Group profit rises, but several figures miss consensus
The company's October 28 announcement outlined preliminary results for July through September 2026. Group orders totaled about €2.05 billion, below the €2.16 billion consensus compiled by Vara Research on October 13. Revenue of about €2.05 billion also missed the €2.09 billion forecast, while operating EBIT of about €299 million fell short of the €304 million estimate.
The operating EBIT margin matched expectations at 14.6%. Earnings per share were €1.09, compared with a consensus forecast of €1.17. Free cash flow reached about €238 million, roughly 50% above the €159 million recorded a year earlier.
In corporate news also published on October 28, Knorr-Bremse reported group revenue of €2.051 billion, up 9.0% from €1.883 billion a year earlier, and orders of €2.053 billion, up 4.9% from €1.956 billion. Its order book reached €7.883 billion on September 30, an increase of 7.0% from €7.368 billion a year earlier.
Operating EBIT increased from €251 million to €299 million, while the margin rose from 13.3% to 14.6%, a gain of 130 basis points. Knorr-Bremse described the profit as its second-highest quarterly operating result in more than 120 years and the margin as its highest in over five years.
Rail expects a partial order recovery in the fourth quarter
Rail orders came to about €1.05 billion, against Vara's €1.18 billion consensus. Knorr-Bremse said project timing generally causes the division's orders to fluctuate during the year. It attributed the shortfall mainly to the delayed award of customer orders worth about €80 million, which it expects within the next six months, and to a European project it chose not to pursue aggressively because of return considerations.
The company expects Rail orders to recover partially in the fourth quarter of 2026, reaching about €1.2 billion.
Despite the order shortfall, Rail revenue increased 6.1% to €1.114 billion from €1.050 billion a year earlier. Operating EBIT rose 9.9% to €197 million from €179 million, lifting the division's margin to 17.7% from 17.0%. Its September 30 order book stood at €5.858 billion, up 3.5% from €5.659 billion a year earlier.
Truck orders benefit from market recovery
Truck orders exceeded expectations at about €1.02 billion, compared with Vara's €990 million forecast. The detailed figure was €1.018 billion, up 30.1% from €783 million a year earlier. Knorr-Bremse attributed the increase to recovering markets in North America and Europe.
The division's revenue rose 12.5% to €938 million from €833 million. Operating EBIT increased 31.9% to €116 million from €88 million, and its margin improved to 12.3% from 10.5%. Truck's order book reached €2.028 billion on September 30, up 18.6% from €1.710 billion a year earlier.
Management credits efficiency measures
CEO Marc Llistosella and CFO Frank Weber credited the BOOST program, efficiency measures and disciplined working-capital management for the quarter's profitability. Knorr-Bremse said it is transitioning BOOST into Growth Beyond, a growth initiative launched in July 2026.
The company, listed in Germany's MDAX under ticker KBX and ISIN DE000KBX1006, describes itself as the world market and technology leader in braking systems and a leading supplier of other systems for rail and commercial vehicles. It employs about 30,000 people at more than 100 locations in 30 countries and generated approximately €7.8 billion in revenue in 2025.
Nine-month results and unchanged annual guidance
For January through September 2026, group orders totaled €6.484 billion, up 0.7% year over year, while revenue increased 5.0% to €6.132 billion. Operating EBIT rose 15.5% to €865 million. Free cash flow increased 66.5% to €531 million, and earnings per share reached €3.11, compared with €2.59 a year earlier.
Knorr-Bremse retained its full-year guidance of €8.1 billion to €8.3 billion in revenue, an operating EBIT margin of 14.0% to 14.5%, and free cash flow of €750 million to €850 million. It expects revenue and free cash flow to finish at the upper end of their respective ranges.
The complete quarterly statement, including all financial figures, is scheduled for release on October 29, 2026.
