Knorr Bremse AG: Further consolidation, strong operating performance, CEO contract extended by five years

Knorr Bremse AG: Further consolidation, strong operating performance, CEO contract extended by five years

Knorr Bremse AG: Further consolidation, strong operating performance, CEO contract extended by five years

The listed company building of KNORR-BREMSE in Berlin. Photo: Hermann Schmidtendorf
The technology group Knorr-Bremse AG sees good progress in the implementation of the global strategy program BOOST 2026. To strengthen continuity in the Executive Board, the Supervisory Board unanimously extended the contract with CEO Marc Llistosella by five years as of January 1, 2026.

The leading provider of braking systems and other systems for rail and commercial vehicles announced this decision on January 31, 2025 in Munich. The employee representatives also support the appointment, the company said. Marc Llistosella has been CEO of Knorr-Bremse since January 2023. “Marc Llistosella and his management team have tackled the major challenges very quickly and have already implemented many strategically important measures to successfully develop Knorr-Bremse as a global market and technology leader,” said Dr. Reinhard Ploss, Chairman of the Supervisory Board of Knorr-Bremse AG. “Despite the tense global economic situation, our company is once again convincing with its operational strength.” Llistosella explained: “Our priorities are clearly on profitability, sustainable growth and value creation.”

Marc Llistosella, CEO Knorr-Bremse AG. Photo Knorr Bremse

When presenting the results for the first nine months and the third quarter of 2024 on October 31, 2024, the Group had already announced that the BOOST 2026 strategic program was progressing according to plan. The takeover of Alstom’s signaling business in North America had been completed.The Group conceded strong operational development.Demand in the rail sector remains high.The Group’s order intake in the first nine months of 2024 was stable compared to the previous year at 6.2 billion euros.The order backlog remains at a high level at EUR 7.1 billion. Profitability has continued to rise.Operating EBIT is EUR 724.8 million, the operating EBIT margin is 12.3 percent (9M/2023: 10.9%).Free cash flow increases to EUR 248 million compared to EUR 65 million (9M/2023). The unchanged strong operating performance supports the proposal of at least a stable dividend for the 2024 financial year.

First Knorr, now Heramba: Kiepe Electric

Other measures as part of the BOOST program included the write-off of the remaining purchase price claim from the sale of Kiepe Electric: This company was taken over by Berlin-based Heramba GmbH in February 2024. A further step in the portfolio adjustment to increase Knorr-Bremse’s profitability was taken with the sale of R.H. Sheppard Co., Inc. to the US investor Balmoral RHS Acquisition Corp. In addition to the Truck Division’s clear focus on mechatronic steering systems, the US subsidiary Bendix will now concentrate more on its core competencies of braking systems, vehicle dynamics, air and energy management and innovative driver assistance systems.

This was followed by the closing on January 22, 2025 of the sale of the subsidiary GT Emissions Systems in North America to the British private equity fund Rcapital Partners.GT Emissions Systems, headquartered in Peterlee (Great Britain), is a leading provider of exhaust gas control systems for diesel engines in on-highway commercial vehicles and off-highway vehicles.This means that the portfolio optimisation with a clear focus on “strategic fit” and performance has been completed 60 percent ahead of schedule, it said.The entire program has an asset value of 700 million euros.

Reminiscent of secret signs from foreign worlds: Detail of a brake disc from Knorr-Bremse. Photo: Hermann Schmidtendorf

“One World – One KB”: 120 years of Knorr-Bremse, 20 years of Global Care

On January 19, 1905, Georg Knorr founded Knorr-Bremse GmbH in Berlin. This was the beginning of a global success story – the rise to become the world market leader for braking systems for rail and commercial vehicles. Another reason to celebrate is the twentieth anniversary of the non-profit organisation Knorr-Bremse Global Care e.V.The focus of its work is on education and WASH (water, sanitation and hygiene). The commitment is based on the United Nations’ sustainability goals.The organisation’s work has already reached over a million people, it is said.

Hermann Schmidtendorf, Editor-in-Chief

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