EL7.AI
StocksMedium•29 October 2026•
3 min read

Knorr-Bremse raises revenue 9% in third quarter to €2.051 billion

Key Facts

1Consolidated revenue rose 9% to €2.051 billion in the third quarter of 2026, compared with €1.883 billion a year earlier.
2Operating EBIT climbed 19.1% to €299 million, and its margin reached 14.6%, compared with 13.3% a year earlier.
3Group orders increased 4.9% to €2.053 billion, and the order book rose 7% to €7.883 billion.
4Free cash flow rose nearly 50% to €238 million, compared with €159 million in the third quarter of 2025.

Knorr-Bremse raised consolidated revenue 9% year on year to €2.051 billion in the third quarter, which ran from July to September 2026, compared with €1.883 billion a year earlier. The company said quarterly profitability reached a five-year high, while operating EBIT was its second-highest quarterly result on record. Operating profit rose 19.1% to €299 million, from €251 million in the year-earlier period. The operating EBIT margin also increased to 14.6% from 13.3%, a gain of 130 basis points. The comparison shows that the company’s description of the quarter as a record refers to profitability, not overall financial performance.

Results varied against Vara Research consensus published on October 13: revenue, operating earnings per share and earnings per share fell short of expectations, while the operating EBIT margin matched consensus. By contrast, truck segment orders exceeded expectations. Group orders totaled €2.053 billion, up 4.9% from €1.956 billion in the third quarter of 2025. The order book stood at €7.883 billion on September 30, up 7% from €7.368 billion a year earlier. These figures show growth in the order backlog alongside mixed performance against market estimates for operating indicators.

The truck segment contributed more than rail to revenue and operating profit growth. Truck revenue rose 12.5% to €938 million, from €833 million a year earlier, and the segment’s operating EBIT climbed 31.9% to €116 million. The company attributed an increase of more than €230 million in truck orders, to €1.018 billion, to a recovery in the North American and European markets. Rail revenue increased 6.1% to €1.114 billion, compared with €1.050 billion, while operating EBIT rose 9.9% to €197 million. The comparison between the two segments shows broader truck growth in the quarter, with rail continuing to contribute to higher revenue and earnings.

Free cash flow improved nearly 50% to €238 million in the third quarter, compared with €159 million a year earlier. The company said growth in rail revenue, efficiency gains, a recovery in the truck market and cost reductions supported the improvement. Chief Financial Officer Frank Weber attributed the stronger financial resilience to the implementation of efficiency measures, disciplined working capital management and solid operating performance. Weber said, "Our excellent operating results in the quarter confirm our expectations for the full year." The company thus links its operating progress and working capital management to its full-year expectations.

Knorr-Bremse kept its 2026 guidance at revenue of between €8.1 billion and €8.3 billion, an operating EBIT margin of between 14% and 14.5%, and free cash flow of between €750 million and €850 million. The company expects both revenue and free cash flow to reach the upper end of their respective ranges. Third-quarter results provide a basis for comparison with the previous period: the company said the 13.3% operating EBIT margin in the third quarter of 2025 accompanied its highest quarterly profitability in 16 quarters. The margin rose to 14.6% in the current quarter, exceeding the upper end of the annual range set by the company. The annual guidance, which the company reaffirmed, remains the next benchmark for assessing its performance in 2026.