Knorr-Bremse (KBX) Q3 2026 earnings summary

Executive summary

• Q3 operating EBIT rose 19.1% YoY to €299m, with a 14.6% margin—the second-highest quarterly operating EBIT and highest margin in over five years.

• Q3 revenue increased 9.0% to €2,051m, up 5.6% organically; order intake was €2,053m and the order book reached €7,883m.

• BOOST achieved its 2026 target; Growth Beyond is the next strategic phase, with growth a priority over the next three to five years while profitability and capital efficiency remain central.

Financial highlights

• Q3 operating EBIT was €299m versus €251m; reported EBIT was €281m versus €219m, and EPS rose 22.5% to €1.09.

• 9M revenue increased 5.0% to €6,132m; operating EBIT rose 15.5% to €865m and reported EBIT rose to €806m.

• 9M net income was €528m versus €447m; EPS increased to €3.11 from €2.59.

• Free cash flow was €238m in Q3 and €531m for 9M, versus €159m and €319m, respectively, in the prior year.

• 9M order intake was €6,484m; the €7,883m order book was €515m above prior year, supported in part by duagon consolidation.

Outlook and guidance

• FY 2026 guidance: revenue €8,100m–€8,300m, operating EBIT margin 14.0%–14.5%, and FCF €750m–€850m; revenue and FCF are expected at the upper ends of their ranges.

• Rail FY 2026 organic revenue growth is forecast at 3%–4%, with a 17.5% operating EBIT margin; 2027 growth is expected similar to or slightly better than 2026, reaching at least 7% in 2028.

• Truck FY 2026 organic revenue growth is expected around 7%, with a 12% operating EBIT margin; 2027 margin improvement of up to 100 bps is targeted in an “okay-ish” market.

• Outlook into 2027 is positive, supported by rail visibility and expected Truck momentum in North America and Europe; Rail Q4 order intake is expected to partially recover to ~€1.2bn.