Konecranes (KCR) Pre-Silent Call summary

Executive summary

• Sales funnels remain strong, with only a slight decrease in new cases, maintaining a healthy overall level.

• U.S. demand is flattening, with sentiment shifting from excellent to stable or slightly worse, while European sentiment, especially in Germany, is improving.

• Tariffs on Chinese cranes (25%) will take effect in May, but are not expected to significantly alter supply chains due to China's cost efficiency.

• No major changes in government subsidy programs or their impact on sales funnels; situation remains largely unchanged.

Trading performance and revenue trends

• Net sales are expected to remain approximately at the same level in 2025 compared to 2024.

• Order intake in Q4 was strong, driven by a large deal and continued good performance in standard credit orders.

• Lower order book for 2025 compared to 2024, especially in ports, but still solid in other businesses.

• Seasonality patterns in 2023 and 2024 were atypical, with strong Q1 and Q2; a return to normal seasonality is anticipated for 2025.

Profitability and margins

• EBIT margin is expected to remain at or improve over 2024 levels in 2025.

• Shift to delivering more components rather than full cranes in Germany has improved margin profile and efficiency.

• Margin improvement drivers and US port cranes market were key areas of investor interest.