Knorr-Bremse (KBX) Q4 2024 earnings summary

Executive summary

• Revenues remained stable at €7,883 million, down 0.5% year-over-year, with record order book and strong free cash flow of €730 million, up 32.3% from 2023.

• Rail Vehicle Systems division achieved record revenues of €4,044 million (+7.9%) and operating EBIT margin of 15.6%.

• Commercial Vehicle Systems division faced an 8.1% revenue decline to €3,842 million but improved operating EBIT margin to 10.4%.

• Net income fell 17.2% to €477 million, and EPS decreased to €2.76 from €3.43.

• Dividend proposed at €1.75 per share, a 6.7% increase, with payout ratio at 60%.

Financial highlights

• EBIT rose 4.7% to €911 million; operating EBIT up 8.2% to €966 million.

• Operating EBIT margin improved to 12.3% from 11.3% year-over-year.

• Free cash flow reached a record €730 million (+32.3%), and operating cash flow was €1,042 million (+14%).

• R&D costs increased 4.3% to €568 million, representing 7.2% of sales.

• Total assets rose 16.5% to €9,613 million; equity ratio at 32.5%.

Outlook and guidance

• 2025 revenue expected between €8.1–8.4 billion, operating EBIT margin 12.5–13.5%, and free cash flow €700–800 million.

• Rail Vehicle Systems division projected to see significant revenue and margin growth; Commercial Vehicle Systems to remain stable with margin improvement.

• Dividend payout ratio for 2024 above long-term range to reflect strong operational performance.