Knorr-Bremse AG reported its highest quarterly operating EBIT margin in five and a half years at 14.2%, driven by structural improvements and strong market conditions. The Rail division delivered 5% organic revenue growth and a record order backlog exceeding 5.9 billion euros, while the Truck division achieved an 8% organic revenue increase and a 150 basis point margin improvement to 11.8% despite weak truck production rates. Free cash flow improved significantly to 262 million euros in the second quarter of 2026. The company launched its 'Growth Beyond' strategy with ambitious 2030 targets, including organic revenue of around 10 billion euros and an operating EBIT margin of approximately 16%, and confirmed the sale of its HVAC business is on track. However, Rail order intake fell 12% due to project lumpiness, and foreign exchange headwinds have cost approximately 500 million euros in revenue from 2022 to 2026.
Knorr-Bremse AGRecord EBIT margin, strong free cash flow, and ambitious 2030 targets
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