KONE (KNEBV) Q1 2026 earnings summary

Executive summary

• Announced a planned combination with TKE to create a world-class industry leader with complementary strengths and global reach.

• Achieved sales growth of 6.7% year-over-year at comparable exchange rates, with Service and Modernization accounting for 67% of sales and supporting margin expansion.

• Healthy cash generation and continued execution of strategic initiatives, including the 'Rise' strategy.

• Orders received grew 3.9% at comparable currencies, despite a reported decline.

• Modernization and Service segments drove growth, with aftermarket sales exceeding 65% of total.

Financial highlights

• Q1 sales increased by 6.7% year-over-year at comparable FX, reaching €2,708.3 million.

• Adjusted EBIT margin improved to 10.8%, with adjusted EBIT up 5.0% to €293.6 million.

• Cash flow from operations rose to €500 million.

• Basic EPS remained stable at €0.41.

• Interest-bearing net debt improved to EUR -208.3 million.

Outlook and guidance

• Sales growth guidance specified at 3–6% for 2026 at comparable exchange rates.

• Adjusted EBIT margin guidance set at 12.3–13.0% for 2026.

• Growth opportunities seen in Service and Modernization, while New Building Solutions in China and inflationary wage pressures remain challenges.

• Limited FX impact on adjusted EBIT margin if rates remain at April 2026 levels.

• Confident in delivering margins within guidance, with headwinds and tailwinds broadly unchanged except for increased geopolitical risks.