Germany's Knorr-Bremse prelim 2025 revenue slightly beats on rail division strength

Knorr Bremse AG

19/02/2026 06:10

Overview

Germany braking systems maker's preliminary 2025 revenue slightly beat analyst expectations

Operating EBIT for 2025 improved, reflecting enhanced cost structures and portfolio optimization

Company achieved record free cash flow of € 790 mln

Outlook

Knorr-Bremse expects 2026 revenues between €8,000 mln and €8,300 mln

Company forecasts 2026 operating EBIT margin around 14%

Knorr-Bremse anticipates 2026 free cash flow between €750 mln and €850 mln

Result Drivers

BOOST STRATEGY - Knorr-Bremse's BOOST strategy, focusing on portfolio optimization and cost measures, drove higher profitability and record free cash flow

RAIL DIVISION - Strong performance of the Rail Division, driven by positive order trends and KB Signaling, supported overall success

DIGITALIZATION INVESTMENTS - Investments in digitalization, including the AI center in Chennai, reinforced growth strategy

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Slight Beat*
EUR 7.82 bln
EUR 7.80 bln (17 Analysts)
FY EPS
EUR 3.33
FY EBIT
EUR 903.30 mln
FY Free Cash Flow
EUR 789.90 mln
FY Orders
EUR 8.42 bln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

Wall Street's median 12-month price target for Knorr Bremse AG is €101.00, about 5.3% below its February 18 closing price of €106.60

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nEQb88dXla

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)