KONE Corporation, stock exchange release, April 29, 2026 at 8.30 a.m. EEST
Interim report of KONE Corporation for January-March 2026
Solid quarter with sales growth and improved profitability
January-March 2026
- Orders received declined by 2.0% to EUR 2,331.4 (1-3/2025: 2,378.4) million. At comparable exchange rates, orders grew by 3.9%.
- Sales grew by 1.3% to EUR 2,708.3 (2,672.3) million. At comparable exchange rates, sales grew by 6.7%.
- Operating income (EBIT) was EUR 283.0 (276.7) million or 10.4% (10.4%) of sales. The adjusted EBIT was EUR 293.6 (279.6) million or 10.8% (10.5%) of sales.*
- Cash flow from operations (before financing items and taxes) was EUR 500.0 (486.7) million.
Business outlook for 2026 (specified)
KONE expects its sales to grow 3-6% at comparable exchange rates in 2026 and its adjusted EBIT margin to be in the range of 12.3-13.0%. Assuming that foreign exchange rates remain at the April 2026 level, the impact of foreign exchange rates on the adjusted EBIT margin would be limited.
KONE previously expected its sales to grow 2-6% at comparable exchange rates in 2026 and its adjusted EBIT margin to be in the range of 12.3-13.0%. The negative impact of foreign exchange rates on the adjusted EBIT margin was expected to be approximately 10 basis points, assuming rates remained at the January 2026 level.
| Key figures | 1-3/2026 | 1-3/2025 | Change | 1-12/2025 | |
| Orders received | MEUR | 2,331.4 | 2,378.4 | -2.0% | 9,087.4 |
| Order book ** | MEUR | 9,208.6 | 9,116.2 | 1.0% | 8,693.0 |
| Sales | MEUR | 2,708.3 | 2,672.3 | 1.3% | 11,245.2 |
| Operating income | MEUR | 283.0 | 276.7 | 2.3% | 1,336.2 |
| Operating income margin | % | 10.4 | 10.4 | 11.9 | |
| Adjusted EBIT * | MEUR | 293.6 | 279.6 | 5.0% | 1,369.3 |
| Adjusted EBIT margin * | % | 10.8 | 10.5 | 12.2 | |
| Income before tax | MEUR | 278.6 | 279.6 | -0.4% | 1,326.8 |
| Net income | MEUR | 214.6 | 215.3 | -0.4% | 991.9 |
| Basic earnings per share | EUR | 0.41 | 0.41 | -0.3% | 1.89 |
| Cash flow from operations (before financing items and taxes) | MEUR | 500.0 | 486.7 | 1,761.3 | |
| Interest-bearing net debt | MEUR | -208.3 | -335.7 | -699.8 | |
| Equity ratio | % | 31.2 | 31.7 | 39.9 | |
| Return on equity | % | 34.6 | 34.3 | 34.7 | |
| Net working capital (including financing items and taxes) | MEUR | -917.2 | -954.0 | -797.6 | |
| Gearing | % | -9.8 | -15.8 | -24.8 |
* KONE presents adjusted EBIT as an alternative performance measure to enhance comparability of business performance between reporting periods. In January-March 2026, items affecting comparability amounted to EUR 10.6 million consisting of restructuring costs. In the comparison period, items affecting comparability amounted to EUR 2.8 million consisting of costs related to the separation of KONE Door Business under its own legal structure.
**The figures for the comparison period 2025 have been restated. More information is available in the Other notes section of the Interim report.
Philippe Delorme, President and CEO:
"2026 started on a solid note, with first-quarter financial performance in line with expectations and good momentum in strategy execution. This was achieved despite heightened geopolitical tensions related to the war in the Middle East where our foremost priority is the safety of our employees and our customers. The resilience shown by our people in the region has been admirable, and business disruptions have so far been limited. Should the conflict persist, however, its impacts would become more visible in the coming quarters.
Orders received increased slightly from a high year-on-year comparison period, supported by strong growth in Europe and in Asia-Pacific, Middle East and Africa. Sales growth was broad-based, with all areas and businesses contributing to a nearly 7% increase. Modernization continued to grow at a double-digit rate and I was particularly pleased to see our aftermarket share of sales rising to over 65%. Together with the benefits from our performance initiatives, this supported a 30-basis point improvement in adjusted EBIT margin despite headwinds from exchange rates. Overall, the first quarter represents another period of consistent delivery against our profitable growth ambitions.
Our RISE strategy advanced well during the quarter. We continued to both grow maintenance base connectivity and roll out field productivity tools at a healthy pace. An excellent example of productivity-enhancing solutions is Technician Assistant - an AI-based tool that enables field technicians to interactively access relevant technical information and troubleshooting guidance, helping them solve issues independently and significantly faster. Digital innovation was also in focus as we celebrated our 30-year anniversary in China in March. The celebrations provided an excellent platform to showcase our data-driven solutions and the enhanced customer value and user experience they deliver. Our connected and intelligent offering also plays an important role in supporting more energy efficient buildings and safer, more reliable people flow. In this context, I am particularly proud of the external recognition we have received for our sustainability progress, most notably our recent upgrade to Platinum status in the EcoVadis ratings.
While geopolitical uncertainties persist, we are confident in our progress toward our financial targets for this year and beyond. Our transformation toward Service and Modernization underpins this progress and continues to be a key driver of resilience and long-term value creation. I would like to take this opportunity to thank our employees for their commitment and strong execution."
Operating environment January-March 2026
The global New Building Solutions market declined slightly during the first quarter. This was mainly due to the continued weak market conditions in China. In North America, the market grew significantly. In Asia-Pacific, Middle East and Africa, the market grew significantly thanks in particular to healthy momentum in India. In Europe, the market grew slightly, mainly due to positive development in the non-residential segment.
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.
Market outlook 2026 (unchanged)
Activity in the New Building Solutions market is expected to vary regionally in 2026. 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 clearly.
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 2026 (specified)
KONE expects its sales to grow 3-6% at comparable exchange rates in 2026 and its adjusted EBIT margin to be in the range of 12.3-13.0%. Assuming that foreign exchange rates remain at the April 2026 level, the impact of foreign exchange rates on the adjusted EBIT margin would be limited.
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 drivers of EBIT margin expansion are sales growth in Service and Modernization and increased contribution from performance initiatives. The challenging New Building Solutions market in China and continued inflationary pressure on wages are expected to impact profitability negatively. Geopolitical tensions are also a headwind.
Press and analyst meetings
A Microsoft Teams call for the press, conducted in English, will be held on Wednesday, April 29, 2026 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://join.rajucast.tv/KONE-2026-0429-Q1. 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.
USA: +1 786 697 3501
UK: +44 (0) 33 0551 0200
Finland / Sweden: +46 (0) 8 5052 0424
Participant code: 290426
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 2025, KONE had annual sales of EUR 11.2 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
