Knorr-Bremse Reports Profit Surge, Robust Cash Flow

Knorr-Bremse AG, recognized globally for its braking systems and as a top-tier supplier of vital safety systems for rail and commercial vehicles, disclosed its robust financial performance for the initial nine months and third quarter of 2023.

Why It Matters

Knorr-Bremse’s impressive growth trajectory is a testament to its industry strength and adaptability. Positive financial results not only boost shareholder confidence but also place the company in an advantageous position within the market. This positions Knorr-Bremse as a reliable and resilient player in the transportation and safety sector.

Knorr-Bremse Reports Profit Surge, Robust Cash Flow

Key Points

  • Order Intake Growth: The company reported an order intake of €6.2 billion, showcasing its ability to consistently attract business and highlighting a growth trend from the previous year.
  • Record Order Book: The order book, which is indicative of future revenue, has peaked at a new high of about €7.2 billion.
  • Revenue Upswing: There’s been an outstanding 12.7% growth in revenue, bringing the total to approximately €5.9 billion, reflecting strong sales across divisions.
  • BOOST 2026 Strategy: The BOOST 2026 program, aimed at streamlining operations and maximizing profits, is already showing promising results. The Q3 operating EBIT margin advanced to 11.5%.
  • Cash Flow Surge: A remarkable jump was noted in the Q3 free cash flow, reaching €230 million. This was a significant enhancement from Q3/22’s €38 million, accompanied by a cash conversion rate of 168%.
  • 2023 Guidance Affirmed: In an optimistic move, the Group has reconfirmed its projections for 2023, signaling confidence in continued growth.

Bottom Line

The financial growth reflected in Knorr-Bremse’s order intakes and revenue underscores the company’s capacity to meet market demands effectively. This is a combination of the firm’s strategic initiatives, such as the BOOST 2026 program, and its adeptness at cost management. With the company’s anticipation of a stable economic environment and no further pandemic-induced disruptions, they maintain a positive outlook for the fiscal year 2023. This continued optimism and growth trajectory solidify Knorr-Bremse’s standing as a dominant force in its industry.

Source

The Brake Report
The Brake Report

The BRAKE Report is an online media platform dedicated to the automotive and commercial vehicle brake segments. Our mission is to provide the global brake community with the latest news & headlines from around the industry.