KONE (KNEBV) Q4 2025 earnings summary

Executive summary

• Service and Modernization drove performance, now comprising over 40% of sales and supporting margin expansion and resilience, with digitalization advancing and over 40% of the maintenance base connected.

• Sustainability targets exceeded, with a 13% reduction in Scope 3 emissions and impact revenue now over half of total sales; recognized in global sustainability rankings.

• Board proposes a €1.80 dividend per Class B share, yielding nearly 3%.

Financial highlights

• Orders grew 12.2% year-over-year at comparable currencies in Q4, with double-digit growth in Americas and APMEA; sales increased 4.3% in Q4, led by Modernization and Service.

• Adjusted EBIT margin expanded by 60 basis points in Q4, reaching 13.6%; full-year adjusted EBIT margin was 12.2%.

• Full-year cash flow from operations rose to €1,761.3 million, with working capital improvement.

• Operating income (EBIT) for FY 2025 was €1,336.2 million; basic EPS €1.89.

Outlook and guidance

• 2026 sales expected to grow 2–6% at comparable currencies; adjusted EBIT margin guided at 12.3–13.0%, with a 10bps negative FX impact if rates remain at January 2026 levels.

• Modernization and Service markets expected to remain active globally; New Building Solutions in China to remain challenging.

• Geopolitical risks, wage inflation, and FX remain headwinds, but strong order book and performance initiatives provide tailwinds.