KONE (KNEBV) Q1 2025 earnings summary

Executive summary

• Strong start to 2025 with robust financial performance, driven by Service and Modernization growth, while New Building Solutions in China declined significantly; strategy execution and profitability improved.

• Orders received grew 6.4% year-over-year to EUR 2,378.4 million, with sales up 4.1% to EUR 2,672.3 million; momentum was broad-based outside China.

• Margin expansion achieved for the ninth consecutive quarter, supported by favorable business mix and operational improvements.

• Service and Modernization segments demonstrated resilience, supporting overall financial targets and offsetting China headwinds.

• Sustainability initiatives advanced, with over half of elevators sold equipped with regenerative drives and continued industry recognition.

Financial highlights

• Orders received rose 6.4% year-over-year to EUR 2,378.4 million; sales increased 4.1% to EUR 2,672.3 million, with Service up 8.5% and Modernization up 19.8%.

• Adjusted EBIT margin improved by 25 basis points year-over-year to 10.5%, with adjusted EBIT at EUR 279.6 million.

• Operating cash flow rose to EUR 486.7 million, up from EUR 398.2 million year-over-year.

• Basic EPS increased 4.7% to EUR 0.41; net income reached EUR 215.3 million.

• Service growth outside China exceeded 10%.

Outlook and guidance

• Sales expected to grow 1–6% at comparable exchange rates in 2025; adjusted EBIT margin guided at 11.8–12.4%.

• FX expected to be a headwind, with a potential EUR 50 million negative EBIT impact if rates remain at April 2025 levels.

• Service and Modernization are key growth drivers; New Building Solutions in China expected to decline, while Europe and APMEA show growth.

• Modernization and Service markets forecasted to grow in all regions; New Building Solutions to decline in China and slightly in North America.