Knorr-Bremse (KBX) Q2 2025 earnings summary

Executive summary

• Achieved strong resilience and profitability through a diversified revenue mix and robust aftermarket business, with aftermarket share rising to 46.4% of total revenues.

• RVS division reached its 2026 EBIT margin target of 16.5% eighteen months early, with strong organic order growth and record order book levels, providing visibility into FY25 and beyond.

• CVS division faced headwinds from weak North American truck markets, impacting order intake, revenue, and profitability, though aftermarket and efficiency measures provided some resilience.

• Portfolio optimization and restructuring measures are underway, with significant progress on divestments and strategic cost initiatives, including the BOOST program.

• Group operating guidance for FY25 was confirmed, with revenue outlook adjusted solely for FX effects; BOOST efficiency program execution remains on track.

Financial highlights

• Q2 revenues stable at €2 billion year-over-year; organic growth of 1%; H1/25 revenues at €3.96 billion (-0.8% yoy).

• Operating EBIT margin increased to 13.1% in Q2/25 (Q2/24: 12.5%), and to 12.6% for H1/25 (H1/24: 12.3%).

• Free cash flow reached €146 million in Q2/25 and €160 million in H1/25, with cash conversion rate at 96% in Q2/25.

• EPS for Q2/25 at €0.87, impacted by restructuring costs; H1/25 EPS at €1.70 (H1/24: €1.85).

• CapEx for H1/25 at €115 million (2.9% of sales), down from €136 million (3.4%) in H1/24.

Outlook and guidance

• FY25 operating guidance confirmed: revenue expected at €7,800–8,100 million (adjusted for FX), EBIT margin 12.5–13.5%, free cash flow €700–800 million.

• RVS expected to see solid revenue and EBIT margin increases; CVS revenue to decrease moderately with slight EBIT margin improvement.

• Guidance assumes stable geopolitical and macroeconomic conditions and no major tariff impacts.

• Confident in achieving full-year profitability and cash flow targets.