(AGENPARL) – Fri 18 July 2025 7.30 AM CEST / 18-Jul-2025 / KONE Oyj (HEX:KNEBV)
KONE Corporation, stock exchange release, July 18, 2025 at 8.30 a.m. EEST
Half-year Financial Report of KONE Corporation for January–June 2025
Sales growth and continued margin improvement
April–June 2025
· Orders received declined by 0.5% to EUR 2,316.2 (4–6/2024: 2,327.6) million.
At comparable exchange rates, orders grew by 3.0%.
· Sales grew by 1.8% to EUR 2,850.1 (2,801.0) million. At comparable exchange
rates, sales grew by 4.9%.
· Operating income (EBIT) was EUR 338.0 (334.7) million or 11.9 % (11.9 %) of
sales. The adjusted EBIT was EUR 347.2 (334.7) million or 12.2 % (11.9 %) of
sales.*
· Cash flow from operations (before financing items and taxes) was EUR 364.4
(312.6) million.
January–June 2025
· Orders received grew by 2.9% to EUR 4,694.6 (1–6/2024: 4,563.3) million. At
comparable exchange rates, orders grew by 4.0%.
· Sales grew by 2.9% to EUR 5,522.4 (5,369.3) million. At comparable exchange
rates, sales grew by 3.9%.
· Operating income (EBIT) was EUR 614.7 (597.0) million or 11.1 % (11.1 %) of
sales. The adjusted EBIT was EUR 626.7 (597.0) million or 11.3 % (11.1 %) of
sales.*
· Cash flow from operations (before financing items and taxes) was EUR 851.1
(710.8) million.
Business outlook for 2025 (specified)
KONE expects its sales to grow 2-5% at comparable exchange rates in 2025.
Adjusted EBIT margin is expected to be in the range of 11.8%-12.4%. Assuming
that foreign exchange rates remain at the July 2025 level, the negative impact
of foreign exchange rates on the adjusted EBIT is expected to be approximately
EUR 50 million.
KONE previously expected its sales to grow 1-6% at comparable exchange rates in
2025. The improvement in adjusted EBIT margin was expected to be in the range of
11.8%-12.4%. Assuming that foreign exchange rates remain at the April 2025
level, the negative impact of foreign exchange rates on the adjusted EBIT was
expected to be approximately EUR 50 million.
Key 4–6/2025 4–6/2024 Change 1–6/2025 1–6/2024 Change
1–12/2024
figures
8,758.9
received
Order book MEUR 8,699.4 9,326.6 -6.7 %
9,058.6
11,098.4
1,249.0
income
11.3
income
margin
1,303.0
EBIT*
11.7
EBIT
margin*
1,254.1
before
961.0
1.84
earnings
per share
Cash flow MEUR 364.4 312.6 851.1 710.8
1,589.3
from
operations
(before
financing
items
taxes)
Interest MEUR -300.4 -417.7
-831.2
-bearing
debt
39.8
ratio
33.8
equity
Net MEUR -842.8 -782.8
-827.2
working
capital
(including
financing
items
and taxes)
Gearing % -13.2 -17.6
-28.7
* KONE presents adjusted EBIT as an alternative performance measure to enhance
comparability of business performance between reporting periods. In January–June
2025, items affecting comparability amounted to EUR 12.0 million consisting
mainly of costs related to the separation of the KONE Door Business under its
own legal and operative structure. There were no items affecting comparability
in the comparison period.
Philippe Delorme, President and CEO:
”The second quarter demonstrated strength across both the Service and
Modernization businesses, as we continue to execute and deliver on our
strategy.This is testament to the resilience of our business model. Service
sales grew again by nearly 10% and is now our largest business. Modernization
sales saw an impressive increase of almost 20%. This positive development
reflects our continued focus on delivering customer value and strong field
execution. Order momentum was solid, and I was particularly pleased to see our
partial modernization offering gaining further traction in the market. I am
proud of the KONE team’s accomplishments this quarter, especially considering
the complex global environment and I would like to extend my sincere thanks for
their dedication and hard work.
Importantly, we achieved continued profitability improvement, with our adjusted
EBIT margin rising to 12.2% for the quarter.A favorable business mix was the
main driver, which helped to mitigate ongoing margin pressure in the Chinese new
equipment market. We also made progress in initiatives related to sales and
operations excellence, as well as procurement efficiency. I expect these efforts
to contribute more meaningfully to our financial performance starting next
year.
One of our strategic ambitions is to be the number one choice for both employees
and customers.Our annual surveys provide valuable insights into how we are
progressing. I was very pleased to see this year’s results showing sustained
high levels of employee engagement and strong alignment with our strategic
direction. Customer feedback, meanwhile, reinforces my belief in the importance
of leveraging data to increase transparency and improve customer experience. In
this context, reaching nearly 38% connectivity in our maintenance base and
accelerating the deployment of digital tools in field service operations mark
important progress. Enhancing the competitiveness of our offering through
sustainable innovation is another key driver of customer satisfaction. We are
committed to scaling our energy efficient solutions, and I am pleased to share
that we have reached an important milestone in this journey, with close to 60%
of deliveries equipped with regenerative drives.
As we move through the year, continuing to execute our strategy with courage and
speed remains critical. While acknowledging trade policy related uncertainty, we
see exciting pockets of growth in all of our markets. With our strong team and
unwavering focus on delivering superior customer value, we are well positioned
to seize the opportunities ahead.”
Operating environment in April–June 2025
The global New Building Solutions market declined clearly during the second
quarter. This was mainly due to the continued weak market conditions in China.
In North America, the market grew significantly. In Europe, the market declined
slightly. In Asia-Pacific, Middle East and Africa, activity grew significantly.
Service and Modernization markets offered the best growth opportunities. Both
markets developed positively with growth across all regions.
Intense competition continued to impact the New Building Solutions pricing
environment in China, while elsewhere pricing was more stable. In the Service
and Modernization markets, the pricing environment was more favorable.
Operating environment in January–June 2025
Regional differences in demand trends were visible in the global New Building
Solutions market during the first half of 2025. In North America, the market
grew slightly. In Europe, the market was stable with decline in the Nordics and
growth elsewhere. In Asia-Pacific, Middle East and Africa, activity grew
significantly. In China, activity continued to decline due to the property
market downturn.
The Service and Modernization markets developed positively with growth across
all regions.
Intense competition impacted the New Building Solutions pricing environment in
China, while elsewhere pricing was more stable. In the Service and Modernization
markets, the pricing environment was more favorable.
Market outlook 2025 (updated)
Activity in the New Building Solutions market is expected to vary regionally in
2025. The market is expected to be stable in North America. In Europe, activity
is expected to grow slightly. In Asia-Pacific, Middle East and Africa, activity
is expected to grow clearly. In China, the market is expected to decline
significantly.
Modernization markets are expected to grow in all regions supported by an aging
equipment base as well as the focus on sustainability and adaptability of
buildings.
Service markets are expected to grow clearly in Asia-Pacific, Middle East and
Africa and grow slightly in other regions.
Business outlook 2025 (specified)
KONE expects its sales to grow 2-5% at comparable exchange rates in 2025.
Adjusted EBIT margin is expected to be in the range of 11.8%-12.4%. Assuming
that foreign exchange rates remain at the July 2025 level, the negative impact
of foreign exchange rates on the adjusted EBIT is expected to be approximately
EUR 50 million.
Key drivers for sales growth are the positive outlook for Service and
Modernization and the solid order book. The declining New Building Solutions
market in China is a headwind.
The key profitability drivers are sales growth in Service and Modernization and
the ramp up of performance initiatives. The challenging New Building Solutions
market in China, slight overall decline in margin of orders booked in 2024, and
a limited impact from tariffs are expected to impact profitability negatively.
Press and analyst meetings
A Microsoft Teams call for the press, conducted in English, will be held on
Friday, July 18, 2025, at 9:00 a.m. EEST. Journalists are kindly asked to sign
registration.
A webcast for analysts, conducted in English, will begin at 10:30 a.m. EEST and
will be available on https://rajucast.tv/en/kone/kone-2025-0718-q2/. An on
-demand version of the webcast will be available on http://www.kone.com/en/investors
later the same day. The event can also be joined via a telephone conference.
Participant code: 180725 or KONE
For further information, please contact: