Knorr-Bremse Reports Robust Growth

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Knorr-Bremse AG reported strong performance for the first half of 2024, showcasing significant improvements in key financial metrics driven by the BOOST 2026 strategy program. The company achieved notable increases in order intake, revenues, and operating EBIT, while successfully executing revenue growth and cost optimization measures.

Key Highlights:

• Order Intake: €4.2 billion
• Order Book: €6.8 billion
• Revenues: Approximately €4 billion, up 2%
• Operating EBIT: €490 million, up 18%
• Operating EBIT Margin: Improved from 10.6% to 12.3%
• Executive Board Continuity: Bernd Spies’s contract renewed for five years
• Full-Year Guidance: Increased for 2024

Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG, stated, “We are proud of the outstanding business performance in the first half of 2024, with many of our key financials seeing significant gains. This positive development is also the result of our extensive BOOST 2026 suite of measures which we launched a year ago. Our portfolio optimization in particular is progressing well and making a key contribution to our increased profitability. Following Kiepe Electric and Safety Direct, we just sold GT Emissions Systems in the UK and reached the next milestone. Simultaneously, we have already started the process to sell a fourth business unit.”

Frank Weber, Chief Financial Officer of Knorr-Bremse AG, added, “Our revenue-boosting and efficiency measures are proving to be extremely effective. The significant and, most importantly, continuous improvement of our margins is the best evidence of this. Accordingly, free cash flow has improved significantly as well. We are working hard to maintain this positive trend.”

First Half 2024 Financials:

• Order Intake: €4,239 million, stable compared to the previous year due to high demand in the Rail Vehicle Systems division despite a slowdown in the truck market.
• Order Book: Increased to €6,848 million, excluding Kiepe Electric.
• Revenues: Grew 2% to €3,987 million.
• Operating EBIT: Rose by 18% to €490 million, with the operating EBIT margin improving from 10.6% to 12.3%.
• Free Cash Flow: Increased significantly to €64 million from a deficit of €165 million in the previous year.

Rail Vehicle Systems Division (RVS):

• Order Intake: Rose to €2,202 million, driven by strong demand in the global rail market.
• Order Book: Increased to €4,881 million.
• Revenue: Up 9.2% to €1,981 million.
• Operating EBIT: Improved by 20% to €304 million.
• Operating EBIT Margin: Increased to 15.3%.

Commercial Vehicle Systems Division (CVS):

• Order Intake: €2,038 million, slightly down from the previous year.
• Order Book: Reached €1,969 million.
• Revenues: €2,007 million, slightly down from the previous year.
• Operating EBIT: Increased by 15.5% to €223 million.
• Operating EBIT Margin: Improved to 11.1%.

Executive Board Continuity: The Supervisory Board of Knorr-Bremse AG renewed Bernd Spies’s contract for five years, ensuring continued leadership in the Commercial Vehicle Systems division.

Increased Guidance: Knorr-Bremse has raised its guidance for the 2024 fiscal year, expecting revenues between €7,700 million and €8,000 million, an operating EBIT margin between 11.5% and 13.0%, and free cash flow between €550 million and €650 million. This guidance excludes the pending acquisition of Alstom’s rail signaling technology business in North America.

For detailed financial information, visit the Knorr-Bremse AG website.