KONE (KNEBV) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw strong order growth of 7.8% at comparable rates, with over 60% of sales from Service and Modernization, and double-digit growth in Modernization sales.

• Profitability improved, with adjusted EBIT margin rising to 12.3% and robust cash flow from operations reaching EUR 444.4 million.

• The business transformation increased resilience, supporting progress toward 2025 and mid-term financial targets.

• Digitalization advanced, with nearly 40% of the maintenance base connected and remote service available in 35 countries.

• Secured a landmark contract for Jeddah Tower, reinforcing leadership in high-rise solutions.

Financial highlights

• Orders received in Q3 2025 were EUR 2,139.5 million, up 7.8% at comparable rates; sales reached EUR 2,762.0 million, up 3.9% at comparable rates.

• Adjusted EBIT margin improved by 75 basis points to 12.3%, with adjusted EBIT at EUR 340.7 million.

• Cash flow from operations surged 28.9% year-over-year to EUR 444.4 million in Q3 2025.

• Basic earnings per share for Q3 2025 was EUR 0.43, down 9.1% year-over-year.

• Net working capital at EUR -818.0 million as of September 30, 2025.

Outlook and guidance

• Sales are expected to grow 3–5% at comparable exchange rates for 2025, with adjusted EBIT margin between 11.9% and 12.3%.

• Negative FX impact on adjusted EBIT is estimated at EUR 30 million if October 2025 rates persist.

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

• For 2026, inflationary wage pressure and China market weakness are expected, but performance initiatives and product cost reductions should support earnings.