Knorr-Bremse Hits Record Highs

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Knorr-Bremse AG announced unprecedented achievements in its fiscal year 2023, setting new records across revenues, order intake, and order book, and experiencing a notable turnaround with a boost in its EBIT margin. The company, a global leader in braking systems and a major supplier for rail and commercial vehicle systems, fully met its 2023 guidance, showcasing strong financial resilience and strategic foresight in a challenging economic landscape.

In 2023, Knorr-Bremse saw its strongest revenues in history, with a 10.9% increase to approximately €7.9 billion, driven by robust demand. The order intake reached an all-time high of €8.3 billion, and the order book stood solid at €7.1 billion, ensuring a secure outlook for 2024. The company also reported a positive trend in its operating EBIT margin, which rose to 11.3% from the previous year’s 11.1%, alongside a strong free cash flow of €553 million.

Under the “BOOST 2026” program, Knorr-Bremse has initiated a successful portfolio adjustment, emphasizing cost control and strategic alignment as its top priorities. For 2024, the company forecasts revenues between €7.7 billion and €8.0 billion, an operating EBIT margin of 11.5% to 12.5%, and free cash flow ranging from €550 million to €650 million.

Marc Llistosella, CEO of Knorr-Bremse AG, expressed pride in the company’s performance, attributing it to the workforce’s commitment and the successful launch of new products. CFO Frank Markus Weber highlighted the company’s effective response to inflation-driven cost increases and its disciplined approach to financial management, which contributed to improved profitability and an excellent free cash flow.

Despite global economic pressures and geopolitical tensions, Knorr-Bremse’s consolidated revenues rose significantly, thanks to sustained customer demand. The company’s cross-divisional efforts, particularly through its Profit & Cash Protection Program (PCPP), enhanced profitability, with operating EBIT margin reaching 11.3% and operating EBIT at €893.1 million.

Significant growth was also seen in both its Rail Vehicle Systems (RVS) and Commercial Vehicle Systems (CVS) divisions, with RVS revenues up by 10.2% and CVS revenues increasing by 11.5%. The company’s strategic initiatives, including the sale of Kiepe Electric to Heramba and the reinforcement of its ESG structures, underscore its commitment to sustainable and profitable growth.

As Knorr-Bremse looks ahead to 2024, it remains focused on maintaining financial stability and seizing growth opportunities, driven by a comprehensive strategy that includes climate protection targets and the pursuit of net-zero emissions by 2050.