Knorr-Bremse (KBX) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 and H1 2026 results, with both Rail (RVS) and Truck (CVS) divisions driving significant revenue and profitability growth year-over-year.

• Launched the "Growth Beyond" strategy, targeting margin-accretive growth, operational excellence, and portfolio expansion through 2030.

• Completion or agreement to sell the HVAC business, finalizing the BOOST program and streamlining the portfolio.

• BOOST transformation program exceeded objectives, delivering over 200bps EBIT margin improvement since 2022.

• Major acquisitions included duagon Group and TRAVIS Road Services, strengthening rail and digital aftermarket businesses.

Financial highlights

• Q2 2026 revenues reached up to €2.2 billion, with organic growth of 6.4% year-over-year; H1 revenues totaled €4.08 billion (+3.1% yoy).

• Operating EBIT margin rose to 14.2% in Q2 and 13.9% for H1, the highest in over five years.

• Free cash flow improved to €262 million in Q2 and €294 million for H1 2026, up nearly 80% year-over-year.

• Order book reached a record €7.9 billion; H1 order intake at €4,431 million.

• EPS for Q2 was €1.08, up over 24% year-over-year; H1 EPS reached €2.03.

Outlook and guidance

• 2026 guidance raised: revenues €8.1–8.3 billion, operating EBIT margin 14.0–14.5%, free cash flow €750–850 million.

• 2030 targets: ~€10 billion organic revenue, ~16% operating EBIT margin, >90% cash conversion, ROCE above 25%.

• Guidance assumes stable FX, geopolitical, and macroeconomic conditions, with attention to Middle East crisis risks.

• RVS full-year operating margin expected at 17.5%; CVS at around 12%.