Knorr-Bremse AG (DE:KBX)
XETRA:KBX
Top Page
Knorr-Bremse AG
(XETRA:KBX)
Select Model
Select Model
Rating:60Neutral
Price Target:
€101.00
▼(-2.04% Downside)
Action:ReiteratedDate:03/23/26
The score is driven primarily by solid financial quality—especially strong recent free cash flow—plus supportive 2026 guidance and improving profitability from the earnings call. These positives are tempered by weak technical momentum (below key moving averages with negative MACD) and a relatively high P/E with only a modest dividend yield.
Positive Factors
Strong free cash flow generation
Consistently strong cash conversion and a record FCF position management to fund capex, deleveraging, and shareholder returns without relying on external financing. Over 2024–25 operating cash remained >€1bn, giving durable liquidity to navigate cyclicality and invest in strategic initiatives.
Negative Factors
Recent revenue softness
A roughly 10% revenue decline in 2025 signals demand and timing pressures that can persist across quarters. Lower top-line weakens fixed-cost absorption, increases reliance on aftermarket and margin recovery, and creates execution risk if end-market cycles (trains, trucks) remain muted for several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistently strong cash conversion and a record FCF position management to fund capex, deleveraging, and shareholder returns without relying on external financing. Over 2024–25 operating cash remained >€1bn, giving durable liquidity to navigate cyclicality and invest in strategic initiatives.
Read all positive factors
Knorr-Bremse AG (KBX) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€17.12B
Dividend Yield1.85%
Average Volume (3M)156.00K
Price to Earnings (P/E)30.7
Beta (1Y)1.14
Revenue Growth-1.77%
EPS Growth-28.68%
CountryDE
Employees29,051
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.74
Shares Outstanding161,200,000
10 Day Avg. Volume150,031
30 Day Avg. Volume155,999
Financial Highlights & Ratios
PEG Ratio1.58
Price to Book (P/B)5.29
Price to Sales (P/S)2.10
P/FCF Ratio19.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€111.41Price Target Upside8.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)4.56
Revenue Forecast (FY)€8.25B
Knorr-Bremse AG Business Overview & Revenue Model
Company Description
Knorr-Bremse Aktiengesellschaft develops, produces, markets, and services braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. It offers br...
How the Company Makes Money
Knorr-Bremse makes money mainly by selling OEM (original equipment) systems and components to vehicle manufacturers and by generating recurring revenue from aftermarket parts and services over the life of vehicles and rail fleets.
Key revenue str...
Knorr-Bremse AG Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call highlights substantial operational and financial progress: record free cash flow, improved margins (group margin +70 bps to 13%), rail hitting midterm margin a year early, stronger balance sheet (net debt down 31%), orderbook/backlog growth, and clear 2026 guidance. These positives are balanced by continued truck-market weakness in North America, some regional and timing softness in RVS orders (Q4 order intake -10% and book-to-bill <1 in the quarter), a pending HVAC divestment and FX/M&A headwinds. Management communicated a cautious but constructive outlook with an emphasis on efficiency (BOOST Phase 2) and targeted greenfield growth, suggesting confidence in execution while acknowledging near-term cyclical and regional risks.Positive Updates
Strong Full-Year Revenues and Organic Growth
Total revenues of almost EUR 8.0 billion for FY2025 with slight organic growth (group level). Q4 revenues ~EUR 2.0 billion with organic growth of >6%.
Negative Updates
Truck OEM Market Weakness in North America
CVS experienced continued headwinds in North America: full-year regional declines (OE business down significantly in North America) and North America aftermarket down ~10% in Q4. CVS full-year revenues decreased nominally by 4% to EUR 881 million (though organic growth >5%). Management expects only a gradual recovery rather than a sharp rebound.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Revenues and Organic Growth
Total revenues of almost EUR 8.0 billion for FY2025 with slight organic growth (group level). Q4 revenues ~EUR 2.0 billion with organic growth of >6%.
Read all positive updates
Company Guidance
The company guided to FY‑2026 revenues of EUR 8.0–8.3 bn, a group operating EBIT margin of 14% and free cash flow of EUR 750–850 m, while reiterating a CapEx envelope of c.4–5% of revenues and a seasonal FCF profile similar to 2025; Rail (RVS) is expected to sustain a book‑to‑bill around 1 (quarterly order intake c. EUR 1.0–1.2 bn) with FY operating margin slightly below 17.5% (Q4’25 was 17.0% and Q2–Q4 margins are expected to be above Q1), and Truck (CVS) is guided to low‑ to mid‑single‑digit organic revenue growth with operating EBIT margin improving toward ~12% through the year; balance sheet flexibility remains strong (net debt/EBITDA ~0.5x at year‑end ’25) and management said it would consider leverage up to ~1x (or higher for clearly accretive M&A), with updated mid‑term targets to be published with Q2 results on 30 July.Knorr-Bremse AG Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.82B | 7.88B | 7.93B | 7.15B | 6.71B |
| Gross Profit | 1.69B | 4.24B | 4.02B | 3.52B | 3.45B |
| EBITDA | 1.26B | 1.11B | 1.21B | 1.05B | 1.21B |
| Net Income | 534.00M | 445.00M | 552.53M | 489.28M | 621.31M |
Balance Sheet | |||||
| Total Assets | 9.21B | 9.63B | 8.25B | 8.01B | 7.20B |
| Cash, Cash Equivalents and Short-Term Investments | 1.74B | 2.26B | 1.29B | 1.45B | 1.44B |
| Total Debt | 3.08B | 4.03B | 2.76B | 2.68B | 2.15B |
| Total Liabilities | 6.03B | 6.50B | 5.35B | 5.32B | 4.77B |
| Stockholders Equity | 3.10B | 3.04B | 2.84B | 2.56B | 2.33B |
Cash Flow | |||||
| Free Cash Flow | 831.00M | 696.00M | 539.43M | 189.41M | 579.96M |
| Operating Cash Flow | 1.07B | 1.04B | 914.59M | 541.55M | 975.49M |
| Investing Cash Flow | -380.00M | -750.30M | -410.64M | -505.00M | -534.37M |
| Financing Cash Flow | -1.13B | 629.10M | -397.67M | -160.81M | -1.42B |
Knorr-Bremse AG Technical Analysis
Positive
103.10
Price Trends
103.80
Negative
98.80
Positive
91.51
Positive
Market Momentum
0.04
Negative
52.77
Neutral
75.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KBX, the sentiment is Positive. The current price of 103.1 is above the 20-day moving average (MA) of 99.64, below the 50-day MA of 103.80, and above the 200-day MA of 91.51, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 75.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:KBX.
Knorr-Bremse AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | €813.47M | 13.62 | 10.35% | 5.70% | -12.01% | -28.10% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | €17.12B | 30.74 | 17.59% | 1.85% | -1.77% | -28.68% | |
55 Neutral | €361.15M | -44.43 | -18.51% | 3.51% | -6.21% | -995.53% | |
54 Neutral | €8.22B | 110.15 | 5.24% | 1.17% | <0.01% | -50.97% | |
50 Neutral | €13.03B | -82.38 | -2.42% | 2.88% | -38.10% | -75.32% | |
45 Neutral | €7.41B | -18.63 | -13.00% | 3.15% | 45.16% | -790.24% |
* Consumer Cyclical Sector Average
DE:KBX
Knorr-Bremse AG
103.10
23.48
29.49%
DE:ZIL2
ElringKlinger
5.54
0.97
21.23%
DE:HLE
Hella KGaA Hueck & Co
72.70
-15.42
-17.50%
DE:SFQ
SAF-HOLLAND SE
17.88
3.36
23.17%
DE:SHA0
Schaeffler
7.67
4.29
126.86%
DE:CON
Continental Aktiengesellschaft
63.64
16.39
34.69%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.