Knorr-Bremse (KBX) investor relations material

Executive summary

• Achieved strong FY2025 results, meeting or exceeding all key financial targets despite challenging macroeconomic and geopolitical conditions.

• BOOST strategy execution improved efficiency, cost base, and drove margin-accretive growth, with portfolio optimization through divestments and acquisitions.

• Rail division (RVS) delivered strong profitable growth, reaching midterm margin targets early and representing 55% of group revenue; truck division (CVS) showed resilience and effective cost management.

• High order intake (€8.4 billion) and order book (€7.4 billion) provide solid future visibility.

• Record free cash flow of €790 million, reflecting strong operational execution and cost discipline.

Financial highlights

• FY2025 revenues reached €7.82 billion, with organic growth driven by Europe and APAC; North America declined.

• Group operating EBIT margin increased by 70 bps to 13.0%; operating EBIT exceeded €1 billion.

• Free cash flow hit a record €790 million, with a cash conversion rate of 131%.

• Equity ratio improved to 36%; net debt reduced by 31% to €627 million; net debt/EBITDA at 0.49x.

• ROCE increased by 200 bps to 23.4%; CapEx at €319 million (4.1% of revenues), down YoY.

Outlook and guidance

• FY2026 guidance: revenues €8.0–8.3 billion, EBIT margin ~14%, free cash flow €750–850 million.

• RVS operating margin expected just below 17.5% for 2026; CVS margin targeted to improve toward 12%.

• Organic revenue growth for CVS in low- to mid-single digits; gradual recovery expected in North America truck market.

• Up to €30 million in restructuring costs may be incurred to optimize global production footprint.

• New midterm targets to be communicated with Q2 2026 results.