KONE Corporation, stock exchange release, October 23, 2025 at 8.30 a.m. EEST
Interim Report of KONE Corporation for January-September 2025
Strong growth in orders received, continued improvement in profitability
July-September 2025
- Orders received grew by 3.0% to EUR 2,139.5 (7-9/2024: 2,076.6) million. At comparable exchange rates, orders grew by 7.8%.
- Sales grew by 0.3% to EUR 2,762.0 (2,753.6) million. At comparable exchange rates, sales grew by 3.9%.
- Operating income (EBIT) was EUR 334.4 (319.4) million or 12.1% (11.6%) of sales. The adjusted EBIT was EUR 340.7 (319.4) million or 12.3% (11.6%) of sales.*
- Cash flow from operations (before financing items and taxes) was EUR 444.4 (344.8) million.
January-September 2025
- Orders received grew by 2.9% to EUR 6,834.1 (1-9/2024: 6,640.0) million. At comparable exchange rates, orders grew by 5.2%.
- Sales grew by 2.0% to EUR 8,284.4 (8,122.8) million. At comparable exchange rates, sales grew by 3.9%.
- Operating income (EBIT) was EUR 949.0 (916.5) million or 11.5% (11.3%) of sales. The adjusted EBIT was EUR 967.4 (916.5) million or 11.7% (11.3%) of sales.*
- Cash flow from operations (before financing items and taxes) was EUR 1,295.5 (1,055.6) million.
Business outlook for 2025 (specified)
KONE expects its sales to grow 3-5% at comparable exchange rates in 2025. Adjusted EBIT margin is expected to be in the range of 11.9%-12.3%. Assuming that foreign exchange rates remain at the October 2025 level, the negative impact of foreign exchange rates on the adjusted EBIT is expected to be approximately EUR 30 million.
KONE previously expected its sales to grow 2-5% 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 July 2025 level, the negative impact of foreign exchange rates on the adjusted EBIT was expected to be approximately EUR 50 million.
| Key figures | 7-9/2025 | 7-9/2024 | Change | 1-9/2025 | 1-9/2024 | Change | 1-12/2024 | |
| Orders received | MEUR | 2,139.5 | 2,076.6 | 3.0% | 6,834.1 | 6,640.0 | 2.9% | 8,758.9 |
| Order book | MEUR | 8,839.2 | 9,001.2 | -1.8% | 9,058.6 | |||
| Sales | MEUR | 2,762.0 | 2,753.6 | 0.3% | 8,284.4 | 8,122.8 | 2.0% | 11,098.4 |
| Operating income | MEUR | 334.4 | 319.4 | 4.7% | 949.0 | 916.5 | 3.6% | 1,249.0 |
| Operating income margin | % | 12.1 | 11.6 | 11.5 | 11.3 | 11.3 | ||
| Adjusted EBIT* | MEUR | 340.7 | 319.4 | 6.6% | 967.4 | 916.5 | 5.6% | 1,303.0 |
| Adjusted EBIT margin* | % | 12.3 | 11.6 | 11.7 | 11.3 | 11.7 | ||
| Income before tax | MEUR | 306.9 | 322.1 | -4.7% | 946.2 | 924.6 | 2.3% | 1,254.1 |
| Net income | MEUR | 226.9 | 249.6 | -9.1% | 719.1 | 716.6 | 0.4% | 961.0 |
| Basic earnings per share | EUR | 0.43 | 0.48 | -9.1% | 1.37 | 1.37 | 0.3% | 1.84 |
| Cash flow from operations (before financing items and taxes) | MEUR | 444.4 | 344.8 | 1,295.5 | 1,055.6 | 1,589.3 | ||
| Interest-bearing net debt | MEUR | -479.5 | -560.1 | -831.2 | ||||
| Equity ratio | % | 36.8 | 39.1 | 39.8 | ||||
| Return on equity | % | 35.3 | 35.5 | 33.8 | ||||
| Net working capital (including financing items and taxes) | MEUR | -818.0 | -720.4 | -827.2 | ||||
| Gearing | % | -18.9 | -21.5 | -28.7 |
* KONE presents adjusted EBIT as an alternative performance measure to enhance comparability of business performance between reporting periods. In January-September 2025, items affecting comparability amounted to EUR 18.3 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:
"We delivered a strong third quarter, marked by solid financial performance and continued progress in strategy execution. Importantly, the pivot toward services and modernization is proving successful. Representing over 60% of our revenue, these businesses underscore the resilience of our business model.
I am particularly pleased with the excellent strides we are making in digitalization. We have accelerated both the pace at which we are connecting our maintenance base and the deployment of productivity-enhancing tools for our field service teams. Equally encouraging is the positive customer response to our modular partial modernization offering. It clearly validates the benefits of the solution, which include cost effectiveness, enhanced energy efficiency and minimized disruption, and the direction in which we are developing our offering.
From a financial perspective, a key highlight this quarter was the nearly 8% comparable growth in orders received. We achieved an increase of over 10% in three out of four areas and our Modernization business grew double-digit. Profitability improved sequentially, reaching 12.3% in the quarter. This was a good outcome driven by robust growth in Service and Modernization sales, which helped offset continued headwinds in the Chinese new equipment markets. I would like to sincerely thank the entire KONE team for their consistent dedication to driving our performance and advancing our Rise strategy.
Looking ahead, we have specified our guidance for 2025, now expecting sales growth of 3-5% and an adjusted EBIT margin of 11.9-12.3%. I continue to see exciting opportunities to grow Service and Modernization in the coming years and potential to further enhance our performance through ongoing initiatives in procurement and sales & operations excellence. Although the business environment remains complex, I am confident in the momentum we are building toward reaching our mid-term financial targets."
Operating environment in July-September 2025
The global New Building Solutions market declined clearly during the third quarter. This was mainly due to the continued weak market conditions in China. The market in North America and in Europe grew slightly. In Asia-Pacific, Middle East and Africa, activity grew clearly.
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-September 2025
Regional differences in demand trends were visible in the global New Building Solutions market during January-September 2025. In North America, trade policy impacts were visible early in the year, but activity rebounded towards the summer. In Europe, the market grew slightly with weaker activity in the Nordics and more robust growth elsewhere. In Asia-Pacific, Middle East and Africa, activity grew clearly. In China, activity declined significantly 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 grow slightly in North America and in Europe. 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 2024 (specified)
KONE expects its sales to grow 3-5% at comparable exchange rates in 2025. Adjusted EBIT margin is expected to be in the range of 11.9%-12.3%. Assuming that foreign exchange rates remain at the October 2025 level, the negative impact of foreign exchange rates on the adjusted EBIT is expected to be approximately EUR 30 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 Thursday, October 23, 2025 at 09:00 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/fi/kone/kone-2025-1023-q3/. An on-demand version of the webcast will be available on www.kone.com 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/Sweden: +46 (0) 8 50520424
Participant code: 231025
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