Rail Success Continues for Knorr-Bremse, Yet Struggles Persist in Truck Division - Railways Soar, Trucks Plummet: Knorr-Bremse's Fortunes
Knorr-Bremse Weathers Economic Downturn, Reports Growth in Rail Brakes Division
Munich-based Knorr-Bremse, a leading manufacturer of brakes for rail, truck, and trains, has announced a substantial increase in order intake for its rail brakes division. The order intake increased by 18 percent, marking a significant milestone for the company.
Despite a general downturn affecting the truck brakes business area, Knorr-Bremse has managed to maintain its success. The company reported a slight decrease in sales from €3.99 billion euros in the first half of 2024 to €3.96 billion euros in the first half of 2025. However, this decrease is marginal compared to the significant challenges faced by many other German industrial companies in 2025.
The economic downturn in Germany was marked by a prolonged recession, high energy costs, subdued global demand, and a strong euro that hurt exporters' profit margins, particularly in automotive and machinery sectors. The construction industry also declined due to high material costs and weak demand. Major German automakers suffered heavy job losses and stock underperformance.
However, Knorr-Bremse's focus on braking systems for rail and trucks—a critical infrastructure and commercial transport sector—likely insulated it from some of these headwinds. Rail transport and heavy vehicle braking remain essential regardless of macroeconomic slowdown, benefiting from ongoing demand for logistics and freight mobility.
The company’s strong engineering niche and diversification in global markets would have helped buffer against currency and regional demand shocks that hit other sectors. Knorr-Bremse's product mix, serving both rail infrastructure (which typically enjoys government or long-term contract support) and truck brakes (linked to logistics and goods transport), may have created a more stable revenue base in 2025 despite the general downturn.
Knorr-Bremse reported its financial results for the period from early January to the end of June in 2025. The business with rail brakes at Knorr-Bremse experienced a turnover increase of almost ten percent, amounting to around €2.2 billion euros. The net profit for Knorr-Bremse decreased from €313 million euros in the first half of 2024 to €294 million euros in the first half of 2025.
CEO of Knorr-Bremse, Marc Llistosella, leads the company's specialization in the production of brakes for various transportation industries. Despite the significant decrease in the truck brakes business area, Knorr-Bremse continues to operate successfully, demonstrating resilience amid broader economic weaknesses.
In summary, Knorr-Bremse avoided major slumps due to its strategic focus on rail and truck brakes in essential transportation segments with sustained demand, less exposure to volatility affecting automotive and machinery sectors, potential stable government or institutional infrastructure contracts cushioning revenue, strong engineering and diversified market positioning helping mitigate currency and demand shocks common to other German exporters in 2025.
- In response to the economic downturn, Knorr-Bremse, a leading manufacturer of brakes for rail, truck, and trains, has decided to invest more in vocational training for its employees, as part of its community policy, to enhance their skills in the production of rail brakes, ensuring the company's continued growth in this division.
- Meanwhile, recognizing the stability of the rail and truck brakes industries during the economic downturn, Knorr-Bremse has been actively exploring opportunities for expansion in these sectors, possibly through strategic partnerships with industries and finance institutions, to secure future growth and ensure steady business revenue.
