KONE (KNEBV) Q2 2026 earnings summary

Executive summary

• Orders grew by 10.9%–11% year-over-year, with double-digit growth in Modernization across all regions and strong momentum in Asia-Pacific, Middle East, and Africa.

• Adjusted EBIT margin expanded by 40 basis points to 12.6% in Q2 2026, reflecting a richer sales mix and improved operating leverage.

• Cash generation was robust, with H1 2026 cash flow from operations reaching EUR 936.5 million, mainly due to working capital improvements.

• Strategic execution advanced, including increased connectivity in the maintenance portfolio, progress on sustainability targets, and Rise strategy initiatives.

• Integration planning for the TKE combination is underway, with strong shareholder support and regulatory filings progressing.

Financial highlights

• Orders received in Q2 2026 rose 10.6% to EUR 2,562.3 million; sales increased by 3.1% to EUR 2,937.6 million.

• Adjusted EBIT reached EUR 370 million in Q2 2026, with margin improving to 12.6%; H1 2026 adjusted EBIT was EUR 663.5 million (11.8% margin).

• Service and Modernization sales grew by 5.6%–8.8%, offsetting a decline in New Building Solutions, especially in Greater China.

• Cash flow from operations for H1 2026 was EUR 936.5 million, up from EUR 851.1 million year-over-year.

• Basic EPS declined 13.1% to EUR 0.46 in Q2 2026; H1 2026 net income was EUR 454.7 million.

Outlook and guidance

• Full-year 2026 outlook unchanged: sales expected to grow 3%–6% at comparable exchange rates, with adjusted EBIT margin guidance of 12.3%–13%.

• Service and Modernization are key growth drivers; New Building Solutions in China remains a headwind.

• Modernization and service markets remain active globally, supporting growth opportunities.

• Inflation, wage increases, and geopolitical risks are key headwinds, but targeted actions are expected to offset these.

• Foreign exchange impact on adjusted EBIT margin expected to be limited if rates remain stable.