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Knorr-Bremse AG, a global leader in braking systems and supplier of rail and commercial vehicle systems, reported a strong operational performance in 2024, despite geopolitical and economic challenges. The company achieved stable consolidated revenues of €7.9 billion, a record order book of €7.2 billion, and a significant increase in free cash flow to €730 million. The operating EBIT margin grew from 11.3% to 12.3%, reflecting the success of the company’s BOOST 2026 strategy. CEO Marc Llistosella’s contract renewal underscores the Supervisory Board’s confidence in this strategy, while a positive outlook is set for revenue and earnings growth in 2025.
Key Highlights:
- Consolidated revenues remained stable at €7.9 billion.
- Record order book of €7.2 billion ensures a solid base for 2025.
- Order intake remained high at €8.2 billion.
- Operating EBIT margin rose to 12.3% (up from 11.3%).
- Free cash flow hit a record €730 million, up from €552 million.
- Rail Division achieved historic highs with revenues over €4 billion and an EBIT margin of 15.6%.
- Truck Division delivered a double-digit return, with a 10.4% EBIT margin, despite a weakening market.
- Over 60% of targeted sales volume for portfolio optimization achieved.
- Positive guidance for 2025: revenues expected between €8.1–8.4 billion, with EBIT margins of 12.5%–13.5%.
Strong Division Performance and Strategic Initiatives
The Rail Division saw a surge in demand, achieving revenues surpassing €4 billion for the first time, coupled with an 18% increase in operating EBIT to €630 million. The Truck Division, despite market pressures, maintained resilience with a 10.4% EBIT margin, demonstrating the company’s robust operational structure.
Strategically, Knorr-Bremse focused on portfolio optimization, completing four key divestitures and acquiring KB Signaling, enhancing its presence in North America’s signaling technology market. These moves align with the BOOST 2026 program, targeting sustainable growth, cost discipline, and increased profitability.
Positive Outlook for 2025
Knorr-Bremse anticipates continued growth in 2025, projecting revenues between €8.1 and €8.4 billion, an EBIT margin up to 13.5%, and free cash flow ranging from €700–800 million. The company also plans for potential restructuring costs of up to €50 million to optimize its global production footprint.
CEO Marc Llistosella emphasized, “We proved yet again in 2024 that we can handle crises and attain our ambitious goals… In 2025, we want to implement the next level of our BOOST strategy program, focusing on sustainable and profitable growth.” CFO Frank Weber added, “Our BOOST 2026 measures are reaping the desired effects… Cash is King: Profitability is increasing and we achieved the highest operating free cash flow in our 120-year company history.”
The full annual financial statements will be released on March 20, 2025, alongside investor webcasts and additional resources on www.knorr-bremse.com.
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