Knorr-Bremse (KBX) Q3 2025 earnings summary

Executive summary

• Q3/25 delivered strong order intake (€1.96bn, +5.2% yoy) and a record order book (€7.37bn, +8.2% yoy), with robust profitability driven by the RVS segment and supported by strategic acquisitions such as duagon and KB Signaling.

• RVS segment posted strong organic growth and margin expansion, while CVS achieved margin gains despite a challenging North American truck market.

• The BOOST strategy advanced, including efficiency programs and asset sales, with ongoing focus on service business and customer proximity.

• Confirmed operating guidance for 2025 and expressed confidence in achieving 2026 targets through cost discipline and structural improvements.

• Free cash flow and cash conversion remained strong, supporting a robust balance sheet and ongoing investment.

Financial highlights

• Q3/25 revenues reached €1.88bn (+2.7% yoy), with operating EBIT margin of 13.3%–13.6% (up 100bps yoy), the highest in 16 quarters.

• Free cash flow for Q3/25 was €159m, with a cash conversion rate of 104%.

• 9M/25 revenues totaled €5.84bn (+0.4% yoy), with operating EBIT margin at 12.8% (+50bps yoy).

• EPS for Q3/25 was €0.89 (+9.9% yoy); 9M/25 EPS was €2.59.

• ROCE annualized improved to 21.0% in Q3/25 (+240bps yoy).

Outlook and guidance

• Full-year 2025 revenue expected between €7,800 million and €8,100 million, revised down due to currency effects.

• Operating EBIT margin forecast at 12.5%–13.5%; free cash flow guidance €700–800 million.

• RVS expected to see solid revenue and margin increases; CVS revenue to decrease moderately with stable margins.

• Guidance assumes stable macroeconomic and geopolitical conditions.

• For 2026, targeting 14%+ EBIT margin, emphasizing cost control over market dependency.