Knorr-Bremse (KBX) Q1 2026 earnings summary

Executive summary

• Achieved record order book of €7.8 billion and high order intake of €2.23 billion in Q1 2026, reflecting robust demand and the resilience of the business model despite market uncertainties.

• Revenues for Q1 2026 were €1,937 million, down 1.1% year-over-year due to currency effects, but up 2.1% organically, with solid growth in Europe partially offsetting declines in North America and Asia.

• Operating EBIT rose 10.5% to €261 million, with margin improving to 13.5% from 12.1% year-over-year, the highest Q1 margin in five years, driven by efficiency measures and improved profitability in both divisions.

• Free cash flow more than doubled to €32 million, mainly due to higher proceeds from asset sales and improved operational performance.

• Net income increased to €160 million, representing 8.2% of revenues, up from 7.3% in the prior year.

Financial highlights

• Order intake was €2,229 million, down 6.2% year-over-year, but the order book grew 5% to €7,813 million, supported by the duagon acquisition.

• Revenues reached €1,937 million, down 1.1% year-over-year, but up 2.1% organically.

• Operating EBIT margin increased by 140 basis points year-over-year to 13.5%, the highest Q1 in five years.

• Free cash flow was €32 million, up from €15 million in the prior year quarter.

• Capital expenditure rose to €62 million, or 3.2% of revenues.

Outlook and guidance

• Full-year 2026 guidance confirmed: revenues between €8.0–8.3 billion, operating EBIT margin around 14%, and free cash flow between €750–850 million.

• RVS operating margin expected around 17.5% for 2026; CVS operating EBIT margin targeted towards 12%.

• Guidance assumes stable geopolitical and economic conditions, with no major escalation in the Middle East crisis or tariffs.

• Restructuring cost buffer of ~€30 million reserved for 2026.