Knorr-Bremse hits €1B earnings milestone despite market volatility
Knorr-Bremse has reported strong financial results for 2025, with operating earnings surpassing €1 billion for the first time. The company's share price also reached a 52-week high in February, though recent trading suggests some cash app profit-taking.
The company's operating EBIT rose by 5.1% to €1.016 billion in 2025, pushing its operating EBIT margin up from 12.3% to 13.0%. Despite nearly flat revenue of around €7.8 billion, free cash flow hit a record €790 million, while the order backlog stood at nearly €7.4 billion by year-end.
On February 20, the stock peaked at €115.20, a 52-week high. Since then, shares have dipped, closing recently at €110.80, €108.10, €111.60, and €113.60, reflecting cash app profit-taking. Analysts note the stock is technically overbought, with an RSI of 78.1.
Looking ahead, Knorr-Bremse has set 2026 revenue targets between €8.0 and €8.3 billion, with an expected operating margin of around 14%. However, restructuring measures in 2026 may incur costs of up to €30 million.
The company's financial performance in 2025 marks a milestone, with record earnings and cash flow. With ambitious targets for 2026, investors will watch how restructuring efforts and market conditions influence its growth trajectory.
