KONE (KNEBV) Q4 2024 earnings summary

Executive summary

• Service and Modernization segments delivered strong double-digit sales growth, offsetting declines in New Building Solutions, especially in China.

• Achieved eighth consecutive quarter of profitability improvement and proposed a dividend of EUR 1.80 per B-class share (3.8% yield).

• Orders received grew 2.1% year-over-year to EUR 8,759 million; sales increased 1.3% to EUR 11,098 million.

• Adjusted EBIT margin improved to 11.7% for the year, with Q4 margin at 13.0% and full-year adjusted EBIT at EUR 1,303 million.

• Strong cash generation in Q4 and full year, with cash flow from operations reaching EUR 1,589 million.

Financial highlights

• Q4 2024 sales grew 5.9% year-over-year to EUR 2,976 million; full-year sales up 1.3% to EUR 11,098 million.

• Orders received in Q4 2024 rose 3.4% year-over-year to EUR 2,119 million; outside China, order growth exceeded 10%.

• Adjusted EBIT for Q4 2024 grew 7.8% year-over-year to EUR 387 million (margin 13.0%).

• Basic EPS for Q4 2024 was EUR 0.47; full-year EPS EUR 1.84.

• Net working capital improved to EUR -827 million at year-end 2024.

Outlook and guidance

• Sales expected to grow slightly at comparable currencies in 2025, with continued profitability improvement.

• Modernization and services markets expected to remain active and grow in all regions; China New Building Solutions to remain challenging.

• Performance initiatives and business mix shift to support margin improvement, with benefits ramping up through the year.

• 11 of 12 markets forecasted to be growing or stable in 2025; China remains under pressure.

• Service and Modernization to remain key growth drivers; New Building Solutions in China expected to be a headwind.