Knorr-Bremse Sees Higher Profit Margin and Strong Cash Flow

Knorr-Bremse AG, the global market leader for braking systems and a leading supplier of other safety-critical rail and commercial vehicle systems, today published its results for the first nine months and third quarter of 2023.

Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG: “We are fully on course to achieve our goals this year. Both our divisions performed very well in the first nine months of this fiscal year, and we are very satisfied with the demand, too. For us as a global market and technology leader, it shows impressively how much trust our global customers have in our products and solutions. In July, we launched our BOOST 2026 strategy update and now we are proceeding with our portfolio review by precisely analyzing the performance of our existing investments. Simultaneously, we are reducing our costs through targeted measures. We have a clear focus on our top priorities: margin development and cash flow.”

Frank Markus Weber, Chief Financial Officer of Knorr-Bremse AG: “We were able to achieve further pleasing revenue growth in the last three months. At € 1.9 billion, this represents an increase of 8% on the same quarter last year. Our greater profitability stems from the successful implementation of our Profit and Cash Protection Program (PCPP), which is part of BOOST 2026. Operating EBIT improved continuously and rose to € 224 million in the quarter just ended, with an operating EBIT margin of 11.5%. This development was bolstered by cost control measures and successful price negotiations. Thanks to an improved working capital and larger customer payments, we were able to significantly improve free cash flow to € 230 million and raise the cash conversion rate to almost 170 % in the third quarter of 2023.”

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