Knorr-Bremse (KBX) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong performance with order intake and revenue above €1.9 billion, driven by robust rail growth and resilient commercial vehicles despite challenging truck markets and global economic headwinds.

• The BOOST 2026 efficiency program and structural measures supported margin improvements and cost efficiency across divisions.

• Aftermarket revenue share increased, with rail aftermarket reaching over 52% and commercial vehicles above 30% in key regions.

• The acquisition and integration of KB Signaling in North America and two bond issuances, including a green bond, strengthened the business and liquidity.

• Guidance for 2024 was slightly raised, reflecting confidence in continued growth and margin improvement.

Financial highlights

• Q3 2024 revenues reached €1.91 billion (+0.3% yoy), with order intake at €1.94 billion (+0.2% yoy) and a book-to-bill ratio of 1.02.

• Group operating EBIT margin improved to 12.3% (up 80 bps yoy), and free cash flow for Q3 was €184 million; nine-month free cash flow rose to €248 million.

• Net income for the first nine months was €452.5 million, with EPS for Q3 at €0.81 (+5.2% yoy).

• Order book at €7.06 billion (+4.4% yoy), with RVS order backlog above €5 billion (+9% y/y organically).

• Net financial debt increased to €1,420.7 million as of 30.09.24, reflecting bond placements and higher cash balances.

Outlook and guidance

• 2024 revenue guidance raised to €7.8–8.1 billion, with operating EBIT margin expected at 11.5–13% and free cash flow at €550–650 million.

• Guidance includes ~€100 million revenue from KB Signaling; EBIT margin unchanged due to truck market uncertainties and integration costs.

• For 2025, RVS is expected to see mid-single-digit revenue growth and margin improvement, while CVS revenues are expected to be flat to slightly up.

• Guidance assumes stable exchange rates and no major geopolitical or economic disruptions.