As Chief Financial Officer, Frank Weber is one of the key driving forces behind our strong financial performance, thereby laying the groundwork for targeted investments in future-oriented areas and expanding our leading market position.”

Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “I would like to thank the Supervisory Board for the trust placed in me. Together, we have made Knorr-Bremse more financially resilient in recent years, clearly aligned our capital allocation with our strategic goals, and driven up our profitability and cash flow generation. I intend to build on this progress and further advance Knorr-Bremse’s successful development together with the Executive Board and our colleagues worldwide.”

Dr. Reinhard Ploss, Chairman of the Supervisory Board of Knorr-Bremse AG:
“On behalf of the full Supervisory Board, I would like to warmly thank Ms. Nikutta for her extraordinary commitment and the constructive working relationship in recent years. During her tenure, she made a valuable contribution with her expertise and outlook, also successfully overseeing Knorr-Bremse’s entry into the new rail control, command, and signaling technology business segment. To take her place we are proposing Dr. Christian Schlögel, a proven expert in digitalization, for election to the Supervisory Board. His experience and innovative capacity are an excellent fit with Knorr-Bremse’s strategic objectives. We are confident that Dr. Schlögel can provide valuable impetus for our company’s continued development.”

The dividend payment and the new elections to the Supervisory Board require the shareholders’ approval at the virtual Annual General Meeting, for which invitations have been sent for April 30, 2026: Investor Relations/Annual General Meeting.

The 2025 Annual Report of Knorr-Bremse AG was published today and is available to download at www.knorr-bremse.com as of this moment.

Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “The development of our KPIs in the 2025 fiscal year underscores the extent of our company’s sustainable earnings capacity and considerable financial stability. We demonstrated our financial strength with a significant increase in free cash flow to over € 790 million, a cash conversion rate well above 100% once more, and a further improvement in the operating EBIT margin to 13%. The strong year-end results were bolstered by significant contributions in the fourth quarter. This is all down to our systematic cost-cutting and portfolio optimization as part of our BOOST strategy. At the forefront of our priorities is lowering our fixed costs. In total, more than 10,000 measures are still being implemented with the aim of deploying capital and resources in a more focused manner and securing structural efficiency gains in the long term.”

Sizable margin increase and record free cash flow

2025 was another year full of uncertainties. Despite these challenges, Knorr-Bremse developed very successfully in terms of revenues, earnings and cash flow, driven by the consistent implementation of the BOOST strategy with a clear focus on portfolio optimization, cost discipline and lowering the break-even point. The full effect of the BOOST measures on performance was especially evident in the fourth quarter. Stringent execution of the initiatives to increase earnings and enhance efficiency resulted in significant margin expansion and a record free cash flow.

Order intake at € 8,417 million was nearly 3 % higher than the prior-year figure (previous year: € 8,186 million), with the higher order intake in the Rail Division compensating for falling demand in the commercial vehicle business. The ratio of incoming orders to revenues (book-to-bill ratio) increased slightly year over year to 1.08 in the 2025 fiscal year, providing a solid basis for capacity utilization in 2026 and beyond. The order book stood at € 7,362 million as of December 31, 2025 (previous year: € 7,182 million), continuing to climb on the back of the very healthy level of orders in the rail vehicle business.

Consolidated revenues in organic terms increased by 1.9% despite an extremely challenging downturn in the North American commercial vehicles market. Even after the disposals of R.H. Sheppard and GT Emissions Systems in the Truck Division and negative impacts caused by currency effects, revenues remained essentially stable in the 2025 fiscal year at € 7,817 million (previous year: € 7,883 million). The revenues of KB Signaling, acquired in 2024, which were now taken into account for a full year, making a sizable contribution to this figure. Organic revenue growth in the fourth quarter came in at a robust 6.4%.

In the 2025 fiscal year, operating EBIT was up by € 50 million year over year to a total of € 1,016 million (previous year: € 966 million), with the operating EBIT margin registering a significant improvement to 13.0% compared with the previous year (12.3%). This increase clearly reflects the improvement in the cost structures, staff adjustments, and the portfolio optimization. The fourth quarter in particular saw a substantial widening of the operating EBIT margin in the two divisions. On a quarterly basis, profitability increased by 140 base points year over year to 17.0% (Q4/2024: 15.6%) for Rail and by 180 base points to 11.3% for Truck (Q4/2024: 9.5%).

Free cash flow continuously improved in the year just ended, reaching € 471 million in the last quarter of 2025 alone. Full-year operating free cash flow hit a new all-time high of € 790 million. This is mainly attributable to the significant improvement in the cash flow from operating activities together with lower capital expenditures. The cash conversion rate (free cash flow relative to net income) reached 131% on an operating basis due to the strong earnings – a significantly higher level than in the previous year (113%).

Rail Division achieves new records; Truck Division maintains stable double-digit return despite challenging market situation

The Rail Division (RVS) turned in a very strong performance again in 2025, accounting for a large share of Knorr-Bremse’s results. This was primarily attributable to the positive order trend recorded in all regions, due to demand in the Asian and North American markets in particular, and the very favorable development of KB Signaling.

• Order intake rose by over 7% to € 4,774 million (previous year: € 4,440 million).

• The order book reached a new record of € 5,576 million as of December 31, 2025 (December 31, 2024: € 5,352 million).

• Revenues were also up on the previous year, hitting a new all-time high of € 4,316 million (previous year: € 4,044 million).

• Operating EBIT recorded a substantial increase of over 10% to € 713 million (previous year: € 630 million).

• The operating EBIT margin rose to 16.5% (previous year: 15.6%).

The Truck Division (CVS) performed well in a very challenging market environment and recorded only moderate declines year over year, mainly supported by higher demand in Europe, a robust aftermarket business, and the cost control measures introduced.

• Order intake amounted to € 3,644 million (previous year: € 3,748 million).

• Despite divestments, the order book as of December 31, 2025 stood at € 1,788 million (December 31, 2024: € 1,832 million).

• At € 3,503 million, revenues remained moderately below the prior-year figure as a result of market and portfolio factors (previous year: € 3,842 million).

• Operating EBIT came in at € 363 million (previous year: € 401 million).

• At 10.4%, the operating EBIT margin remained stable at the previous year’s level (10.4%).

BOOST program advancing, with portfolio optimization and focused investments strengthening growth strategy

In the first phase of the BOOST program, Knorr-Bremse concentrated on making structural and organizational improvements. Since 2023, the company has been systematically cutting costs and optimizing its portfolio in order to safeguard its position as the global market leader in the long term and enhance its performance. The business units Knorr-Bremse has sold to date have generated revenue in excess of €400 million. The company will continue optimizing its portfolio in the current year. The achievements were already visible in the fiscal year now ended and will continue to have a positive impact on Knorr-Bremse’s earnings in 2026 and beyond.

In the second phase of the BOOST program, Knorr-Bremse is focusing on increasing attractive growth. Knorr-Bremse has already expanded its business in profitable cutting-edge fields with high-margin acquisitions, such as the acquisition of KB Signaling in 2024 and the recent purchases of duagon Group and TRAVIS Road Services. duagon will broaden the offering of electronics and software for the rail industry, while TRAVIS will expand aftermarket solutions for commercial vehicles as a digital platform solution.

Overall, Knorr-Bremse is also placing strong emphasis on its digitalization strategy: In addition to its own center for artificial intelligence, currently being set up in India, Knorr-Bremse is driving forward its AI transformation with Amazon Web Services (AWS). The aim of this project is to use powerful AI systems to make the company even faster and more agile in the long term (see press release dated February 16, 2026).

Guidance for 2026

Assuming that the geopolitical and macroeconomic environments remain stable, the company expects revenues between € 8,000 million and € 8,300 million, an operating EBIT margin of around 14%, and free cash flow between € 750 million and € 850 million for the 2026 fiscal year.

In order to remain strategically well positioned beyond 2026 and continue to grow profitably in the long term, Knorr-Bremse may incur restructuring costs of up to € 30 million, among other things to optimize its global production footprint.

The figures presented here are preliminary and unaudited. The full annual financial statements and annual report will be published on www.knorr-bremse.com on March 19, 2026.

A video recording of the annual press conference with Chief Executive Officer (CEO) Marc Llistosella and Chief Financial Officer (CFO) Frank Weber on the preliminary figures for the 2025 fiscal year will be provided in the Knorr-Bremse Newsroom section of our website.

A webcast for investors with Chief Executive Officer (CEO) Marc Llistosella and Chief Financial Officer (CFO) Frank Weber on the preliminary figures for the 2025 fiscal year will be held today at 1 p.m. (CET). The presentations are available on our website at www.knorr-bremse.com.

Key Figures of Knorr-Bremse Group

Key Figures for the Knorr-Bremse Group's divisions

Sathees Navaratnam, Chief Digital Officer at Knorr-Bremse AG: "AWS creates the optimal basis for innovation and performance enhancement. As a first step, we are further developing our organizational structure to enable cross-functional innovation with increasingly autonomous processes. State-of-the-art AI models and infrastructure from AWS help us to leverage the full potential of intelligent systems across the group.‘

Stefan Hoechbauer, Managing Director Germany and Central Europe, Amazon Web Services: ’With its development and system excellence, Knorr-Bremse is perfectly positioned to become a key AI player in the manufacturing industry. AWS is providing its most advanced cloud and AI services for this transformation. This combination lays the foundation for fundamental change. Together, we are setting new standards for intelligent and data-driven manufacturing."

Knorr-Bremse focuses on three core areas when using AWS:

• Establishing an AI operating model: AWS enables Knorr-Bremse to develop, operate and scale new products and solutions in much shorter time frames. AI agents increase productivity in the supply chain, engineering and production.

• Building autonomous industrial solutions: Developing new business models through data monetization and data-based service offerings.

• Establishing an AI-friendly organizational culture: Systematically empowering around 4,000 employees to use AI technologies to modernize the way they work. Training platforms and AI tools to promote innovation and agility in all areas of the company.

An initial pilot project in India highlights the potential: AI agents support software development for brake control systems with automated quality checks – with expected productivity increases of up to 30 per cent.

Investment in the future

Knorr-Bremse will build the cross-divisional industrial facility, which will cover a total area of around 188,000 m², equivalent to approximately 26 soccer fields, in multiple phases. The first phase will see the construction of production plants for entrance systems for metros, regional and high-speed trains, as well as for braking system components for commercial vehicles, which will commence operations at the end of 2027. Additional office complexes, where employees will drive forward the intelligent bundling of global business and administrative processes, will be completed by 2030 and beyond. Especially with the consolidation of Global Business Services in Chennai, among other areas in HR and Finance, Knorr-Bremse aims to increase its global process efficiency and speed in the long term.

Chennai as a technology hub

In recent years, Chennai, capital of the state of Tamil Nadu, has developed into a leading technology hub with a highly qualified engineering landscape and excellent infrastructure. Knorr-Bremse opened a center for Artificial Intelligence in Chennai in the summer of 2025 as part of its global digital strategy. Being built in the AI center’s immediate vicinity, the new complex can be flexibly expanded thanks to its modular design. In total, the scope of the major project is reflected in Knorr-Bremse’s long-term approach of investing between four and five percent of its annual revenue.

Products for the Indian and world market

The products manufactured in Chennai will be intended for both the Indian market and global export. Knorr-Bremse is thus responding to the expected growth in India in its core segments: freight and passenger rail transport and, increasingly, commercial vehicles such as trucks, delivery vehicles, and buses. Knorr-Bremse is already involved in rail projects in Delhi and Chennai, among others, as a leading supplier of braking and entrance systems for metro trains, and will also equip India’s first high-speed trains with braking, entrance, air conditioning, and sanitation systems. The sales volume of both Knorr-Bremse divisions in India is growing strongly and already amounts to over €300 million per year.

Sustainable certification

Besides, the new campus meets high standards of sustainability and energy efficiency. Among other things, the complexes and their equipment comply with the LEED Platinum standard, which is awarded to particularly energy-efficient and environmentally friendly buildings. The future campus is also aligned with the assessment criteria of the EU taxonomy for environmentally sustainable economic activities. In the first construction phase of the project alone, which will run until the end of 2027, photovoltaic systems with an installed capacity of around 2,500 kWp are planned.

At the Handelsblatt conference ‘Circular Economy 2026’, Knorr-Bremse announced the launch of the attractive Knorr-Bremse Circular Technology Award for innovations in the circular economy areas of automated disassembly and critical raw materials recovery. Knorr-Bremse and the Heinz Hermann Thiele Family Foundation are cooperating with CIRCULAR REPUBLIC, the circular economy hub at Europe's largest innovation center, UnternehmerTUM. In close cooperation with the Technical University of Munich, UnternehmerTUM supports start-ups from the idea to market maturity, providing access to an excellent network of founders and industry.

Dr. Matthias Ballweg, co-founder of CIRCULAR REPUBLIC: "The Knorr-Bremse Circular Technology Award from Knorr-Bremse is a novelty and one of the most attractive start-up prizes that aims to promote the circular economy in the long term. Founders who want to create new circular economy solutions are essential for the future of our economy. As part of UnternehmerTUM, we offer founders the opportunity to increase their visibility and expand their network, and as a project partner, we look forward to working with Knorr-Bremse to find the most innovative green tech solutions."

The jury includes Marc Llistosella (CEO of Knorr-Bremse AG), Julia Thiele-Schürhoff (Member of the Management Board of the Heinz Hermann Thiele Family Foundation), Dr. Erik Eschen (CEO of Vakuumschmelze), Roland Gauß (Director of EIT Raw Materials), Univ.-Prof. Dr.-Ing. Dipl.-Wirt. Ing. habil. Günther Schuh (RWTH Aachen University) and Philipp Rösler (former Vice-Chancellor and Minister for Economic Affairs of the Federal Republic of Germany). The application period ends on 2 March 2026. The winners will be announced on 6 May 2026 at IFAT, the world's most important trade fair for water, sewage, waste and raw materials management.

Further information on the Knorr-Bremse Circular Technology Award can be found here: https://www.circular-republic.org/award/

Knorr-Bremse has set ambitious climate targets and aims to achieve net-zero emissions (Scope 1–3) by 2050. The interim targets validated by the Science Based Target initiative (SBTi) for 2030 cover production, the supply chain, and product use. As an internationally successful player in the mobility sector, Knorr-Bremse actively supports its customers’ efforts toward sustainable transportation with solutions for safe, efficient, and environmentally friendly mobility on rail and road.

In the 2025 CDP rating, the company improved from “A-” to the highest score “A,” placing it among the leaders in transparency and climate action. Only four percent of the more than 22,000 companies assessed achieved this distinction in the current rating. CDP operates the most comprehensive environmental database, collecting annual data on CO₂ emissions, climate risks, and reduction targets from companies, thereby creating a data-driven foundation for environmentally responsible decisions.

Already in early December last year, Knorr-Bremse also achieved a significantly improved score in the S&P Global Corporate Sustainability Assessment (CSA) compared to the previous year. The overall score of 64 points represents an increase of nine points year-on-year. This positions Knorr-Bremse among the top five percent globally in the “Machinery and Electrical Equipment” sector (as of December 2025). The improvement is due partly to Knorr-Bremse’s successful reduction of CO₂ emissions and partly to the company’s expanded and more transparent sustainability reporting. Through its annual analysis of sustainability practices, S&P Global CSA helps companies worldwide assess and further develop their sustainability performance based on industry-specific economic, environmental, and social criteria.

Further information on Knorr-Bremse’s sustainability strategy can be found at: Knorr-Bremse | Sustainability.

Dr. Nicolas Lange, member of the Executive Board of Knorr-Bremse AG with global responsibility for the Rail Division: “duagon’s expertise in electronics, software and digital solutions is a perfect match for our portfolio. The acquisition will open up opportunities for considerable growth, particularly in our lines of business involving communication and control solutions for rail transport (Selectron) and rail signaling technology (KB Signaling). All in all, it will allow us to reinforce our position as a leading Tier 1 partner for the overall system of rail transport.”

Growth business of railway electronics and signaling technology

The combined expertise of around 1,000 electronics and software experts will enable Knorr-Bremse to develop key technologies that will take the digital transformation of the rail industry to the next level. These include custom solutions and microprocessors for the next generation of high-performance control and communication systems for trains, as well as safety-critical components in signaling and track technology.

By integrating duagon, Knorr-Bremse will also benefit from considerable synergy effects, leveraging cost potential by consolidating and strengthening its expertise in areas such as research and development and purchasing. Overall, the expertise present at duagon will help to drive up innovation, development speed, and efficiency across multiple lines of business at Knorr-Bremse.

Attractive long-term growth

duagon achieved a compound annual growth rate of around 15% between 2022 and 2025, a development Knorr-Bremse expects to be clearly sustained over the coming years. The acquisition will also make Knorr-Bremse a leading supplier in an attractive market segment with an above-average annual growth rate. Knorr-Bremse expects duagon to generate an operating EBIT margin of around 16% (excluding integration costs) in 2026, which can be increased further in the coming years through significant revenue growth and potential cost savings. In addition, Knorr-Bremse expects EBIT-effective run-rate synergies of 5-10 million euros from the year 2028. duagon’s customers include vehicle manufacturers, systems integrators, and infrastructure companies from the railway industry. Knorr-Bremse’s Selectron and duagon businesses will together generate annual revenue of approximately 250 million euros and attractive profits.

Supplier summit to strengthen growth and cooperation

With “Procurement in India for the global market” as the event’s focus, Knorr-Bremse underlined its confidence in India's growing supply skills and competencies. Purchasing managers from Knorr-Bremse and representatives of suppliers from the fields of castings, machined parts, components, connectors, standard parts, and welded assemblies discussed common challenges and ways to achieve sustainable cooperation. A key topic was India’s potential as a production hub for exports to supply markets worldwide.

Long-term strategy for the future

Establishing a strong supplier network in India is an important part of Knorr-Bremse's future strategy. The Rail division is already taking significant steps in this direction: among other things, supply agreements are being made more efficient, harmonized, and consistently aligned with market and customer needs. This creates a solid foundation for sustainable local and international growth. Also with regards to the geopolitical context, Knorr-Bremse is further expanding its independence, flexibility, and delivery capability by strengthening its supplier relationships in India. Knorr-Bremse Rail and Truck’s sales volume in India amounted to around €300 million in 2024.

With sites in Chennai, Palwal, and Pune, India plays a strong role as an innovation and production hub within the Knorr-Bremse Group. Knorr-Bremse recently opened a center for artificial intelligence in Chennai as part of its global digital strategy and as proof of India’s growing importance as a space for innovation. Besides, Knorr-Bremse announced its investment in the construction of a modular campus in Chennai. This will create additional production, engineering, and back-office activities, with around 3,500 jobs to be created in the long term.

Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “Knorr-Bremse has done its homework and has a very solid financial footing. In times of geopolitical and macroeconomic uncertainty, this gives us freedom and represents a clear competitive advantage. Our best profitability in 16 quarters – 13.3% in the past quarter – confirms this impressively. The focus last year was on preparing and implementing adjustment of the portfolio. This year, we’re adapting our structures so that we can address the issue of sustainable growth and expansion more strongly in the coming year.”

The persistently high demand in the Rail division and the continued solid performance of the Truck division despite market weakness clearly underline Knorr-Bremse’s resilience. In particular, the Rail Vehicle Systems (RVS) division made a substantial contribution to our overall success.

The order intake improved significantly year-on-year to € 6,440 million (9M 2024: € 6,182 million). The order book increased by 4.4% to € 7,368 million as at September 30, 2025 (September 30, 2024: € 7,058 million). Organically, this even equates to a rise of 8.2%. Consolidated revenues were € 5,839 million and thus largely stable compared with the first nine months of 2024 despite considerable exchange rate effects (9M 2024: € 5,897 million). Organically, revenues rose slightly by 0.4%.

Consolidated earnings improved on the back of the higher revenues in the Rail division, resultant economies of scale, targeted efficiency measures and successes in restructuring of the portfolio. Operating EBIT rose by 3.3% to € 749 million (9M 2024: € 725 million). The operating EBIT margin improved accordingly from 12.3% in the prior-year period to 12.8%, an increase of 0.5 percentage points. In the third quarter alone, the operating EBIT margin improved by one percentage point to 13.3%. Free cash flow rose positively in the first nine months thanks to the good operating performance and working capital optimization, reaching € 319 million, an increase of almost 30% despite the negative impact of exchange rate effects (9M 2024: EUR 248 million).

Overview of Development in Both Divisions

Rail Vehicle Systems Division (RVS):

• Order intake increased due to the persistently high demand in the global rail market, up a significant 13.5% to € 3,773 million (9M 2024: € 3,323 million)

• The order book increased to € 5,659 million (September 30, 2024: € 5,222 million)

• Revenues improved 8.2% to € 3,219 million (9M 2024: € 2,976 million)

• Operating EBIT rose by a significant 13.8% to € 526 million (9M 2024: € 463 million)

• The operating EBIT margin increased to 16.4% (9M 2024: 15.5%)

Commercial Vehicle Systems Division (CVS):

• Order intake amounted to € 2,667 million (9M 2024: € 2,861 million) and organically was at the previous year’s level

• Given the challenges in the truck market, the order book remained at a high level of € 1,710 million as at September 30, 2025 (September 30, 2024: € 1,838 million)

• Revenues in the first nine months were € 2,622 million, 10.3% behind the comparable period of the previous year (9M 2024: € 2,922 million) due to market-related factors and exchange rate effects as well as portfolio adjustments; organically, revenues only fell by 3.3%

• Operating EBIT declined to € 264 million, mainly due to volumes (9M 2024: € 314 million)

• Profitability was almost maintained despite the market-driven reduction in volume and stood at 10.1% (9M/2024: 10.7%)

Operating Guidance for 2025 confirmed

Knorr-Bremse confirms its operating guidance for the 2025 fiscal year. This is based on the assumption of stable geopolitical and macroeconomic environments, exchange rates at the level of October 2025 and no major impacts from possible tariffs. Knorr-Bremse expects revenues of between € 7,800 million and € 8,100 million, an operating EBIT margin of 12.5% to 13.5% and a free cash flow of between € 700 million and € 800 million.

The interim report for the January to September 2025 period is available on the Knorr-Bremse AG website. Notes to and reconciliations with the financial indicators used can be found in the 2024 Annual Report of Knorr-Bremse AG.

Key Figures of Knorr-Bremse Group

Key Figures for the Knorr-Bremse Group's divisions

Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG, said: “In renewing Nicolas Lange’s contract, the Supervisory Board of Knorr-Bremse AG has sent out a powerful message about continuing the highly effective collaboration among the Executive Board members. Under Nicolas’ leadership, the Rail Vehicle Systems division makes a sizable contribution to our company’s successful development, for example through efficiency and performance enhancements as part of the BOOST strategy program, as well as with pioneering investments, innovations, and important customer projects. I look forward to continuing working with him.”

Dr. Nicolas Lange said: “I would like to thank the Knorr-Bremse Supervisory Board for their trust in me. Over the last two years, we in the Rail division have implemented key measures to steer our business toward profitable growth and lasting success. I look forward to continuing these important advances and am committed to further pursuing them together with the Executive Board team and our colleagues around the world.”

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

Key Figures for the Knorr-Bremse Group's divisions

Sathees Navaratnam, Chief Digital Officer at Knorr-Bremse: “AI is rapidly finding its way into all areas of the company – whether procurement, human resources or, of course, IT. Against this backdrop, our presence in the technology hub of Chennai offers ideal conditions, both now and in the future. Specifically, highly qualified specialists on site can train AI models using our company data and quickly and flexibly adapt so-called AI agents to our needs. The solutions will support teams throughout the Group in improving processes, accelerating workflows, and making data-driven decisions.”

AI strengthens Knorr-Bremse and its customers in the competitive environment

AI agents are software programs that can independently break down larger tasks into individual steps and execute them. Knorr-Bremse sees promising initial applications in software development and automated invoice verification. AI agents could also be used in the near future for progress measurement, cost control, virtual product testing, and supply chain management. The AI agents are supported in their tasks by a specially developed analytics engine, which acts as the nerve center of the AI and can already generate software code faster and more accurately than human developers.

At the same time, customers will benefit from the added value of the AI center: In addition to its own process optimization and efficiency gains, Knorr-Bremse will use AI in the multi-stage engineering and innovation processes of its system solutions for rail and commercial vehicles. Among other things, AI agents will soon also support the development of electronic and software components – for braking systems, for example – to make R&D processes faster, more adaptive, and more flexible, and to integrate increasingly differentiated customer needs even more closely into product development.

Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “We have a rock-solid financial footing. Our finances are secured over the long term, and we are posting an excellent equity ratio. In the medium term, we expect the new German government’s economic stimulus program to provide momentum for business in both divisions. The capital expenditure on infrastructure will drive new orders for commercial and rail vehicles. Our globally distinctive localization strategy greatly supports our ability to act flexibly and our containment of any tariff-related impacts. The free cash flow of € 15 million, which is extraordinarily high for the first quarter, is due to strong operational performance and, to a large extent, the ongoing optimization of working capital.”

The geopolitical and economic challenges are persisting. Thanks to its decentralized basis, Knorr-Bremse is still demonstrating itself to be highly resilient. As explained in the notification on April 29, 2025, the order intake has risen by an impressive 12.5% year over year to € 2,376 million. There are positive effects on this from the newly acquired KB Signaling business as well as pre-emptive effects due to the current tariff issue.

The order book increased to € 7,443 million (March 31, 2024: € 6,728 million), representing 10.6% growth. The consolidated revenues of € 1,958 million exhibited largely steady development from the previous year (Q1/2024: € 1,974 million) and recorded a slight, organic increase. The Rail Vehicle Systems (RVS) division was therefore more than able to compensate for the market-driven revenue developments in the Commercial Vehicle Systems (CVS) division in the previous year.

With operating EBIT of € 236 million (Q1/2024: € 238 million), too, the Rail Vehicle Systems division was able to offset the challenging truck markets for reasons including in particular the positive development in the Asia–Pacific market and the good mix between OE and aftermarket business. The operating EBIT margin remained at the previous year’s level at 12.1% (Q1/2024: 12.1%). Free cash flow rose to € 15 million due to good business performance, ongoing working capital optimization, and a tax refund (Q1/2024: € -95 million), which is extraordinarily strong for the first quarter.

Overview of Strong Development in Both Divisions

Rail Vehicle Systems Division (RVS):

• Order intake climbed organically though it was also energized by KB Signaling, rising by 23.5% to € 1,312 million (Q1/2024: € 1,062 million)
• The order book was also supported by KB Signaling and increased by 16.7% to € 5,530 million (March 31, 2024: € 4,739 million)
• Revenue was up a significant 10.5% at € 1,065 million (Q1/2024: € 964 million)
• Operating EBIT improved by 13.9% from the corresponding prior-year figure to € 166 million (Q1/2024: € 145 million)
• The operating EBIT margin saw a significant 50 base point increase to 15.6% (Q1/2024: 15.1%)

Commercial Vehicle Systems Division (CVS)

• Order intake increased slightly to € 1,065 million (Q1/2024: € 1,051 million)
• The order book, at € 1,914 million as at March 31, 2025, remained nearly stable (March 31, 2024: € 1,991 million)
• Revenues in the first quarter saw an expected decline for market-related reasons and due to the deconsolidation of GT and Sheppard, going down to € 894 million (Q1/2024: € 1,011 million)
• Operating EBIT went down to € 85 million (Q1/2024: € 111 million)
• The operating EBIT margin decreased accordingly to 9.5% (Q1/2024: 11.0%)

Guidance

Based on the exchange rate levels of February 2025 and based on the assumption that the geopolitical and macroeconomic environments remain mostly stable and that there are no larger impacts from possible tariffs, Knorr-Bremse is confirming its guidance for the 2025 fiscal year. The weakness in the American truck market should be mitigated by stronger European business. Moreover, there is higher potential for restructuring in a number of regions which now results in costs of approximately € 75 million. Accordingly, the company expects revenues between € 8,100 million and € 8,400 million, an operating EBIT margin between 12.5% and 13.5%, and free cash flow between € 700 million and € 800 million.

The full quarterly report 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).

Knorr-Bremse Group Key Performance Indicators:

Key Figures for the Knorr-Bremse Divisions:

Dr. Reinhard Ploss, the Chairman of the Supervisory Board of Knorr-Bremse AG, said: “Stephan Sturm will be an outstanding addition to and enrichment of the Supervisory Board thanks to his extensive and many years of management experience. Furthermore, his candidacy is evidence of the Foundation’s clear and strong commitment to our company. It creates stability and dependability for Knorr-Bremse’s ongoing development. We are greatly looking forward to the close and trusting collaboration with Mr. Sturm on the Supervisory Board. On behalf of the full Supervisory Board and our company’s workforce, I would like to thank Dr. Weimer for the extraordinary commitment and willingness with which he contributed his extensive, international experience for the benefit of our company in challenging times. All of us highly appreciated our collaboration and exchange with him.”

Stephan Sturm was Chairman of the Management Board of the Fresenius Group until 2022 before becoming the CEO of the Heinz Hermann Thiele Family Foundation in 2023. Between 2015 and 2021, he sat on the Supervisory Board of Deutsche Lufthansa, most recently as Chairman of its Audit Committee.

The dividend payment and the new election to the Supervisory Board require the shareholders’ approval at the virtual Annual General Meeting, for which invitations have been sent for April 30, 2025: Investor Relations/Annual General Meeting.

Information about the previous fiscal year can be found in the 2024 Annual Report, which is available to download at www.knorr-bremse.com as of this moment.

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.

• Order intake rose significantly to € 4,440 million (previous year: € 4,043 million)
• The order book increased to € 5,352 million (December 31, 2023: € 5,132 million)
• Revenues surpassed the € 4 billion mark for the first time, reaching a record level of € 4,044 million (previous year: € 3,748 million)
• Operating EBIT improved sharply by 18% to € 630 million (previous year: € 536 million)
• The operating EBIT margin increased to 15.6% (previous year: 14.3%)

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:

• Order intake amounted to € 3,748 million (previous year: € 4,212 million)
• The order book was € 1,832 million as of December 31, 2024 (December 31, 2023: € 1,952 million)
• Revenues remained below the figure for fiscal year 2023 at € 3,842 million for market-related reasons (previous year: € 4,180 million)
• Operating EBIT only declined slightly by just under 4% to € 401 million (previous year: € 417 million)
• The operating EBIT margin even bucked the market trend, improving to 10.4% (previous year: 10.0%)

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 www.knorr-bremse.com 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 Knorr-Bremse Newsroom 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 www.knorr-bremse.com.

Key Figures of Knorr-Bremse Group

Key Figures for the Knorr-Bremse Group's divisions

Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG: “I am pleased to have the opportunity to continue shaping the future of Knorr-Bremse together with my Executive Board team and colleagues around the world. We are in the middle of the company’s strategic transformation and have set out to do a great deal to make Knorr-Bremse fit for the future in all areas. Our clear priorities are profitability, sustainable growth and added value.  We are implementing our strategy with determination. I give my thanks to Reinhard Ploss and the entire Supervisory Board for their confidence in me and look forward to continuing working together closely and trustingly.”

The global Engine Air portfolio of GT Emissions Systems comprises exhaust throttle and exhaust gas recirculation valves, among other things. The company supplies leading manufacturers with emission control systems for diesel engines in on- and off-highway vehicles. GT Emissions Systems solutions make a key contribution for diesel engine manufacturers to meet the international emission standards. The annual revenue of GT Emissions Systems amounts to around EUR 70 million.

With the sale of GT Emissions Systems, Knorr-Bremse has already successfully sold four investments under its BOOST 2026 program within the span of 12 months. Overall, Knorr-Bremse is working on a large number of strategic initiatives and measures for safeguarding lasting, profitable growth over the coming years.

Dr. Reinhard Ploss, Chairman of the Supervisory Board of Knorr-Bremse AG: “Knorr-Bremse’s ascent is characterized by a powerfully entrepreneurial mindset and visionary innovation. Thanks to the ideas of the company’s original founder, Georg Knorr, millions of people around the world now travel safely by road and rail every day. Starting in the mid-1980s, Heinz Hermann Thiele spent almost four decades showing us all what could be achieved with courage and determination as he built up the company into a major global player. Now the Knorr-Bremse team is carrying this legacy forward with passion and commitment, while using this strong foundation to constantly reinvent itself. The company’s future success is assured by its engineering expertise, dedication to the highest quality standards, and farsighted strategic thinking. On behalf of the entire Supervisory Board, I congratulate Knorr-Bremse employees around the world on this remarkable success story, and I look forward to supporting the company’s future development.”

Marc Llistosella, Chief Executive Officer (CEO) of Knorr-Bremse AG: “After 120 proud years, Knorr-Bremse is in great shape. Over many decades, with great passion and an unflagging willingness to change and evolve, the Knorr-Bremse team has built an internationally successful company. For me personally, leading this company at this time is an enormous privilege. The whole Executive Board team is proud of the achievements and commitment of our workforce. Our customers appreciate the reliability and superior quality of our products, our perfect service, and our innovative developments and solutions for tomorrow’s mobility and transportation technologies. We see this clearly reflected in the high levels of loyalty and many years of close collaboration this company has enjoyed and continues to enjoy with our customers and business partners – for which I would like to express my sincere thanks on behalf of all my colleagues.”

Twofold cause for celebration: 120 Years of Knorr-Bremse, 20 Years of Knorr-Bremse Global Care

Encapsulated in the motto “One World – One KB”, Knorr-Bremse is celebrating 120 years of business success. Anniversary celebrations will focus on the global team of employees, whose commitment, ideas and hard work have made this exceptional success possible. The company will celebrate this remarkable team achievement by organizing in-house festivities on Knorr-Bremse sites around the world throughout the summer of 2025. During the year, the company will also invite employees to take a closer look at the company’s history, focus even more intensively on tackling future developments and challenges, and take part in an in-house sustainability competition launched especially for the anniversary year.

Just how impactful employee commitment can be is clearly reflected by Knorr-Bremse’s parallel anniversary: In 2005, on the initiative of Heinz Hermann Thiele and his daughter Julia Thiele-Schürhoff, employees set up the non-profit organization Knorr-Bremse Global Care, now active all around the world. For the last 20 years, the association has focused on supporting people who have fallen on hard times through no fault of their own, helping them to become independent. In terms of projects, Knorr-Bremse Global Care prioritizes education and WASH (water, sanitation and hygiene), aligning its efforts with the United Nations Sustainable Development Goals (SDGs). The association’s work has already reached over one million people.

Julia Thiele-Schürhoff, Chair of the association’s Executive Board: “I am enormously grateful for the commitment shown by Knorr-Bremse employees since the association was first founded, in helping so many people to build autonomous, financially independent lives for themselves and their families. As a society, we will only be able to find lasting solutions to global challenges such as the climate crisis, social inequality and migration if we take collective responsibility for the consequences of existing imbalances and work to find innovative solutions to the systemic issues involved.”

The Knorr-Bremse Group supports the association’s activities by making regular donations and contributing employees’ expertise as part of its corporate social responsibility.

How Knorr-Bremse rose to become the global market leader in braking systems for rail and commercial vehicles

Georg Knorr laid the foundations of the company’s success when he established Knorr-Bremse GmbH in Berlin on January 19, 1905. As a young engineer, he succeeded in revolutionizing rail transportation with his visionary ideas and meticulous development work. A few years later, the company also entered the commercial vehicle market. Safety was always a key consideration when developing braking solutions and other safety-critical components and subsystems: The company’s major breakthrough came after pneumatic brakes developed by Knorr reduced the number of accidents and made vehicles more reliable. To this day, these criteria form the basis of the company’s ongoing success, which has been further enhanced by the continuous development and optimization of the company’s products in response to changing traffic volumes, increasingly heavy loads and ever more stringent regulatory standards.

In full awareness of these strengths, entrepreneur Heinz Hermann Thiele took the reins of the company following a management buyout in 1985 and spent decades in a constant quest for innovation, excellence, and market leadership. After merging the company with Süddeutsche Bremsen AG to form Knorr-Bremse AG, he focused on the core business activities, on the two divisions (Rail Vehicle Systems and Commercial Vehicle Systems) and on building an international presence. Thus Knorr-Bremse rose to become the world’s leading manufacturer of braking systems for rail and commercial vehicles. The company’s IPO in 2018 provided Knorr-Bremse with the necessary commercial and financial flexibility to remain successful in the future. Today, Knorr-Bremse holds around 12,000 patents, and in fiscal 2023, generated annual revenues of some EUR 7.9 billion.

The future is digital: Building an edge with innovative solutions

The world’s transportation markets are evolving at breakneck speed – and Knorr-Bremse is playing a major role in this rapid progress by actualizing the enormous potential of digitalization to produce real-world solutions. By developing the Digital Automatic Coupler (DAC), for example, Knorr-Bremse is enabling advanced automation and smart digital services in the rail freight sector. And in the commercial vehicle sector, the company is using Cojali’s Jaltest Diagnostics suite – which includes fully integrated Knorr-Bremse Diagnostics tools – to boost efficiency in vehicle workshops. As well as stationary in-workshop diagnostics, Knorr-Bremse is working with Cojali to expand its range of remote diagnostics (condition-based monitoring) and predictive maintenance solutions.

For more details of Knorr-Bremse’s history and “120 Years of Knorr-Bremse”, as well as ongoing updates throughout our anniversary year, visit our corporate website at https://www.knorr-bremse.com/en/company/120th-anniversary/.

Bernd Spies, member of the Knorr-Bremse AG Executive Board and responsible for the Commercial Vehicle Systems division: “With the sale of R.H. Sheppard Co., Inc, we are optimizing our portfolio in our truck division. This transaction enables us to align our business with even greater focus and profitability. In addition to the Truck Division’s clear focus on mechatronic steering systems, our North American subsidiary Bendix will now concentrate even more on its core competencies of braking systems, vehicle dynamics, air and energy management and innovative driver assistance systems. With Balmoral, we have found an ideal buyer for Sheppard which will lead the company and its employees in the future.”

Sheppard is one of the leading manufacturers of commercial vehicle steering systems in the North American market. The company develops and manufactures commercial vehicle steering systems as well as adjacent products and services to utmost quality standards. Its revenues in the 2023 fiscal year came to approximately US$ 150 million. The transaction encompasses the entire Sheppard business. Sheppard was previously an operating unit of Bendix Commercial Vehicle Systems LLC, a subsidiary of Knorr-Bremse and part of the Commercial Vehicle Systems division.

The disposal of Sheppard is already Knorr-Bremse’s fourth successful sale of an investment this year under its BOOST 2026 program. Overall, Knorr-Bremse is working on a large number of strategic initiatives and measures for safeguarding lasting, profitable growth over the coming years and is thus fully on schedule.

The income from the sale of Sheppard will produce a one-time, non-cash and non-operating net loss of approximately € 60 million, which will have a negative impact of around €0.37 on earnings per share in Q4 2024.

In addition, the Executive Board of Knorr-Bremse decided on a fair value adjustment for the carrying amount of a receivable (remaining purchase price and earn-out) from the sale of Kiepe Electric GmbH of just under €50 million. Although the write-off is also a one-time, non-cash charge and will not have an impact on the operating result, it will negatively affect Q4 2024 earnings per share by €0.31.

For the coming Annual General Meeting, Knorr-Bremse is planning to propose a dividend for the 2024 fiscal year that is at least stable so as to reflect its continued strong operating performance. Knorr-Bremse confirms the operating guidance for sales, EBIT margin and free cash flow in line with Q3 reporting.

Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “Our most important operational metrics this fiscal year are developing positively in line with our expectations. We are particularly pleased that our BOOST strategy is making a decisive contribution to a lasting, continuous increase in profitability. In addition, we successfully secured long-term refinancing in September with our latest successful bond issue, which included our first green bond.” 

The operational results for the first nine months of 2024 are again evidence of Knorr-Bremse’s resilience. The strong performance of the Rail Vehicle Systems division (RVS) made a significant contribution to comprehensive income. The Commercial Vehicle Systems division (CVS) performed robustly considering the challenging market environment for the commercial vehicle industry, which was expected. The order intake of € 6,182 million was largely stable and in line with the previous year’s level (9M 2023: € 6,216 million). The order book, adjusted for Kiepe Electric, increased by 7.0% to € 7,058 million as at September 30, 2024 (September 30, 2023: € 6,598 million excluding Kiepe Electric). Consolidated revenues grew by 2.3% to € 5,883 million (9M 2023: € 5,748 million excluding Kiepe Electric).

Profitability in the Group increased, being influenced by positive economies of scale from the increased sales in the rail division, targeted efficiency initiatives, and active portfolio management. Operating EBIT improved significantly by 13.5% to € 724.8 million, and the margin grew accordingly from 10.9% in the previous year’s period to 12.3%, an increase of 1.4 percentage points. Free cash flow improved significantly in the first nine months of the year to € 248 million (9M 2023: € 65 million). The cash conversion rate in the third quarter was 132%, and 55% in the first nine months.
 

Overview of Developments in Both Divisions

Rail Vehicle Systems Division (RVS):

• Order intake increased due to the persistently high demand in the global rail market, up a robust 9.2% to € 3,323 million (9M 2023: € 3,044 million)
• The order book increased to € 5,222 million (September 30, 2023: € 4,575 million excluding Kiepe Electric)
• Revenues improved 12.3% to € 2,962 million (9M 2023: € 2,638 million excluding Kiepe Electric)
• Operating EBIT rose by a significant 19.4% to € 463 million (9M 2023: € 387 million)
• The operating EBIT margin increased to 15.5% (9M 2023: 14.1%)

Commercial Vehicle Systems Division (CVS):

• Order intake amounted to € 2,861 million (9M 2023: € 3,174 million)
• Given the challenges in the commercial vehicle market, the order book remained at a high level of € 1,838 million as at September 30, 2024 (September 30, 2023: € 2,024 million)
• Sales in the first nine months of the year, at € 2,922 million, remained 6.1% behind the comparable period of the previous year purely for market-related reasons (9M 2023: € 3,112 million)
• Operating EBIT improved by a solid 4.7% to € 314 million (9M 2023: € 300 million)
• The operating EBIT margin increased accordingly to 10.7% (9M 2023: 9.6%)

Guidance for 2024 Raised Slightly

Taking into account the purchase of Alstom Signaling North America, which closed successfully in early September, the Executive Board is now raising its revenue guidance, as already announced, to € 7,800 million to € 8,100 million (previously € 7,700 million to € 8,000 million). Due to the positive operational developments, especially in the Rail Vehicle Systems division, Knorr-Bremse is continuing to expect an operating EBIT margin between 11.5% and 13.0% and free cash flow between € 550 million and € 650 million.

The interim report for the January to September 2024 period is available on the Knorr-Bremse AG website. Notes to and reconciliations with the financial indicators used can be found in the 2023 Annual Report of Knorr-Bremse AG.

Key Figures of Knorr-Bremse Group

Key Figures for the Knorr-Bremse Group's divisions

¹ Each adjusted for Kiepe Electric
² Adjusted in 2023

Dr. Nicolas Lange, Member of the Executive Board of Knorr-Bremse AG with global responsibility for the Rail division: “Safety and reliability are key criteria for rail transportation – and largely depend on braking systems and signaling technology, as well as rail infrastructure. Entering the signaling market in North America is a logical step on our way to becoming a systems and platform partner supplying safety-critical, mission-critical solutions to the rail industry. The signaling business is suitably profitable, enjoys a high share of the service segment as a long-term revenue driver, and offers major opportunities for further development – for example in terms of digitalization, internationalization and market expansion. We welcome our fantastic new Signaling team into the company and look forward to working with our new colleagues as we grow together, launch major new projects and achieve great things – in North America and beyond.”

All North American business activities acquired

With this transaction, Knorr-Bremse has acquired the conventional signaling product portfolio, sales, service, and manufacturing operations of Alstom Signaling North America, primarily in the USA and Canada. The nearly 800 team members will become employees of KB Signaling, a standalone business under the North American rail organization. With two production plants and numerous engineering facilities in the USA, the new business unit operates in six major locations. Over the last financial year ending March 31, 2024, Alstom Signaling North America generated around EUR 300 million in revenues with an EBIT margin of around 16 percent.

Acquisition a perfect fit for Knorr-Bremse’s BOOST strategy

In line with Knorr-Bremse’s BOOST 2026 strategic program, the company is focusing on cutting-edge, highly profitable product areas that match the deep understanding of safety-critical, mission-critical solutions embedded in Knorr-Bremse’s DNA. Knorr-Bremse also has in-depth experience of entering complex markets and meeting the highest local approval and technology standards. Entering the rail signaling market segment represents a positive step toward achieving the company’s strategic objectives.

Five broad categories make up the new KB Signaling unit’s North American conventional CCS platform and solutions: wayside train and crossing control, and relays and track products – solutions that make up the vast majority of the portfolio, in addition to onboard train control, train supervision, as well as a robust set of Wayside Intelligence solutions, including data analytics. With coast-to-coast coverage, the portfolio is Buy America compliant and supported by solid R&D.

On this basis, the company’s new Signaling business unit is already well positioned in the North American signaling market and ready to further expand its leadership by offering innovative CCS solutions. In the medium term, Knorr-Bremse aims to establish itself as an international Tier 1 systems and platform partner for train manufacturers, rail operators, and infrastructure and signaling technology firms. The company’s existing business activities in the European signaling market will be folded into the Signaling business unit.

Signaling represents significant global market opportunity

In particular, Knorr-Bremse sees business development opportunities in the further development of the company’s product portfolio, the creation of new solutions for smart interaction between trackside signaling technologies and onboard (braking) technologies, and new strategic acquisitions. Knorr-Bremse aims to help raise levels of safety, availability, reliability and operating efficiency in passenger and freight rail transportation by offering scalable solutions for the North American market, but also for the key European and Asian markets. Knorr-Bremse estimates that for the Rail division, the potential size of the global market for CCS rail signaling technology may be as much as EUR 20 billion.

Digitalization: infrastructure condition monitoring as growth area

The huge installed base of signaling products in rail operations offers major business opportunities, especially in view of the ongoing digitalization of rail transportation. Apart from the attractive aftermarket share, digital products and services for analyzing and processing infrastructure data are certain to interest many customers. Knorr-Bremse’s data solutions and software-as-a-service offerings could provide rail and fleet operators with, for example, precise updates on the condition and – based on factors such as weather and temperature – possible maintenance or repair requirements of their infrastructure.

Frank Weber, Chief Financial Officer of Knorr-Bremse AG: “Our revenue-boosting and efficiency measures are proving to be extremely effective. The significant and, most importantly, continuous improvement of our margins is the best evidence of this. Accordingly, free cash flow has improved significantly as well. We are working hard to maintain this positive trend.” 

With its results for the first half of 2024, Knorr-Bremse is clearly demonstrating its above-average performance as well as the resilience that is characteristic of the company. The order intake was € 4,239 million and remained stable in comparison with the previous year (H1 23: € 4,236 million) thanks to the continued high demand in the Rail Vehicle Systems division and despite the slowdown in the truck market. The order book as at June 30, 2024, adjusted for Kiepe Electric, had risen to € 6,848 million (June 30, 2023: € 6,522 million excluding Kiepe Electric). Consolidated revenues improved 2% to € 3,987 million (H1 23: € 3,917 million).

Alongside positive economies of scale from higher revenues, the targeted efficiency measures and attractive new contracts made a positive impact on the operating EBIT of € 490 million, a significant 18.0% boost year over year. This resulted in the operating EBIT margin improving from 10.6% in the previous year’s period to 12.3%, a significant increase of 170 basis points. In terms of free cash flow, Knorr-Bremse also saw a significant year-over-year increase, reaching € 64 million in the first half of the year (H1 23: € ‑165 million).

Overview of H1 2024 Developments in Both Divisions

Rail Vehicle Systems Division (RVS):

• Order intake rose to € 2,202 million (H1 23: € 2,025 million) thanks to unabated strong demand in the global rail market
• The order book, adjusted for Kiepe Electric, increased to € 4,881 million (June 30, 2023: € 4,461 million excluding Kiepe Electric).
• Revenue was up a significant 9.2% at € 1,981 million (H1 23: € 1,813 million).
• Operating EBIT improved significantly and rose 20.0% to € 304 million (H1 23: € 253 million)
• The operating EBIT margin increased robustly to 15.3% (H1 23: 14.0%)

Commercial Vehicle Systems Division (CVS):

• Order intake amounted to € 2,038 million (H1 23: € 2,212 million).
• The order book reached € 1,969 million as of June 30, 2024, remaining at a high level (June 30, 2023: € 2,063 million).
• Revenues were at € 2,007 million in the first half of the year, slightly down compared with the previous year (H1 23: € 2,105 million)
• Operating EBIT rose by a significant 15.5% to € 223 million (H1 23: € 193 million).
• The operating EBIT margin improved to 11.1% (H1 23: 9.2%)
   

Continuity on the Executive Board: Bernd Spies’s Contract Renewed

The Supervisory Board of Knorr-Bremse AG ensured continuity in the Executive Board team in June 2024 by announcing it would renew the contract of Bernd Spies (aged 58) as an Executive Board member. Effective March 2025, Bernd Spies will be responsible for the Commercial Vehicle Systems division globally for a further five years and will be able to keep driving the development of the truck division consistently (see press release from June 26, 2024).

Increased guidance confirmed

Knorr-Bremse raised its guidance forecasts for the current 2024 fiscal year on July 29, 2024 (see press release from July 29, 2024). The company expects revenues between €7,700 million and €8,000 million, an operating EBIT margin between 11.5% and 13.0%, and a free cash flow between €550 million and €650 million.

This guidance does not take into account the acquisition of the rail signalling technology business of Alstom in North America, which has yet to be completed.

The interim report for the January to June 2024 period is available on the Knorr-Bremse AG website. Notes to and reconciliations with the financial indicators used can be found in the 2023 Annual Report of Knorr-Bremse AG.

Key Figures of Knorr-Bremse Group

¹ Each adjusted for order book of Kiepe companies
² Adjusted in 2023

Key Figures for the Knorr-Bremse Group's divisions

Bernd Spies, member of the Knorr-Bremse AG Executive Board and responsible for the Commercial Vehicle Systems division: “For us, the sale of our GT Emissions Systems subsidiary represents the next critical progression in the optimization of our truck division’s portfolio. In future, we are going to concentrate even more strongly on our core competencies. In Rcapital Partners, we have found a buyer for GT Emissions Systems capable of excellently developing and fully leveraging the company’s potential.”

The global Engine Air portfolio of GT Emissions Systems comprises exhaust throttle and exhaust gas recirculation valves, among other things. The company supplies leading manufacturers with emission control systems for diesel engines in on- and off-highway vehicles. GT Emissions Systems’ solutions make a key contribution for diesel engine manufacturers to meet the international emission standards that apply to them. GT Emissions Systems’ sales in the 2023 fiscal year came to approximately € 70 million.

The disposal of GT Emissions Systems is already Knorr-Bremse’s third successful sale of an investment this year under its BOOST 2026 (Knorr-Bremse Operational Optimization Strategy and Transformation) program. Overall, Knorr-Bremse is working on a large number of strategic initiatives and measures for safeguarding lasting, profitable growth over the coming years.

Marc Llistosella, CEO of Knorr-Bremse AG, commented: “By extending Bernd Spies’s contract, the Supervisory Board of Knorr-Bremse AG has prioritized the continuity of the Executive Board team. Bernd Spies has already made a major contribution to the successful development of our company and of the Commercial Vehicle Systems division. The entire Executive Board is delighted that Bernd Spies will continue his work as a trusted member of our team.”

Bernd Spies, Member of the Executive Board of Knorr-Bremse AG, responded: “I would like to thank Knorr-Bremse’s Supervisory Board for their confidence in me, and look forward to working together with the Executive Board team and indeed, the entire Knorr-Bremse team, as we continue our successful efforts to build our company’s long-term future.”

Dr. Nicolas Lange, Member of the Executive Board of Knorr-Bremse AG with global responsibility for the Rail division, commented: “As part of our growth strategy, Knorr-Bremse aims to make the most of opportunities to further expand our rail business in all areas of activity. We believe digital innovations in particular, such as the data and cloud solutions proposed by Nexxiot, have enormous potential. This is why, as the largest shareholder, we support Nexxiot’s ongoing strategic development and the associated personnel and organizational changes. By making these changes, Nexxiot is investing in its development expertise and business success, and in growing as close as possible to its customers. At the same time, they also represent an important, logical step in Nexxiot’s plans for future growth.”

Dr. Maximilian Eichhorn, Nexxiot’s new CEO, responded: “Nexxiot has a clear vision – to make international freight transportation by rail and sea safer, cleaner and more efficient by means of intelligent technology. At the same time, Nexxiot has reached a key phase in its development; the decisions we take now will determine the company’s future. As the new CEO, I would like to thank the Supervisory Board for the trust they have placed in me. Together with the great team at Nexxiot, I look forward to tackling the challenges that lie ahead. Among other things, we aim to strengthen our relationships with our customers in the global rail and maritime industries by building strong, long-term partnerships. We also aim to drive forward the development of our high-quality products, further improve our culture of collaboration, and enhance our performance by focusing on sustainable measures.”

In spring 2022, Knorr-Bremse acquired a strategic stake in Nexxiot. Since then, the company has become Nexxiot’s largest shareholder. At the time of the initial investment, the two companies signed a comprehensive cooperation agreement covering the development of intelligent, connected solutions for the rail industry; this close collaboration has already enabled the partners to achieve groundbreaking milestones. Among other things, the two companies have presented a smart suite of products for digital trains that will enable rail operators to optimize their vehicle utilization, fleet operations and maintenance by taking advantage of intelligent data insights. In turn, this will boost train availability and reliability. Nexxiot employs around 120 people worldwide, most of whom work in Switzerland, the USA and the Nordic countries.

Marc Llistosella, Chief Executive Officer (CEO) of Knorr-Bremse AG: “We are very happy with the strong start in 2024. Not only did we bring in solid financial results, but we also achieved the first important milestones of our BOOST 2026 strategy program. The sales of Kiepe Electric and SafetyDirect are evidence of our successful portfolio optimization. At the same time, we are determinedly carrying out a transformation of the Group, and the recently announced acquisition of Alstom’s rail signaling technology business in North America is a good example of this. The purchase is a boost for our rail business and is particularly valuable for us thanks to the promising market development, high margins, and its very profitable service business.”

Frank Weber, Chief Financial Officer (CFO) of Knorr-Bremse AG: “The revenue increase and strong margin development in the first quarter are a good basis for the current fiscal year.  They reflect our variety of efficiency-raising measures as well as successful pricing adjustments. Knorr-Bremse has a strong balance sheet, which provides a high degree of flexibility for us operationally. The acquisition that we are working toward should not impact our strong credit rating.”

Despite the still-challenging economic market conditions, Knorr-Bremse successfully recorded very good order intake in the first three months of 2024. Its two divisions each received orders valued at over one billion euros. Consequently, the total order intake reached € 2,112 million (Q1 2023: € 2,176 million), thanks in particular to the robust rail market and its extraordinarily high demand. The order book, adjusted for Kiepe Electric, grew to € 6,728 million as at March 31, 2024 (March 31, 2023: € 6,513 million excluding Kiepe Electric). Consolidated revenues improved 3.5% to € 1,974 million (Q1 2023: € 1,908 million), which is in particular due to a significant 12.7% revenue increase in the Rail division. In the Truck division, the revenue decline of 4.0% was less strong than expected.

Alongside the overall positive revenue development, there were efficiency measures and successful pricing initiatives ensuring strong operating EBIT growth of 24.2%. This results in growth of operating EBIT margin from 10.0% in last year’s quarter to 12.1%. Knorr-Bremse also achieved a significant improvement of its free cash flow, which, at € -95 million in the first quarter, was up more than € 100 million year over year (Q1 2023: € -199 million).

Overview of Strong Development in Both Divisions
 

Rail Vehicle Systems Division (RVS):

• Order intake rose to € 1,062 million thanks to very strong demand (Q1 2023: € 1,000 million).
• The order book, adjusted for Kiepe Electric, increased to € 4,739 million (March 31, 2023: € 4,424 million excluding Kiepe Electric).
• Revenue was up a significant 12.7% at € 964 million (Q1 2023: € 855 million).
• Operating EBIT improved by 30.1% from the corresponding prior-year figure to € 146 million (Q1 2023: € 112 million).
• The operating EBIT margin improved by a significant 200 base points to 15.1% (Q1 2023: 13.1 %)

Commercial Vehicle Systems Division (CVS)

• Order intake amounted to € 1,051 million (Q1 2023: € 1,176 million).
• The order book was worth € 1,991 million as at March 31, 2024, remaining at a high level (March 31, 2023: € 2,091 million).
• Revenues reached € 1,011 million in the first quarter (Q1 2023: € 1,053 million).
• Operating EBIT rose by a significant 16.8% to € 111 million (Q1 2023: € 95 million).
• The operating EBIT margin increased from 9.0% in Q1 2023 to a very robust 11.0%.

Guidance

Knorr-Bremse is confirming its guidance for the 2024 fiscal year. Accordingly, the company expects revenues between € 7,700 million and € 8,000 million, an operating EBIT margin between 11.5% and 12.5%, and free cash flow between € 550 million and € 650 million.

The full quarterly report is available at www.knorr-bremse.com. Notes to and reconciliations with the financial indicators used can be found in the 2023 Annual Report of Knorr-Bremse AG (available under Investor Relations/Annual Report).

Knorr-Bremse Group Key Performance Indicators:

¹ Each adjusted for order book of Kiepe companies
² Adjusted in 2023
 

Key Figures for the Knorr-Bremse Divisions:

Moreover, the shareholders agreed with around 95% to the modified remuneration system for the Executive Board, which puts an even stronger focus on the company’s profitability and earnings as well as its sustainability (ESG). Simultaneously, the modification increases the transparency of the system and reflects general developments in remuneration systems. 

The Annual General Meeting was held virtually. A total of roughly 90% of the share capital of Knorr-Bremse was represented at the Annual General Meeting.

A recording of the speeches given by the Chairman of the Supervisory Board and the members of the Executive Board, and the detailed results of the votes on the individual agenda items at the meeting will be available at www.ir.knorr-bremse.com in the near future.

Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG: “This acquisition is good for Knorr-Bremse and will drive our profitable growth further. With it, we are not just building on our highly profitable rail business. Rather, we will also become one of the US market leaders in North America in the rail control, command, and signalling segment, or CCS for short. The transaction pursues a compelling industrial logic and is a very good match for our development and growth path, as we announced in our ‘BOOST 2026’ strategy program. We at Knorr-Bremse are putting our plans into action. We are delighted that we will soon welcome new colleagues to the Knorr-Bremse team, too.”

The acquisition is a significant step in the transformation from a supplier of vehicle systems to a supplier of systems for the entire rail ecosystem, explains Dr. Nicolas Lange, member of the Knorr-Bremse AG Executive Board and responsible for the Rail Vehicle Systems division: “For Knorr-Bremse, the acquisition of Alstom Signaling North America means a successful entry to the CCS segment. The CCS market is of approximately € 20 billion globally, making it a highly attractive rail segment. For us as an international systems supplier, the transaction is a substantial step forward in electronics and digitalization in rail infrastructure. Brakes and signalling technology have a critical influence on the safety and capacity of rail transportation. The CCS segment fits into the DNA of the Knorr-Bremse Rail division amazingly.”

From today’s perspective, it is believed that the acquisition will be accretive right from the outset. The appeal of the CCS market comes from the market entry barriers, resulting from local approval and technology standards; a focus on safety in operation and availability, and large and continuous shares of the aftermarket. Knorr-Bremse has been intimately familiar with this market-specific environment for decades. This will be significant support for the integration of the company and future business development.

Alstom Signaling North America by far has the largest installed base of signal box technology, train detection, and rail crossings, especially in the freight segment, as well as a very large share of the aftermarket. In the future, Knorr-Bremse will be able to offer a CCS technology platform to operators and system providers in North America under one roof. Simultaneously, the acquisition strengthens the position of the Rail Vehicle Systems division in the digitalization business thanks to the access to a large volume of infrastructure data that can be provided to operators as a data service or “software as a service.”

A purchase price of around EUR 630 million was agreed. This includes a mid-double-digit million EUR amount for additional expected and highly profitable project business, which should support the revenue growth mid-term. Alstom Signaling North America attained revenues of about EUR 300 million and an EBIT margin of approximately 16% according to the preliminary results in the past fiscal year which ended on March 31, 2024. The acquisition is to be financed from available liquidity and debt and should not affect the credit rating.

The dividend payment requires the shareholders’ approval at the virtual Annual General Meeting, for which invitations have been sent for April 30, 2024: Investor Relations / Annual General Meeting. In addition to the appropriation of the net profit, the shareholders will be presented proposals for approval of matters such as modifications to the Executive Board remuneration system.

Information about the previous fiscal year can be found in the 2023 Annual Report, which is available to download at www.knorr-bremse.com.

Bernd Spies, Member of the Executive Board of Knorr-Bremse AG and responsible for the Commercial Vehicle Systems division, notes that: “With the sale of our SafetyDirect product line, we’re continuing the successful optimization of our Truck division’s portfolio. Bendix, our North American subsidiary, will focus even more intensively on its range of core competencies, including braking, steering, and advanced driver assistance systems (ADAS), going forward. In Rand McNally, we have found an ideal buyer for SafetyDirect, who will be able to further develop and fully leverage its potential in the future."

SafetyDirect provides fleet operators with comprehensive feedback on their fleet and drivers, along with videos of severe events. Using data from Bendix ADAS, SafetyDirect gives fleets key insights into common driving behaviors and trends across their operations. Rand McNally will continue to offer integrated data from Bendix braking and driver assistance systems as part of SafetyDirect, further expanding sales opportunities with customers of both companies.

For Knorr-Bremse, the divestment of SafetyDirect is another step forward for the company’s BOOST 2026 program (Knorr-Bremse Operational Optimization Strategy and Transformation). Over the next few years, Knorr-Bremse aims to achieve sustainable, profitable growth through a series of strategic initiatives and measures. Bendix will receive an equity stake in and an observer seat on the Board of Directors of Rand McNally. After the sale, Bendix will provide marketing, data, and product integration support to Rand McNally, helping to enable a cohesive, coordinated approach for optimized customer solutions.

Frank Markus Weber, Chief Financial Officer of Knorr-Bremse AG: “We are very satisfied with the development of our financial performance indicators in the 2023 fiscal year. We have successfully managed to fully offset the inflation-driven cost increases of just under € 300 million. The cost control measures we implemented with discipline, the pricing negotiations we completed successfully, and the inventory and receivables management we optimized further all contributed to an improvement in profitability and excellent free cash flow. Our robust balance sheet puts us in a position where we can respond to the diverse macroeconomic challenges while simultaneously enjoying a great degree of financial flexibility to seize opportunities. The low net debt and our cash and cash equivalents of roughly € 1.4 billion underscore our company’s solid foundation.”
 

Profitability Up

The global economy continued to face pressure in the 2023 fiscal year, and inflation only went down slowly in many regions. Moreover, the negative impacts of Russia’s war on Ukraine remain a burden on the global markets. Knorr-Bremse was able to increase its consolidated revenues due to the sustained, pleasing customer demand and saw a 10.9% rise to € 7,925.6 million (previous year: € 7,149.7 million). Both divisions contributed equally to these positive developments. Profitability also improved through the cross-divisional Profit & Cash Protection Program (PCPP) in particular, with the operating EBIT margin reaching a value of 11.3% (previous year: 11.1%) and operating EBIT coming in at € 893.1 million (previous year: € 794.6 million). The free cash flow, which has risen to € 553.1 million (previous year: € 219.3 million), also demonstrates the positive effects of the active countermeasures. Thanks to a strong second half and a remarkable fourth quarter in particular, the cash conversion rate reached 93% and therefore slightly above the desired target range of 80% to 90%.
 

New Records for Order Intake and Order Book

Knorr-Bremse continued to record high customer demand in the previous fiscal year. At € 8,252.2 million (previous year: € 8,114.1 million), the order intake is approximately 1.7% higher than the previous year. The order book of roughly € 7,082.3 million as at December 31, 2023, saw a 2.5% increase year over year (previous year: € 6,907.5 million) and thus reached a new all-time high at year end.
 

Strong Revenue Development in Rail Vehicle Systems Division (RVS)

Demand in the rail vehicle market was robust in all regions. Europe and North America performed particularly positively, while China was assisted by a return to rising passenger numbers. During the 2023 fiscal year, the RVS division increased its revenues by 10.2% from 2022, bringing them to € 3,747.5 million (previous year: € 3,401.9 million). Due to economies of scale, the efficiency measures implemented, pricing measures on the part of customers, and an improved share of aftermarket revenue, the operating EBIT margin reached 14.3% (previous year: 14.9%). The division’s order intake of € 4,042.5 million represented a slight decline of 2.9% (previous year: € 4,161.9 million). The order book of € 5,132.3 million as at December 31, 2023 (previous year: € 4,918.9 million), had also grown.
 

Significant Revenue Increase and Record Order Book in Commercial Vehicle Systems Division (CVS)

Demand in the global commercial vehicle market was at a good level in the previous year. Truck production rates in Europe and North America developed positively year over year while China boasted an increase of more than 50%. With a significant 11.5% increase in revenue to € 4,180.2 million (previous year: € 3,750.0 million), the division achieved strong results in the 2023 fiscal year as well. The division’s profitability was exceedingly positive with an operating EBIT margin of 10.0% (previous year: 9.0%). Order intake was up 6.5% at € 4,212.2 million (previous year: € 3,954.3 million). The order book was valued at € 1,951.7 million at year end (previous year: € 1,989.8 million).
 

BOOST Strategy: Portfolio Adjustment Launched Successfully

With “BOOST 2026” (Knorr-Bremse Operational Optimization Strategy and Transformation), Knorr-Bremse has launched an array of strategic initiatives and measures to ensure sustainable and profitable growth over the coming years. They include an ongoing review of the business portfolio in relation to performance and business fit.

As part of this process, Knorr-Bremse sold Kiepe Electric, an RVS business unit based in Düsseldorf, to Heramba, with the transaction closing in late January 2024.
 

Sustainable Corporate Strategy: Climate Protection Targets Expanded

Rating agencies such as CDP, ISS ESG, Sustainalytics, and S&P Global are recognizing the further reinforcement of ESG structures, the ongoing implementation of climate protection projects, and the steady entrenchment of sustainability in decision-making processes at Knorr-Bremse during the previous fiscal year and are awarding significantly improved ratings.

In terms of climate protection, Knorr-Bremse has committed to a long-term target of net zero emissions (Scopes 1 to 3) by 2050. Moreover, expanded climate targets[1] validated by the Science Based Target initiative (SBTi) were set in 2023 and comprise direct production emissions (Scopes 1 and 2) as well as significant emissions from the supply chain and product usage (Scope 3).
 

Guidance for 2024

Assuming that exchange rates remain stable and that the geopolitical and macroeconomic environments remain mostly stable, the company expects revenues between € 7,700 million and € 8,000 million (excluding Kiepe Electric revenues), an operating EBIT margin of 11.5% to 12.5%, and free cash flow between € 550 million and € 650 million for the 2024 fiscal year.

[1] Knorr-Bremse AG commits to reduce absolute scope 1 and 2 GHG emissions 75% by 2030 from a 2018 base year. Knorr-Bremse AG also commits to reduce absolute scope 3 GHG emissions from purchased goods and services, upstream transport and distribution and use of sold products 25% by 2030 from a 2021 base year.

The figures presented here are preliminary and unaudited. The full annual financial statements and annual report will be published on www.knorr-bremse.com on March 21, 2024.

A video recording of the annual press conference with Chief Executive Officer (CEO) Marc Llistosella and Chief Financial Officer (CFO) Frank Markus Weber on the preliminary figures for the 2023 fiscal year will be provided in the Knorr-Bremse Newsroom section of our website.

A webcast for investors with Chief Executive Officer (CEO) Marc Llistosella and Chief Financial Officer (CFO) Frank Markus Weber on the preliminary figures for the 2023 fiscal year will be held today at 1 p.m. (CET). The presentations are available on our website at www.knorr-bremse.com.

Knorr-Bremse Group Key Performance Indicators

Rail Vehicle Systems Division (RVS) Key Performance Indicators

Commercial Vehicle Systems Division (CVS) Key Performance Indicators

Dr. Nicolas Lange, member of the Knorr-Bremse AG Executive Board and responsible for the Rail Vehicle Systems division: “With its focus on electric vehicle equipment, Kiepe Electric has proved to be a dynamic, efficient business unit. Overall, however, only a small amount of synergy could be achieved between Kiepe Electric and the Rail Vehicle Systems division, which is why we made the decision to separate from Kiepe Electric. This process has now reached a successful and final conclusion following the sale. We thank all the Kiepe employees for their fantastic dedication and wish them all the best for their future under the new owner.”

Frank Markus Weber, Chief Financial Officer of Knorr-Bremse AG, added: “The ongoing review of our business portfolio’s performance and its fit with our strategy is going successfully. With the sale of Kiepe Electric, we have now reached another important milestone, and Kiepe Electric will be able to focus clearly on its own strengths and business”.

The transaction consists of the acquisition of all Kiepe Electric business activities and all employees by Heramba GmbH, based in Berlin. In October 2023, Heramba entered into a business combination agreement with Project Energy Reimagined Acquisition Corporation (PERAC). Following consummation of the business combination, the combined company’s securities are expected to be listed on The Nasdaq Stock Market LLC.

The sale of Kiepe Electric is an important step for Knorr-Bremse in its BOOST program. On the whole, Knorr-Bremse is seeking to grow sustainably and profitably over the next few years by applying a range of strategic initiatives and measures. Knorr-Bremse will continue to hold a 15 percent interest in Kiepe Electric’s capital. 

Kiepe Electric is a global leader in the electrification of road and rail urban transportation applications, including designing, manufacturing and implementing power electronics products, electric drives and vehicle controls hardware for rail vehicles and electric buses. There is also intelligent software for fleet management and energy management. The company's software provides a holistic end-to-end dashboard from the charging systems to the end-vehicle. Kiepe Electric is also a specialist in vehicle charging solutions and is a leading supplier of In-Motion Charging solutions for buses. In 2022, Kiepe Electric introduced its proprietary High Power Charging platform, which facilitates vehicle fast charging and energy management for battery-electric buses. Kiepe Electric employs more than 550 people at six international locations in Europe and North America, developing efficient and ecologically sustainable concepts for the mobility transition in public transport.

Frank Markus Weber, Chief Financial Officer of Knorr-Bremse AG: “We were able to achieve further pleasing revenue growth in the last three months. At € 1.9 billion, this represents an increase of 8% on the same quarter last year. Our greater profitability stems from the successful implementation of our Profit and Cash Protection Program (PCPP), which is part of BOOST 2026. Operating EBIT improved continuously and rose to € 224 million in the quarter just ended, with an operating EBIT margin of 11.5%. This development was bolstered by cost control measures and successful price negotiations. Thanks to an improved working capital and larger customer payments, we were able to significantly improve free cash flow to € 230 million and raise the cash conversion rate to almost 170 % in the third quarter of 2023.”

Strong Performance in the First Nine Months of the Year

The order intake at Knorr-Bremse AG in the first nine months of 2023 amounted to € 6,216 million (9M/22: € 5,917 million), again up on the previous year by a rate of 5.1%. This is primarily the result of a very clear recovery in demand in the commercial vehicle business in all regions. The positive order levels are also reflected in the 4.6% growth of the order book, producing a new record of approximately € 7,191 million as at September 30, 2023 (September 30, 2022: € 6,878 million). This ensures that capacity will be utilized robustly in the coming quarters. Consolidated revenues also rose in the first nine months of 2023, up 12.7% to € 5,856 million (9M/22: € 5,198 million), which is attributable to growth in the OE and aftermarket business of both segments.

The positive revenue development was complemented by the successful implementation of cost control measures as well as successful price negotiations with customers and improved working capital management, contributing to the improvement in the operating EBIT margin and free cash flow. The operating EBIT margin in the first nine months of 2023 was 10.9% and remained at the previous year’s level (9M/22: 10.9%). Operating EBIT improved from € 568 million in the previous year’s quarter to € 639 million. The positive development of free cash flow, which was € 34 million in the second quarter of 2023, continued in the third quarter at € 230 million thanks to the crossdivisional “Collect” project for systematically improving net working capital. This is an exponential increase on the previous year’s quarter (Q3/22: € 38 million). Free cash flow thus improved significantly in the first nine months of the year, rising to € 65 million from € 229 million in the same period last year.

Rail Vehicle Systems: Strong Developments in Customer Demand and Order Intake

The Rail Vehicle Systems (RVS) division is performing very positively in all markets. Its revenue, at € 2,746 million in the first nine months of 2023, has risen by a significant 11.9% year over year (9M/22: € 2,453 million) thanks to increases in volumes and prices. Order intake was up 1.3% at € 3,044 million (9M/22: € 3,006 million) and the order book as at September 30, 2023, had reached a new record of € 5,168 million (September 30, 2022: € 4,844 million).

Despite the increase in sales volumes, the division only recorded a slight 3.8% increase in operating EBIT to € 387 million, compared with the previous year’s corresponding figure of € 373 million. The operating EBIT margin of 14.1% was 1.1 percentage points below the previous year’s figure (9M/22: 15.2%). The main factor influencing this is the longer-term original equipment contracts that were won before the Russian invasion of Ukraine and, accordingly, before the significant rise in inflation. These contracts do not allow inflation-related cost increases to be passed on. Price adjustments for new orders and cost control measures have only been able to partially offset the inflation-related cost increases. The positive effects from new contracts will already become noticeable over the next year through the gradual reduction of existing orders on old pricing terms.

As a key supplier of the rail industry, Knorr-Bremse places an emphasis on developing and enhancing innovative and leading solutions for maximum safety, increased availability, efficiency, and punctuality in rail transportation. With the latest generation of the CubeControl product, the world’s most frequently installed brake control, Knorr-Bremse is again putting into use a high-quality technology as an update of a successful product. Knorr-Bremse has signed a contract for it with Alstom to equip a fleet of Swedish high-speed trains starting in 2024, with an order value in the lower two-digit million range. The enhanced CubeControl integrates numerous components in an even better way, enabling a smarter interaction of electropneumatic, mechatronic, and software technologies. The Alstom order is planned to run until 2028.

Commercial Vehicle Systems: Robust Quarterly Performance and Further Concentration on Innovation Capabilities

The order intake in the Commercial Vehicle Systems (CVS) division in the first nine months of 2023 amounted to € 3,174 million (9M/22: € 2,913 million) and displayed a normalization at a high level in the third quarter of 2023 following record intake in the preceding quarters. The order book, at € 2,024 million as at September 30, 2023, remains stable in comparison with the same period the previous year (September 30, 2022: € 2,035 million), which is primarily attributable to the high demand in Europe and Asia. Revenue development has been particularly positively influenced by the stable truck production figures in Europe and North America, the significant increase in China, and successful price adjustments. The division’s revenue increased by a significant amount once again, up 13.3% to € 3,112 million (9M/22: € 2,747 million).

As expected, profitability developed positively as the quarter progressed, with operating EBIT in the CVS division improving in the third quarter of 2023 to € 107 million (Q3/22: € 87 million) to make for € 300 million in the first nine months of the year (9M/22: € 237 million). The operating EBIT margin was 10.6% after 9.2% in the previous year’s quarter and 9.3% in the second quarter of 2023. The price negotiations and cost control measures that were successfully wrapped up or implemented recently already had a positive influence in the quarter just ended and will continue to do so in the following quarters.

Knorr-Bremse announced in October that it will continue its eCUBATOR innovation unit, established in 2020, beyond 2023 to strengthen Knorr-Bremse’s long-term capabilities. The team at this unit drive innovation and development in the field of e-mobility. Many of the market-oriented products in the categories of air supply, brake control, and wheelend that were developed in the eCUBATOR so far can now be transitioned to regular business operations. In the future, the eCUBATOR team will have an even more intensive focus on new business fields that are related to zero-emission vehicles and offer excellent growth opportunities for Knorr-Bremse.

BOOST 2026 Program: Progress Being Made on Measures to Increase Efficiency and Resilience

In July, as part of its strategy update, Knorr-Bremse launched its BOOST 2026 program (Knorr-Bremse Operational Optimization Strategy and Transformation) with an array of strategic initiatives centering on the three action areas of “products, people, and processes.” One of the main targets is to permanently raise the EBIT margin to over 14% by 2026. A strengthening of the company’s resilience as well as its innovation and technology capabilities are also clearly defined objectives of the BOOST program.

A contribution to this is also being made by, among other things, research and development investment in the form of an expansion of the Knorr-Bremse Technology Center India (TCI), located in Pune, India. Knorr-Bremse is pursuing a growth strategy in both its rail and commercial vehicle divisions in India, which is an emerging transportation market, as well as other key markets. The new TCI will see a planned 1,300 experts driving the development of innovative and pioneering transportation technologies, primarily in the fields of engineering, hardware, software, IT, and simulation, for the rail and commercial vehicle markets for the benefit of the Knorr-Bremse Group’s sites globally.

Executive Board Membership: Continuity and Stability Ensured

The Supervisory Board of Knorr-Bremse AG has ensured the continuity and stability of the full Executive Board with its latest membership decisions. Dr. Nicolas Lange, the long-standing Chairman of the Management Board of Knorr-Bremse Systeme für Schienenfahrzeuge GmbH, was appointed to the full Executive Board with responsibility for Rail Vehicle Systems as of October 1, 2023, replacing Dr. Jürgen Wilder following the latter’s departure.

Moreover, the Supervisory Board has extended the contract of chief human resources officer Dr. Claudia Mayfeld for a further five years with effect from May 2024, doing so prior to her contract’s expiration and thus ensuring in particular that the ongoing transformation process in the corporate culture is maintained with consistency. Claudia Mayfeld continues to have global responsibility for HR, Integrity, Legal Affairs, IP, and Data Protection.

Group Confirms Guidance for 2023

The company is confirming its guidance for the 2023 fiscal year. Assuming that exchange rates remain as they are, that the geopolitical and macroeconomic environments remain mostly stable, that there are no new Covid-19 lockdowns, that inflation-related cost increases are compensated for and that there are no additional supply chain issues caused by potential energy shortages, the company expects revenue between € 7,500 million and € 7,800 million, an operating EBIT margin of 10.5% to 12.0% and free cash flow from € 350 million to € 550 million for the 2023 fiscal year.

The full quarterly report is available on the website under Investor Relations . Explanations and reconciliations of the financial KPIs used can be found in the 2022 annual report of Knorr-Bremse AG .

Key figures for the Knorr-Bremse Group

Key figures Rail Vehicle Systems division (RVS)

Key figures Commercial Vehicle Systems division (CVS)

Dr. Reinhard Ploss, the Chairman of the Supervisory Board of Knorr-Bremse AG, said: “On behalf of the Supervisory Board, I would like to thank Jürgen Wilder for his exceptional commitment to the company and the hard work he did for it. He is someone who truly knows the rail industry inside out. While leading the division, he continued to successfully grow the global rail business of Knorr-Bremse and led it through some challenging times, including the corona crisis. As the company shifts its strategic focus, he has decided to move in a different direction himself. We wish him much success and all the best in his future endeavors.” Dr. Wilder has served on the Executive Board of Knorr-Bremse AG since September 2018.

Dr. Reinhard Ploss added: “I am really happy that the successor question could be settled optimally: Nicolas Lange is a remarkably strong internal successor. Nicolas Lange has been a part of Knorr-Bremse for many years. As Chairman of the Management Board of Knorr-Bremse Rail Vehicle Systems, he has the technical expertise and the international experience needed to lead this business in the best possible way. He is someone who can continue to expand our global rail business and generate the momentum that will lead to new innovations. He stands for both continuity and for the change that the Executive Board initiated several weeks ago as part of its strategic update. Nicolas Lange will be a valuable addition to the Executive Board team led by our Executive Board Chairman Marc Llistosella.”

Dr. Nicolas Lange said: “I would like to thank the Supervisory Board for the trust that they have placed in me. I would also like to thank Jürgen Wilder for the very good working relationship we have enjoyed over the years. He is turning an exceptionally well-positioned, high-potential division over to me. I am really looking forward to a trusting relationship with the entire Executive Board. The rail division is brimming with great ideas and innovations that we will energetically use in future months and years to benefit both our customers and Knorr-Bremse.”

Dr. Nicolas Lange began his career at Knorr-Bremse in 2000 in the Rail Vehicle Systems division, where he climbed, rung by rung, up the career ladder. The mechanical engineer was named division head in 2009. He joined the Management Board of Knorr-Bremse Rail Vehicle Systems in July 2017. He became Chairman of the Management Board in November 2019. Nicolas Lange is 55, married and has three children.