Knorr-Bremse on course for success with higher profit and profitability

Knorr-Bremse on course for success with higher profit and profitability

• Guidance achieved for 2025
• Operating EBIT tops € 1 billion; EBIT margin expanded to 13%
• Consolidated revenues of € 7.8 billion despite divestments
• Q4 2025 especially successful: strong organic revenue growth of 6.4% with higher profitability in both divisions
• High order book and order intake of € 7.4 billion and € 8.4 billion, respectively
• Free cash flow at all-time high of € 790 million
• Successful implementation of the BOOST strategy: portfolio optimization, cost measures, and focused investments strengthen growth strategy

Munich, February 19, 2026 – Knorr-Bremse posted excellent business performance for the year now ended with its preliminary results for 2025 published today. In a market environment that remained challenging both geopolitically and economically, the figures attest to the strong operational performance of the global market and technology leader for braking systems and leading supplier of other innovative solutions for the rail and commercial vehicle industry.

Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG: “Our very positive business development and strong financial figures for 2025 show that Knorr-Bremse remains on course for success. We have set the stage for sustainable growth and profitability with our BOOST strategy. The fourth quarter in particular was exceptionally good, as we had continuously built up our resilience quarter by quarter. The steady strong performance of our Rail Division is driving our commercial success; the Truck Division also delivered good results in very challenging markets. This year, we will press ahead with our BOOST measures to accelerate our growth, move forward with the digitalization of our solutions, and become an even stronger partner to our customers worldwide. We are expanding our product portfolio by making focused investments like the acquisition of the successful electronics provider duagon in Rail and the leading online booking platform TRAVIS in Truck. At the same time, we are continuing to invest in our existing business, for example by opening our new AI center in Chennai. This will reinforce our digitalization strategy which enables us to tap into opportunities for growth in pioneering fields of technology.”

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 https://ir.knorr-bremse.com/en.

Knorr-Bremse Group Key Performance Indicators:

Key Figures for the Knorr-Bremse Divisions

Media Contacts:

Alexander Stechert-Mayerhöfer | Senior Vice President Corporate Communications | Knorr-Bremse AG

T +49 89 3547 1941; E alexander.stechert-mayerhoefer@knorr-bremse.com

Claudia Züchner | Spokeswoman, Corporate/Finance | Knorr-Bremse AG

T +49 89 3547 2582; E claudia.zuechner@knorr-bremse.com

Investor Relations contact:

Andreas Spitzauer | Head of Investor Relations | Knorr-Bremse AG

T +49 89 3547 0593; E andreas.spitzauer@knorr-bremse.com

About Knorr-Bremse

Knorr-Bremse (ISIN: DE000KBX1006, ticker symbol: KBX) is the global market and technology leader for braking systems and a leading supplier of other innovative solutions for the rail and commercial vehicle industry. Knorr-Bremse’s products make a decisive contribution to greater safety and energy efficiency on rail tracks and roads around the world. Around 30,500 employees (FTE) at over 100 locations in 30 countries develop and produce innovative solutions and services that meet the highest technological standards. In 2025, Knorr-Bremse’s two divisions together generated revenues of approximately € 7.8 billion worldwide. For over 120 years, the Company has been at the cutting edge of its industries, driving innovation in mobility and transportation technologies with a leading edge in connected system solutions. Knorr-Bremse is one of Germany’s most successful industrial companies and profits from the key global megatrends: urbanization, sustainability, digitalization, and mobility.

Disclaimer

This publication has been independently prepared by Knorr-Bremse AG. It may contain forward-looking statements which address key issues such as strategy, future financial results, events, competitive positions, and product developments. These forward-looking statements – like any business activity in a global environment – are always associated with uncertainty. They are subject to a number of risks, uncertainties, and other factors, including, but not limited to, those described in Knorr-Bremse’s disclosures. Should one or more of these risks, uncertainties or other factors materialize, or should underlying expectations not occur or should assumptions prove incorrect, the actual results, performances, or achievements of Knorr-Bremse may vary materially from those described in the relevant forward-looking statements. Such forward-looking statements may be identified by words such as “expect,” “want,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. Knorr-Bremse does not intend, nor does it assume any obligation, to update or revise its forward-looking statements regularly in light of developments which differ from those anticipated.

This publication may include supplemental financial measures – not clearly defined in the applicable financial reporting framework – that are or may be alternative performance measures (non-GAAP measures). Knorr-Bremse’s financial position, financial performance, and cash flows should not be assessed solely on the basis of these alternative supplemental financial measures. Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the applicable financial reporting framework. The calculation by other companies that report or describe similarly titled alternative performance measures may vary despite the use of the same or similar terminology.