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Knorr-Bremse AG, a leading global supplier of braking and control systems for rail and commercial vehicles, reported robust performance across its divisions in the first half of 2025. The company demonstrated resilience amid market challenges, with notable growth in order intake and revenues in its Rail Vehicle Systems division, while adjusting guidance primarily due to currency effects.
Key Highlights
- Order intake in the Rail Vehicle Systems division surged by 18.0% to €2,600 million.
- The group’s Rail Vehicle Systems order book expanded by 13.8% to €5,555 million.
- Revenues for Rail Vehicle Systems increased by 9.5% to €2,169 million.
- Operating EBIT in Rail Vehicle Systems improved by 14.4% to €347 million, boosting the margin to 16.0%.
- Commercial Vehicle Systems saw revenues decline to €1,989 million due to market, currency, and deconsolidation factors.
- The company confirmed its operating EBIT and cash flow guidance, adjusting revenue expectations to €7,800 million to €8,100 million.
Rail Vehicle Systems Division Performance
The Rail Vehicle Systems (RVS) division experienced significant growth, driven by strong demand across all regions and supported by contributions from KB Signaling. Order intake rose substantially by 18.0% year-on-year, reaching €2,600 million compared to €2,302 million in the prior period. This positive momentum also lifted the order book by 13.8% to €5,555 million as of June 30, 2025, up from €4,881 million a year earlier.
Revenues in the RVS division climbed by 9.5% to €2,169 million, reflecting effective market penetration and operational efficiency. Operating EBIT advanced by 14.4% to €347 million from €304 million, resulting in an improved operating EBIT margin of 16.0%, a rise of 70 basis points from 15.3%. These figures underscore the division’s ability to capitalize on global rail sector opportunities while maintaining cost discipline.
Commercial Vehicle Systems Division Overview
In contrast, the Commercial Vehicle Systems (CVS) division faced headwinds, with order intake at €1,984 million, down from €2,038 million in the previous year. However, the order book showed modest growth, amounting to €2,772 million as of June 30, 2025, compared to €2,690 million previously.
Revenues decreased to €1,989 million from €2,077 million, attributed to market dynamics, currency fluctuations, and the deconsolidation of investments in GT and Sheppard. Operating EBIT fell to €179 million from €225 million, influenced by these factors despite implemented countermeasures. The operating EBIT margin stood at 9.0%, compared to 11.1% in the prior period, highlighting the challenges in the commercial vehicle market.
Updated Guidance and Outlook
Knorr-Bremse confirmed its guidance for operating EBIT and cash flow for the 2025 fiscal year, while revising the revenue range solely due to currency translation effects from levels assumed in February 2025. Assuming stable geopolitical and macroeconomic environments without major tariff impacts, the company anticipates revenues between €7,800 million and €8,100 million. The free cash flow outlook remains unchanged at €700 million to €800 million.
The company noted potential restructuring activities in several regions, expected to incur costs of approximately €75 million in 2025. For detailed financial indicators and reconciliations, refer to the 2024 Annual Report available under Investor Relations on the company’s website.
The interim report for the January to June 2025 period is accessible at www.knorr-bremse.com.
This performance illustrates Knorr-Bremse’s strategic focus on innovation and efficiency in both rail and commercial vehicle sectors, positioning it well for sustained growth amid evolving industry conditions.
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