Finland · Delayed Price · Currency is EUR KONE Oyj Earnings Call Transcripts
Fiscal Year 2025
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Order growth and profitability improved in 2025, led by modernization and services, with digital transformation and sustainability targets exceeded. 2026 guidance anticipates 2%-6% sales growth and a 12.3%-13% EBIT margin, despite ongoing challenges in China and raw material headwinds.
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Q3 delivered strong order and sales growth, especially in modernization and service, with robust cash flow and margin expansion. China remains a challenge, but exposure is decreasing, and digitalization plus performance initiatives are supporting future growth.
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Margin expansion continued for the 12th straight quarter, with strong growth in service and modernization, especially outside China. Sales rose 4.9% year-over-year, and adjusted EBIT margin improved, while China remains a challenging market.
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Strong Q1 2025 driven by nearly 20% growth in modernization, margin expansion, and robust service performance outside China. Guidance for 2025 is 1%-6% sales growth and 11.8%-12.4% EBIT margin, with China and FX as key headwinds.
Fiscal Year 2024
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Strong service and modernization growth offset China’s new building weakness, driving higher sales, improved margins, and robust cash flow. 2025 guidance calls for slight sales growth and continued margin improvement, with China remaining a key risk.
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Q3 saw strong growth in service and modernization, offset by a 20% sales and profit decline in China. 2024 guidance was narrowed due to China headwinds, but margin and cash flow improved, with performance initiatives underway to drive future profitability.
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The strategy for 2025–2030 centers on accelerating growth in services and modernization, leveraging digitalization, sustainability, and operational efficiency. New midterm targets are set for mid-single-digit sales growth and 13–14% EBIT margin by 2027, with strong regional execution and a focus on culture and innovation.
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Service and modernization drove strong growth and profitability, offsetting declines in China’s new building market. Guidance for 2024 was narrowed, with modernization and services expected to remain robust, while China NBS faces continued headwinds.