Knorr-Bremse at German Select Conference Reaffirms 2026 Targets, Eyes Rail HVAC Divestment

Knorr-Bremse (ETR:KBX) outlined its concern mix, strategical priorities and full-year guidance during a presumption astatine the German Select Conference led by Katharina Kosate, Senior Manager of Investor Relations. The institution is the planetary marketplace person successful braking systems and different safety-critical systems for obstruction vehicles and commercialized vehicles, Kosate said, emphasizing that Knorr-Bremse typically delivers afloat systems that harvester hardware, bundle and brake power alternatively than “only” brakes.

Kosate described Knorr-Bremse arsenic operating a “balanced portfolio” crossed 2 divisions: Rail Vehicle Systems (RVS) contributing astir 55% of revenue, and Commercial Vehicle Systems (CVS) contributing astir 45%. Rail is structurally much profitable, with an operating EBIT borderline of “more than 16.5%,” compared with astir 10.5% successful the motortruck business, which Kosate said is “quite a bully figure” fixed the existent cycle.

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Geographically, she said the institution is not overly babelike connected immoderate azygous region. Europe is its largest market, with “big operations” successful North America and Asia arsenic well. Kosate besides highlighted the group’s aftermarket vulnerability arsenic a cardinal strength, accounting for astir 46% of revenue.

For 2025, Kosate said Knorr-Bremse generated gross of astir EUR 7.8 cardinal and operating EBIT of astir EUR 1 billion, corresponding to an operating EBIT borderline of astir 13%.

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A cardinal taxable of the presumption was resilience, which Kosate tied to differing economical cycles crossed the 2 divisions and to the company’s installed base. She said Knorr-Bremse products are successful “more than each 2nd bid worldwide,” supporting the aftermarket business.

Kosate pointed to homologation requirements successful obstruction arsenic a large obstruction to switching suppliers, supporting precocious aftermarket share, peculiarly successful rail. She described the aftermarket arsenic “annuity-like successful nature,” supported by agelong merchandise beingness cycles, with trains typically lasting 40 years oregon much and trucks astir 10 years for the company’s applicable work window.

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She cited aftermarket shares of 56% successful obstruction and 34% successful commercialized vehicles, adding that the aftermarket provides “strong margins, currency travel stability, and a important aboriginal potential.” She besides said integer and connectivity-based services tin further heighten that maturation potential.

Kosate said the company’s BOOST program, launched successful 2023, is designed to thrust borderline enlargement done outgo optimization and footprint improvements, portion besides expanding into maturation areas. She described 2 components: