Finland · Delayed Price · Currency is EUR KONE Oyj Earnings Call Transcripts
Fiscal Year 2026
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Order growth accelerated nearly 11% year-over-year, led by modernization and strong performance in Asia-Pacific and the Middle East. Adjusted EBIT margin expanded, cash flow improved, and the TKE integration is progressing with robust synergy targets and shareholder support.
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Announced a transformative combination with TKE, targeting EUR 700 million in synergies and robust Q1 growth. The combined entity aims for over EUR 20 billion in sales, enhanced margins, and a strong investment-grade profile, with closing expected in 12-18 months.
Fiscal Year 2025
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Order growth and profitability improved, driven by modernization and service, with digital and sustainability initiatives accelerating. Guidance for 2026 targets 2%-6% sales growth and 12.3%-13% EBIT margin, despite ongoing China and geopolitical risks.
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Q3 delivered strong order and sales growth in service and modernization, with adjusted EBIT margin up 75 bps year-over-year. China remains a headwind, but exposure is decreasing, and cash flow and profitability are improving. Guidance for 2024 is positive, with continued focus on digitalization and cost efficiency.
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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 performance driven by nearly 20% growth in modernization and robust service expansion, offsetting challenges in China’s new building market. Margin and cash flow improved, with guidance for 2025 reflecting continued growth in services and modernization.
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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Revised summary: The 2025–2030 strategy focuses on accelerating growth in services and modernization, leveraging digitalization, sustainability, and operational excellence to achieve mid-single-digit sales growth and a 13–14% EBIT margin by 2027. Regional execution emphasizes modernization, digital adoption, and fit-for-purpose residential solutions.
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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.