KONE Corporation, stock exchange release, July 18, 2025 at 8.30 a.m. EEST
Half-year Financial Report of KONE Corporation for January-June 2025
Sales growth and continued margin improvement
April-June 2025
- Orders received declined by 0.5% to EUR 2,316.2 (4-6/2024: 2,327.6) million. At comparable exchange rates, orders grew by 3.0%.
- Sales grew by 1.8% to EUR 2,850.1 (2,801.0) million. At comparable exchange rates, sales grew by 4.9%.
- Operating income (EBIT) was EUR 338.0 (334.7) million or 11.9 % (11.9 %) of sales. The adjusted EBIT was EUR 347.2 (334.7) million or 12.2 % (11.9 %) of sales.*
- Cash flow from operations (before financing items and taxes) was EUR 364.4 (312.6) million.
January-June 2025
- Orders received grew by 2.9% to EUR 4,694.6 (1-6/2024: 4,563.3) million. At comparable exchange rates, orders grew by 4.0%.
- Sales grew by 2.9% to EUR 5,522.4 (5,369.3) million. At comparable exchange rates, sales grew by 3.9%.
- Operating income (EBIT) was EUR 614.7 (597.0) million or 11.1 % (11.1 %) of sales. The adjusted EBIT was EUR 626.7 (597.0) million or 11.3 % (11.1 %) of sales.*
- Cash flow from operations (before financing items and taxes) was EUR 851.1 (710.8) million.
Business outlook for 2025 (specified)
KONE expects its sales to grow 2-5% at comparable exchange rates in 2025. Adjusted EBIT margin is expected to be in the range of 11.8%-12.4%. Assuming that foreign exchange rates remain at the July 2025 level, the negative impact of foreign exchange rates on the adjusted EBIT is expected to be approximately EUR 50 million.
KONE previously expected its sales to grow 1-6% at comparable exchange rates in 2025. The improvement in adjusted EBIT margin was expected to be in the range of 11.8%-12.4%. Assuming that foreign exchange rates remain at the April 2025 level, the negative impact of foreign exchange rates on the adjusted EBIT was expected to be approximately EUR 50 million.
| Key figures | 4-6/2025 | 4-6/2024 | Change | 1-6/2025 | 1-6/2024 | Change | 1-12/2024 | |
| Orders received | MEUR | 2,316.2 | 2,327.6 | -0.5 % | 4,694.6 | 4,563.3 | 2.9 % | 8,758.9 |
| Order book | MEUR | 8,699.4 | 9,326.6 | -6.7 % | 9,058.6 | |||
| Sales | MEUR | 2,850.1 | 2,801.0 | 1.8 % | 5,522.4 | 5,369.3 | 2.9 % | 11,098.4 |
| Operating income | MEUR | 338.0 | 334.7 | 1.0 % | 614.7 | 597.0 | 3.0 % | 1,249.0 |
| Operating income margin | % | 11.9 | 11.9 | 11.1 | 11.1 | 11.3 | ||
| Adjusted EBIT* | MEUR | 347.2 | 334.7 | 3.7 % | 626.7 | 597.0 | 5.0 % | 1,303.0 |
| Adjusted EBIT margin* | % | 12.2 | 11.9 | 11.3 | 11.1 | 11.7 | ||
| Income before tax | MEUR | 359.6 | 336.8 | 6.8 % | 639.3 | 602.5 | 6.1 % | 1,254.1 |
| Net income | MEUR | 276.9 | 261.0 | 6.1 % | 492.2 | 466.9 | 5.4 % | 961.0 |
| Basic earnings per share | EUR | 0.53 | 0.50 | 5.8 % | 0.94 | 0.89 | 5.3 % | 1.84 |
| Cash flow from operations (before financing items and taxes) | MEUR | 364.4 | 312.6 | 851.1 | 710.8 | 1,589.3 | ||
| Interest-bearing net debt | MEUR | -300.4 | -417.7 | -831.2 | ||||
| Equity ratio | % | 34.3 | 36.2 | 39.8 | ||||
| Return on equity | % | 38.1 | 36.2 | 33.8 | ||||
| Net working capital (including financing items and taxes) | MEUR | -842.8 | -782.8 | -827.2 | ||||
| Gearing | % | -13.2 | -17.6 | -28.7 |
* KONE presents adjusted EBIT as an alternative performance measure to enhance comparability of business performance between reporting periods. In January-June 2025, items affecting comparability amounted to EUR 12.0 million consisting mainly of costs related to the separation of the KONE Door Business under its own legal and operative structure. There were no items affecting comparability in the comparison period.
Philippe Delorme, President and CEO:
"The second quarter demonstrated strength across both the Service and Modernization businesses, as we continue to execute and deliver on our strategy. This is testament to the resilience of our business model. Service sales grew again by nearly 10% and is now our largest business. Modernization sales saw an impressive increase of almost 20%.?This positive development reflects our continued focus on delivering customer value and strong field execution. Order momentum was solid, and I was particularly pleased to see our partial modernization offering gaining further traction in the market. I am proud of the KONE team's accomplishments this quarter, especially considering the complex global environment and I would like to extend my sincere thanks for their dedication and hard work.
Importantly, we achieved continued profitability improvement, with our adjusted EBIT margin rising to 12.2% for the quarter. A favorable business mix was the main driver, which helped to mitigate ongoing margin pressure in the Chinese new equipment market. We also made progress in initiatives related to sales and operations excellence, as well as procurement efficiency. I expect these efforts to contribute more meaningfully to our financial performance starting next year.
One of our strategic ambitions is to be the number one choice for both employees and customers. Our annual surveys provide valuable insights into how we are progressing.?I was very pleased to see this year's results showing sustained high levels of employee engagement and strong alignment with our strategic direction. Customer feedback, meanwhile, reinforces my belief in the importance of leveraging data to increase transparency and improve customer experience. In this context, reaching nearly 38% connectivity in our maintenance base and accelerating the deployment of digital tools in field service operations mark important progress. Enhancing the competitiveness of our offering through sustainable innovation is another key driver of customer satisfaction. We are committed to scaling our energy efficient solutions, and I am pleased to share that we have reached an important milestone in this journey, with close to 60% of deliveries equipped with regenerative drives.
As we move through the year, continuing to execute our strategy with courage and speed remains critical. While acknowledging trade policy related uncertainty, we see exciting pockets of growth in all of our markets. With our strong team and unwavering focus on delivering superior customer value, we are well positioned to seize the opportunities ahead."
Operating environment in April-June 2025
The global New Building Solutions market declined clearly during the second quarter. This was mainly due to the continued weak market conditions in China. In North America, the market grew significantly. In Europe, the market declined slightly. In Asia-Pacific, Middle East and Africa, activity grew significantly.
Service and Modernization markets offered the best growth opportunities. Both markets developed positively with growth across all regions.
Intense competition continued to impact the New Building Solutions pricing environment in China, while elsewhere pricing was more stable. In the Service and Modernization markets, the pricing environment was more favorable.
Operating environment in January-June 2025
Regional differences in demand trends were visible in the global New Building Solutions market during the first half of 2025. In North America, the market grew slightly. In Europe, the market was stable with decline in the Nordics and growth elsewhere. In Asia-Pacific, Middle East and Africa, activity grew significantly. In China, activity continued to decline due to the property market downturn.
The Service and Modernization markets developed positively with growth across all regions.
Intense competition impacted the New Building Solutions pricing environment in China, while elsewhere pricing was more stable. In the Service and Modernization markets, the pricing environment was more favorable.
Market outlook 2025 (updated)
Activity in the New Building Solutions market is expected to vary regionally in 2025. The market is expected to be stable in North America. In Europe, activity is expected to grow slightly. In Asia-Pacific, Middle East and Africa, activity is expected to grow clearly. In China, the market is expected to decline significantly.
Modernization markets are expected to grow in all regions supported by an aging equipment base as well as the focus on sustainability and adaptability of buildings.
Service markets are expected to grow clearly in Asia-Pacific, Middle East and Africa and grow slightly in other regions.
Business outlook 2025 (specified)
KONE expects its sales to grow 2-5% at comparable exchange rates in 2025. Adjusted EBIT margin is expected to be in the range of 11.8%-12.4%. Assuming that foreign exchange rates remain at the July 2025 level, the negative impact of foreign exchange rates on the adjusted EBIT is expected to be approximately EUR 50 million.
Key drivers for sales growth are the positive outlook for Service and Modernization and the solid order book. The declining New Building Solutions market in China is a headwind.
The key profitability drivers are sales growth in Service and Modernization and the ramp up of performance initiatives. The challenging New Building Solutions market in China, slight overall decline in margin of orders booked in 2024, and a limited impact from tariffs are expected to impact profitability negatively.
Press and analyst meetings
A Microsoft Teams call for the press, conducted in English, will be held on Friday, July 18, 2025, at 9:00 a.m. EEST. Journalists are kindly asked to sign up to media@kone.com, and they will receive a link to the call upon registration. ?
A webcast for analysts, conducted in English, will begin at 10:30 a.m. EEST and will be available on https://rajucast.tv/en/kone/kone-2025-0718-q2/. An on-demand version of the webcast will be available on www.kone.com/en/investors later the same day. The event can also be joined via a telephone conference.
U.S.: +1 786 697 3501
UK: +44 (0) 33 0551 0200
Finland: +358 9 2319 5437
Participant code: 180725 or KONE
For further information, please contact:
Natalia Valtasaari, Vice President, Investor Relations, KONE Corporation, tel. +358 204 75 4705
Sender:
KONE Corporation
Philippe Delorme
President and CEO
Ilkka Hara
CFO
About KONE
At KONE, our purpose is to shape the future of cities. As a global leader in the elevator and escalator industry, we move two billion people every day, making their journeys safe, convenient, and reliable with smart and sustainable People Flow®. In 2024, KONE had annual sales of EUR 11 billion, and at the end of the year over 60,000 employees in close to 70 countries. KONE class B shares are listed on the Nasdaq Helsinki Ltd. in Finland.
www.kone.com
