Knorr-Bremse: Feedback from the DB European Champions conference with the CFO

Research evidence excerpt

Knorr-Bremse: Feedback from the DB European Champions conference with the CFO

Deutsche Bank

Research

Rating Company Date

Buy Knorr-Bremse 28 May 2026

Company Update

Europe

Germany

Reuters Bloomberg Exchange Ticker Price at 27 May 2026 (EUR) 102.70

KBX.DE KBX GR GER KBX

Price Target (EUR) 115.00

Capital Goods

52-week range (EUR) 115.40 - 78.20

Engineering

Feedback from the DB European

Valuation & Risks Champions conference with the CFO

Gael de-Bray, CFA

Frank Weber, the CFO of Knorr-Bremse, attended the DB European Champions

Research Analyst

conference in Frankfurt, conveying strong confidence in the company's strategic +33-1-4495-6562

direction and its ability to drive future growth and margin improvement. He

reaffirmed all elements of the FY26 guidance and will communicate new growth Nabil Najeeb

initiatives and mid-term ambitions in July.

+44-20-754-17410

John Kim

What to expect from the strategic update in July?

Knorr-Bremse will communicate new mid-term targets with the Q2 results on July

+44-20-754-18699

30, including organic growth and margin objectives for the 2 divisions. We

anticipate a new margin target of 16% for 2029 or 2030 (+2pts versus its 2026 Seetharaman Ramakrishna

margin guidance). Management estimates that the Rail division will be able to Research Associate

regain its former strength, which would imply medium-term EBIT margins of at

least 19%. For the Truck division, management will likely present 3 scenarios

Price/price relative

contingent on the strength of the cyclical upturn, with a target margin of 12% in a

weak to flat market (which is the assumption for 2026), 14% in a full recovery mode, 150

and 13% in-between. The group indicated that typical operating leverage of 25-30% 100

for Rail and 20-25% for Trucks.