Knorr-Bremse (KBX) Q4 2024 TU earnings summary

Executive summary

• Achieved record order book above €7 billion and stable revenues of €7.9–7.88 billion in 2024, despite challenging markets.

• Rail Division reached historic highs in revenues and order intake; Truck Division delivered double-digit returns despite market headwinds.

• Free cash flow hit a record €730 million, with significant progress on the BOOST 2026 strategy.

• CEO contract extended for five years, reinforcing leadership stability and strategic continuity.

• Celebrated 120th anniversary, highlighting transformation into a global market leader focused on sustainable growth.

Financial highlights

• FY24 revenues reached €7,883 million, stable year-over-year, with organic growth of 0.7%.

• Group EBIT margin rose by 100 basis points to 12.3%; rail division EBIT margin up 130 basis points to 15.6%.

• Free cash flow hit a record €730 million, with a cash conversion rate of 113%.

• Net debt/EBITDA at 0.7x; equity ratio at 32–35%; liquidity increased to €1.5–2.3 billion.

• ROCE improved to 20.8% (21.2% excluding KB Signaling acquisition); CapEx at €350 million (4.4% of revenues).

Outlook and guidance

• 2025 revenue guidance: €8.1–8.4 billion, EBIT margin 12.5–13.5%, free cash flow €700–800 million.

• Rail division expected to maintain book-to-bill above 1 and operating margin above 16% in 2025.

• Truck division revenues expected to be flat in 2025, with margin recovery to around 11% contingent on H2 market improvement.

• CapEx/revenue ratio to remain at 4–5%; potential restructuring costs up to €50 million.

• Strategic focus on sustainable, profitable growth and further BOOST program implementation.