Knorr-Bremse Q1 EBIT beats estimates as truck unit boosts margin
on Thursday posted its highest first-quarter operating earnings margin in five years in the January-to-March 2026 period, as the German braking systems maker reported operating earnings ahead of analyst consensus despite revenues falling short.
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The company recorded an operating EBIT of €261 million in the first quarter of 2026, 1% ahead of consensus of €258 million.
The operating EBIT margin reached 13.5%, 140 basis points above the prior-year quarter and approximately 50 basis points ahead of consensus of 13%.
Revenues came in at €1.94 billion, 3% below consensus of €1.99 billion and down 1.1% from €1.96 billion in the first quarter of 2025. The company said the revenue decline was due exclusively to currency factors, with organic revenues rising 2.1%.
Order intake stood at €2.23 billion, 1% ahead of consensus of €2.20 billion, though below the €2.38 billion recorded in the first quarter of 2025. The order book rose 5.0% to €7.81 billion as of March 31, from €7.44 billion a year earlier.
Jefferies said in its note that "Trucks drove the beat," pointing to the Commercial Vehicle Systems division, which reported operating EBIT of €101 million, 7% ahead of consensus of €95 million.
The division’s operating EBIT margin reached 11.5%, 200 basis points above the prior-year quarter and approximately 75 basis points ahead of consensus of 10.8%.
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Division revenues of €878 million were in line with consensus of €880 million, with organic revenue growth of 3.6%.
The Rail Vehicle Systems division reported operating EBIT of €175 million, 3% below consensus of €180 million. Its operating EBIT margin of 16.5% was 90 basis points above the prior-year quarter.
Division revenues of €1.06 billion were 5% below consensus of €1.11 billion, with organic growth of approximately 1%. The RVS order book rose 7.3% to a record €5.93 billion.
Free cash flow more than doubled to €31.6 million from €14.8 million in the first quarter of 2025. Return on capital employed improved to 22% from 19.5%.
Knorr-Bremse confirmed its full-year 2026 guidance, targeting revenues of between €8.00 billion and €8.30 billion, an operating EBIT margin of around 14%, and free cash flow of between €750 million and €850 million.
The company said its guidance assumes exchange rates remain essentially stable at February 2026 levels and that the situation in the Middle East does not escalate, particularly with regard to supply chain disruptions. Jefferies noted the guidance implies "no larger impact by tariffs."
A disposal of the company’s HVAC business is "still expected," Jefferies said, without providing a timeline.
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on Thursday posted its highest first-quarter operating earnings margin in five years in the January-to-March 2026 period, as the German braking systems maker reported operating earnings ahead of analyst consensus despite revenues falling short.
Access faster breaking news and analyst reactions with InvestingPro - up to 50% off
The company recorded an operating EBIT of €261 million in the first quarter of 2026, 1% ahead of consensus of €258 million.
The operating EBIT margin reached 13.5%, 140 basis points above the prior-year quarter and approximately 50 basis points ahead of consensus of 13%.
Revenues came in at €1.94 billion, 3% below consensus of €1.99 billion and down 1.1% from €1.96 billion in the first quarter of 2025. The company said the revenue decline was due exclusively to currency factors, with organic revenues rising 2.1%.
Order intake stood at €2.23 billion, 1% ahead of consensus of €2.20 billion, though below the €2.38 billion recorded in the first quarter of 2025. The order book rose 5.0% to €7.81 billion as of March 31, from €7.44 billion a year earlier.
Jefferies said in its note that "Trucks drove the beat," pointing to the Commercial Vehicle Systems division, which reported operating EBIT of €101 million, 7% ahead of consensus of €95 million.
The division’s operating EBIT margin reached 11.5%, 200 basis points above the prior-year quarter and approximately 75 basis points ahead of consensus of 10.8%.
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Division revenues of €878 million were in line with consensus of €880 million, with organic revenue growth of 3.6%.
The Rail Vehicle Systems division reported operating EBIT of €175 million, 3% below consensus of €180 million. Its operating EBIT margin of 16.5% was 90 basis points above the prior-year quarter.
Division revenues of €1.06 billion were 5% below consensus of €1.11 billion, with organic growth of approximately 1%. The RVS order book rose 7.3% to a record €5.93 billion.
Free cash flow more than doubled to €31.6 million from €14.8 million in the first quarter of 2025. Return on capital employed improved to 22% from 19.5%.
Knorr-Bremse confirmed its full-year 2026 guidance, targeting revenues of between €8.00 billion and €8.30 billion, an operating EBIT margin of around 14%, and free cash flow of between €750 million and €850 million.
The company said its guidance assumes exchange rates remain essentially stable at February 2026 levels and that the situation in the Middle East does not escalate, particularly with regard to supply chain disruptions. Jefferies noted the guidance implies "no larger impact by tariffs."
A disposal of the company’s HVAC business is "still expected," Jefferies said, without providing a timeline.
See the trade on KBX, but can't pull the trigger?
Most traders can read a chart. The hard part is the moment: entry window open, pattern forming, and you're still waiting for more confirmation. That's the conviction gap — and our chart analysis closes it. Unlike other AIs that just read data, our Vision AI literally "sees" your charts and hands you a complete trading plan: entry, stop-loss, and profit target in under 60 seconds. Know exactly what to do next, every time.
