Knorr-Bremse Targets Growth After Challenging 2024
After a difficult 2024, Knorr-Bremse aims to return to growth. The Munich-based company plans to increase its revenue to between €8.1 billion and €8.4 billion by 2025. Last year, revenue remained largely unchanged at €7.9 billion, the company announced. According to preliminary figures, profits declined by 17% to €477 million.
"In 2024, we have once again proven that we can handle crises," said CEO Marc Llistosella. The commercial vehicle business is currently "struggling with a difficult market situation worldwide." In contrast, the rail business has increased its earnings to a "historic record level." Accordingly, the revenues of the two approximately equal divisions also developed in opposite directions. The truck business declined by over 8%, while the rail business grew by almost 8%.
"Knorr-Bremse is in a very good operational position," emphasized Llistosella. Shareholders are also expected to benefit from this. For 2024, the company has announced an increase in dividends. Most recently, Knorr-Bremse promised at least a stable payment – after €1.64 per share in the past.
Llistosella himself has also already benefited from the positive development. His contract was prematurely extended by five years at the end of January. However, the number of employees in the group has decreased. At the end of the year, there were 32,549, 770 fewer than a year earlier.
Truck Business Struggles, Rail Business Thrives
The commercial vehicle business, which accounts for around half of Knorr-Bremse’s revenue, was hit hard by the global economic downturn and supply chain disruptions in 2024. The company saw a decline in demand for trucks from both manufacturers and fleet operators. Knorr-Bremse’s revenue in this segment dropped by over 8% to €3.9 billion.
In contrast, the rail business performed exceptionally well in 2024. Knorr-Bremse’s rail products, which include braking systems, doors, and air conditioning, are in high demand due to increasing global urbanization and the need for sustainable transportation. The company’s revenue in the rail segment grew by almost 8% to €4.0 billion, setting a "historic record."
Outlook for 2025 and Beyond
Knorr-Bremse expects the market environment to remain challenging in 2025, but the company is confident in its ability to grow. The company plans to invest heavily in research and development, with a focus on digitalization and sustainable solutions. Knorr-Bremse is also looking to expand its presence in emerging markets, such as China and India.
CEO Marc Llistosella is optimistic about the future. "We are convinced that we will continue to grow profitably in the coming years," he said. "We have a strong track record, a dedicated team, and a clear strategy."
Key Takeaways
- Knorr-Bremse aims to grow revenue to €8.1-€8.4 billion by 2025.
- The truck business faced challenges in 2024, with revenue declining by over 8%.
- The rail business performed well, setting a "historic record" with revenue growth of almost 8%.
- Knorr-Bremse plans to increase dividends in 2024.
- The company is investing in research and development, digitalization, and sustainable solutions.
- Knorr-Bremse is optimistic about the future and expects continued growth in the years to come.
