KONE (KNEBV) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 performance with sales up 4.1% to EUR 2,672.3 million and orders received up 6.4% to EUR 2,378.4 million, driven by robust Service and nearly 20% Modernization growth, especially outside China.

• Margin expansion continued for the ninth consecutive quarter, with adjusted EBIT up 6.6% to EUR 279.6 million and margin improving by 25 basis points to 10.5%.

• Service and Modernization segments demonstrated resilience, offsetting significant declines in New Building Solutions in China.

• Cash flow from operations increased by approximately EUR 90 million year-over-year to EUR 486.7 million.

• Sustainability initiatives advanced, with over half of elevators sold in Q1 equipped with regenerative drives and continued external recognition for climate leadership.

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%, reaching EUR 279.6 million.

• Operating cash flow rose to EUR 486.7 million, supported by working capital improvements and order growth.

• Basic EPS rose 4.7% to EUR 0.41; net income increased 4.6% to EUR 215.3 million.

• Interest-bearing net debt stood at EUR -335.7 million; equity ratio at 31.7%.

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 headwind estimated at EUR 50 million EBIT impact if rates remain at April 2025 levels.

• Service and Modernization are key growth drivers; New Building Solutions in China expected to decline significantly.

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