Konecranes (KCR) Pre-Silent Call summary

Executive summary

• Engaged with nearly 100 institutional investors and participated in retail investor activities, focusing on market environment, upgraded financial guidance, profitability, and capital allocation.

• Issued two stock exchange releases: a guidance upgrade and confirmation of the Shareholders' Nomination Board composition.

Trading performance and revenue trends

• Sales guidance was upgraded in September, with sales expected to increase in 2024 compared to 2023, driven by improved delivery capability rather than demand changes.

• Short-cycle product order intake, especially in components, was better than expected in the first half, positively impacting 2024 sales.

• Year-on-year sales growth in the second half is likely to be lower than in the first half, though the gap has narrowed due to better delivery capability.

Profitability and margins

• Comparable EBITA margin for Q3 is expected to be no higher than Q2, despite a slightly more positive outlook due to delivery improvements.

• Pricing has benefited from stable or declining raw material costs, particularly steel, and list prices have increased in 2024, especially in service due to rising labor costs.

• The order book remains healthy, with inflation successfully priced into customer contracts.