TK Elevator (TKELEVATOR) investor relations material

Executive summary

• Achieved all-time highs in adjusted EBITDA and margin for both Q4 and the full year, driven by strong operational execution and strategic milestones, including the launch of new service models and a major partnership in the Middle East.

• EOX platform drove significant share gains in Europe and The Americas, with EOX orders up 26% in Q4 and over 50% for the year.

• Service and modernization (mod) businesses, now two-thirds of revenue and over 90% of profits, delivered consistent growth and margin expansion.

• Aggressive cost control and commercial discipline led to record-low SG&A as a percentage of sales.

Financial highlights

• Q4 orders rose 4% year-over-year to €2.3 billion, with service up 6% and NI orders up 4%, offset by lower mod orders in The Americas.

• Revenues increased 2% to €2.3 billion in Q4, with service and mod growth offsetting lower NI sales, mainly in China.

• Adjusted EBITDA for Q4 was €447 million, up 12% year-over-year, with margins expanding 170 basis points to 19.1%.

• Full-year orders up 2% organically to €9.2 billion; service up 5%, mod up 2%, NI down 1% due to China.

• Adjusted EBITDA for the year was €1.6 billion, up 12% organically, with margin up 170 basis points to 17.5%.

• Operating cash flow for the year was €1.29 billion, up 20% year-over-year.

Outlook and guidance

• Service and mod markets expected to see continued growth across all regions, driven by an aging installed base and regulatory requirements.

• New installations outlook is mixed: low single-digit growth in The Americas and Europe, continued weakness in China, and positive trends in India, the Middle East, and expected recovery in Korea.

• Q1 of the new fiscal year expected to show year-over-year growth in sales, EBITDA, and margins, with Americas and Europe Africa offsetting lower Asia Pacific sales.