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Knorr-Bremse AG (KBXN) Q3 2026 Earnings Report

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MX:KBXN Q3 2026 EPS Results

Actual EPS
MXN 22.64
Consensus EPS
MXN 24.51
Beat/Miss
Missed by -MXN 1.87
One Year Ago EPS
MXN 18.48

MX:KBXN Q3 2026 Revenue Results

Actual Revenue
MXN 42.62B
Expected Revenue
MXN 43.60B
Beat/Miss
Missed by -MXN 978.94M
YoY Revenue Growth
+9.03%

Earnings Announcement Details

Quarter
Q3 2026
Date
10/28/2026
Time
During Market Hours
Conference Call
Wednesday, October 28, 2026
MX:KBXN Upcoming Earnings

Knorr-Bremse AG's next earnings date is estimated for February 18, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

No earnings call audio is available for this earnings event.

Q3 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Oct 28, 2026|% Change Since:0.00%|
Earnings Call Sentiment|Positive

The call was strongly positive. Management highlighted the strongest third quarter in five years, substantial profitability and cash-flow improvements, stronger truck demand, record-level Rail backlog and confirmation of the 2026 outlook. The main challenges were weaker Rail order intake, continued freight weakness, a slight truck aftermarket decline, non-linear Rail growth and supply-chain or regulatory uncertainties. These lowlights were acknowledged but generally characterized as timing-related, limited or manageable, while the company emphasized cost control, profitability and improving market conditions.

Company Guidance

For 2026, Knorr-Bremse expects revenue at the upper end of its consensus and also foreseen range, operating profit margin well in the range, and free cash flow at the upper end of that; full-year CapEx should be closer to the lower end of the targeted range of 4% to 5% of revenues. Rail guidance is for current-quarter revenues around EUR 1.2 billion and order intake around EUR 1.2 billion, full-year organic revenue growth in the low to mid-single-digit range, around 3% to 4%, and operating EBIT margin at 17.5%; Rail growth is expected to be similar towards a little bit better in '27, reach 7% at least in '28, and aftermarket shares are expected to remain above 50%. Truck guidance is for current-quarter order intake in the range of EUR 950 million to EUR 1 billion, full-year organic revenue growth mid-to-high single digit, respectively, around 7%, and operating EBIT margin of 12% assuming demand in North America remains strong; for next year, the market should be stronger, with truck margins around about 13% in an okay-ish market and up to 100 basis points of margin improvement targeted.

  • Strongest Third Quarter in Five YearsManagement described Q3 2026 as Knorr-Bremse's strongest third quarter in five years, stating that the company achieved everything promised in 2023. Profitability and operational resilience significantly improved, and BOOST was described as nearing successful completion.
  • BOOST Delivered Major Profitability and Resilience ImprovementsBOOST transformed Knorr-Bremse into a stronger, more profitable and more resilient company. The program reduced the company's breakeven and improved fixed-cost coverage, while the company reached a return on capital employed of 24.2%, up 300 basis points year-over-year.
  • Record-Level Quarterly Profitability and Cash GenerationThe company reported its second-highest quarterly EBIT in history. Operating EBIT margin was 14.6%, the second-highest quarterly level ever and close to the 14.7% record reported in the fourth quarter of 2018. Quarterly free cash flow reached EUR 238 million, with a 129% cash conversion rate, and nine-month free cash flow reached EUR 531 million.
  • Free Cash Flow Outlook Remains at the Upper EndManagement said full-year free cash flow is expected at the upper end of the previously communicated range. Nine-month free cash flow was close to EUR 200 million ahead of last year's level excluding the EUR 34 million positive one-off from reimbursement of previously paid IEEPA tariffs.
  • Disciplined Capital Investment and Working Capital ImprovementThird-quarter CapEx was EUR 48 million, representing 2.3% of revenue. Full-year CapEx is expected to be closer to the lower end of the targeted 4% to 5% of revenue range. Net working capital declined to EUR 1.49 billion, while scope of days improved to 66 days.
  • Growth Beyond Program Begins in 2027Growth Beyond officially starts on January 1, 2027, following the housekeeping and efficiency focus of BOOST. Management said the next priority for the coming three to five years is profitable growth, while profitability and capital efficiency will remain the common basis for future decisions.
  • Rail Order Backlog at a Record LevelRail customers' order books were described as close to record levels, with Knorr-Bremse's Rail order backlog increasing 4%, partly due to foreign exchange, to almost EUR 5.9 billion. Management said the high-quality backlog provides visibility well into 2027 and beyond.
  • Rail Revenue and Margin IncreasedRail revenue increased 6% to EUR 1.11 billion in Q3, supported by all regions, while organic growth was around 2%. Operating EBIT margin increased 70 basis points to 17.7%, the highest quarterly figure since 2021, driven primarily by BOOST efficiency measures and operating leverage.
  • Rail Regional Performance Was Broadly PositiveRail revenue increased 4% in Europe, driven by OE activities, continued strong project execution and favorable market dynamics. North America delivered solid growth, mainly from OE business. APAC revenue grew by more than 10%, supported by strength in both business segments, while China was slightly up due to aftermarket growth.
  • Rail Growth Pipeline Supports 2028 TargetManagement expects Rail growth in 2027 to be similar to or slightly better than 2026, while reaching at least 7% growth in 2028. The expected 2028 acceleration is supported by a strong Rail services pipeline and Growth Beyond initiatives, with aftermarket opportunities expected to materialize faster than new product development.
  • Truck Revenue and Profitability Expanded SignificantlyTruck revenue increased to EUR 938 million in Q3, with both OE and aftermarket contributing to the business's performance, although their individual trends differed. Truck operating EBIT reached EUR 116 million, and the operating EBIT margin rose 100 basis points year-over-year to 12.3%, supported by the structurally improved cost base, stronger market activity and operating leverage.
  • Truck OE Growth Was Broad-BasedTruck OE revenue increased by more than 20%, and OE revenue grew in all three major regions. North American OE revenue was particularly strong, increasing 50% year-over-year.
  • Truck Orders and Backlog StrengthenedTruck order intake exceeded the prior-year level significantly, reaching more than EUR 1 billion with a book-to-bill ratio of 1.09. Order intake increased across all regions, including China, and the truck order backlog rose to more than EUR 2 billion.
  • North American Truck Recovery ContinuedThe North American truck recovery was described as clearly visible throughout the supply chain, with production slots essentially fully booked through year-end. Management expects current-quarter North American truck order intake in the range of EUR 950 million to EUR 1 billion and said the 2027 market should be stronger than 2026.
  • Truck Cost Efficiency Improved MateriallyTruck personnel costs were reduced by approximately 19%, and the business achieved nearly 200 basis points of profit-margin improvement on a quarterly basis. Revenue per truck employee reached EUR 317,000, compared with EUR 220,000 to EUR 240,000 four to five years ago, representing an increase of nearly 50% over roughly four and a half years.
  • Positive Truck Margin OutlookManagement expects the truck operating EBIT margin to be 12% for full year 2026, assuming North American demand remains strong. For 2027, management said operating leverage and continuing cost-efficiency measures could support truck margins of around 13% in an 'okay-ish' market, representing up to 100 basis points of improvement.
  • Technology and Product Position StrengthenedKnorr-Bremse presented digitalization, data management, Rail infrastructure, electromechanical braking and digital freight opportunities at InnoTrans. Its in-house automatic-coupler solution was described as an industry benchmark, and management said the company has the technical solution for electromechanical braking today.
  • Truck Digital Ecosystem and New Products AdvancedThe company said it is expanding its truck business into a highly profitable digital ecosystem and considers itself first and broadly positioned in terms of offerings. Electric power steering has secured a first and second customer, with implementation of the new product expected to progress.
  • Strong Market Position Despite Pricing ActionsKnorr-Bremse said it has increased some pricing while maintaining strong and stable market shares. Management stated that the company remains a technical leader and is well positioned across the three major trade fairs.
  • China Innovation and Supply-Chain OpportunitiesThe company held its first supplier summit in China and is evaluating Chinese technologies not only for cost benefits but also for their fit with Knorr-Bremse's concepts. Management said China is increasingly becoming an innovator in addition to being a manufacturing hub, and that Knorr-Bremse is seeking more suppliers from China and India.
  • 2026 Outlook ConfirmedManagement confirmed its 2026 outlook, including revenue at the upper end of the consensus and previously communicated range, operating profit margin within the expected range, and free cash flow at the upper end of the range.

MX:KBXN Earnings History

MX:KBXN earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 18, 20272026 (Q4)27.54-15.37――
Oct 28, 20262026 (Q3)24.5122.6418.4822.47% (+4.15)
Jul 30, 20262026 (Q2)23.3922.4318.0724.14% (+4.36)
May 07, 20262026 (Q1)20.6419.7317.4513.10% (+2.28)
Feb 19, 20262025 (Q4)18.6315.372.28572.73% (+13.08)
Oct 30, 20252025 (Q3)20.3318.4816.829.88% (+1.66)
Jul 31, 20252025 (Q2)19.4618.0718.69-3.33% (-0.62)
May 08, 20252025 (Q1)19.0517.4519.73-11.58% (-2.28)
Feb 20, 20252024 (Q4)22.182.2824.3-90.60% (-22.02)
Oct 31, 20242024 (Q3)18.8416.8216.412.53% (+0.42)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed