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Investing.com -- Knorr-Bremse reported third-quarter results broadly in line with expectations, as solid performance in its rail business offset continued weakness in trucks.
Revenue fell 3% year on year to €1.88 billion, missing the €1.94 billion consensus estimate cited by Jefferies.
Orders reached €1.96 billion, matching estimates, with the rail vehicle systems (RVS) division up 6% organically and the commercial vehicle systems (CVS) segment up 4%. Rail orders were driven by strong demand in Europe and U.S. signalling, while trucks lagged amid softer North American activity.
Operating EBIT came in at €251 million, in line with forecasts, representing a margin of 13.3%, about 30 basis points ahead of consensus.
Rail margins improved to 17.0%, helped by mix effects and operational leverage, while truck margins stood at 10.6%, supported by Knorr-Bremse’s BOOST efficiency program and a solid aftermarket contribution.
Free cash flow reached €159 million, beating the expected €105 million, though down from €184 million a year earlier. Return on capital employed improved to 21%.
Jefferies analysts led by Lucas Ferhani described the quarter as “mixed as expected.”
"Trucks recovery delayed to 2026 and remains the key, Rail execution still strong," they added.
Knorr-Bremse reaffirmed its 2025 guidance, which Jefferies said already sits “just below the midpoint of consensus.”