KONE Corporation, stock exchange release, October 28, 2026 at 8:30 a.m. EET
Interim report of KONE Corporation for January-September 2026
Solid execution, continued growth momentum
July-September 2026
- Orders received grew by 7.2% to EUR 2,292.9 (7-9/2025: 2,139.5) million. At comparable exchange rates, orders grew by 5.5%.
- Sales grew by 5.2% to EUR 2,906.0 (2,762.0) million. At comparable exchange rates, sales grew by 3.8%.
- Operating income (EBIT) was EUR 339.0 (334.4) million or 11.7% (12.1%) of sales. The adjusted EBIT was EUR 369.0 (340.7) million or 12.7% (12.3%) of sales.*
- Cash flow from operations (before financing items and taxes) was EUR 347.9 (444.4) million.
January-September 2026
- Orders received grew by 5.2% to EUR 7,186.6 (1-9/2025: 6,834.1) million. At comparable exchange rates, orders grew by 6.8%.
- Sales grew by 3.2% to EUR 8,552.0 (8,284.4) million. At comparable exchange rates, sales grew by 4.6%.
- Operating income (EBIT) was EUR 944.2 (949.0) million or 11.0% (11.5%) of sales. The adjusted EBIT was EUR 1,032.5 (967.4) million or 12.1% (11.7%) of sales.*
- Cash flow from operations (before financing items and taxes) was EUR 1,284.3 (1,295.5) million.
Business outlook for 2026 (specified)
KONE expects its sales to grow 4-6% at comparable exchange rates in 2026 and its adjusted EBIT margin to be in the range of 12.5-12.9%. Assuming that foreign exchange rates remain at the October 2026 level, the impact of foreign exchange rates on the adjusted EBIT margin would be limited.
KONE previously expected 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%. The impact of foreign exchange rates on the adjusted EBIT margin was expected to be limited, assuming rates remained at the July 2026 level.
Key figures
| 7-9/2026 | 7-9/2025 | Change | 1-9/2026 | 1-9/2025 | Change | 1-12/2025 | ||
| Orders received | MEUR | 2,292.9 | 2,139.5 | 7.2% | 7,186.6 | 6,834.1 | 5.2% | 9,087.4 |
| Order book ** | MEUR | 9,804.6 | 8,717.7 | 12.5% | 8,693.0 | |||
| Sales | MEUR | 2,906.0 | 2,762.0 | 5.2% | 8,552.0 | 8,284.4 | 3.2% | 11,245.2 |
| Operating income | MEUR | 339.0 | 334.4 | 1.4% | 944.2 | 949.0 | -0.5% | 1,336.2 |
| Operating income margin | % | 11.7 | 12.1 | 11.0 | 11.5 | 11.9 | ||
| Adjusted EBIT * | MEUR | 369.0 | 340.7 | 8.3% | 1,032.5 | 967.4 | 6.7% | 1,369.3 |
| Adjusted EBIT margin * | % | 12.7 | 12.3 | 12.1 | 11.7 | 12.2 | ||
| Income before tax | MEUR | 355.6 | 306.9 | 15.9% | 950.0 | 946.2 | 0.4% | 1,326.8 |
| Net income | MEUR | 272.0 | 226.9 | 19.9% | 726.8 | 719.1 | 1.1% | 991.9 |
| Basic earnings per share | EUR | 0.52 | 0.43 | 19.3% | 1.39 | 1.37 | 1.0% | 1.89 |
| Cash flow from operations (before financing items and taxes) | MEUR | 347.9 | 444.4 | 1,284.3 | 1,295.5 | 1,761.3 | ||
| Interest-bearing net debt *** | MEUR | -716.1 | -479.5 | -699.8 | ||||
| Equity ratio | % | 38.1 | 36.8 | 39.9 | ||||
| Return on equity | % | 34.5 | 35.3 | 34.7 | ||||
| Net working capital (including financing items and taxes) *** | MEUR | -876.3 | -818.0 | -797.6 | ||||
| Gearing | % | -25.6 | -18.9 | -24.8 |
* KONE presents adjusted EBIT as an alternative performance measure to enhance comparability of business performance between reporting periods. In January-September 2026, items affecting comparability amounted to EUR 88.3 million consisting of EUR 48.5 million costs relating to the TKE transaction as well as costs related to restructuring and the resettlement of a defined benefit pension plan. In the comparison period, 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.
** Comparison period 2025 has been restated. More information is available in the Other notes section of the Interim report.
*** Interest-bearing net debt includes non-current deferred assets of EUR 32.5 million, non-current derivative assets of EUR 161.2 million and non-current derivative liabilities of EUR 6.4 million, all related to the TKE transaction. Other derivatives arising from operational activities, presented within current assets and liabilities, are included in net working capital.
Philippe Delorme, President and CEO:
"The third quarter was characterized by solid execution, continued growth momentum, and excellent progress in bringing customer-focused innovations to market. Modernization once again served as the key driver of order growth, this quarter supported by strong activity in the volume business. From a regional perspective, Asia-Pacific, the Middle East and Africa stood out, with impressive growth in the Middle East.
It was also encouraging to see our resilience once again reflected in improved profitability. Margin expansion was supported by a favorable business mix and fixed-cost leverage, while inflationary pressures were managed effectively. Together, these factors demonstrate the resilience of our business model and our ability to deliver profitable growth across varying market conditions.
Importantly, the third quarter brought several tangible examples of innovation in action, translating our strategic priorities into solutions that create customer value and support long-term value creation. In high-rise, we continued to push the boundaries of our offering with new technologies that enable exceptional travel heights, free up valuable floor space and deliver enhanced user experience. Innovation was equally visible in the residential segment, where our Homelift concept for China's growing luxury housing market received the Best of the Best distinction in the Red Dot Design Award. In Europe, we launched our one-week modernization approach, combining standardization, industrialization and modularity to significantly shorten installation times, minimize disruption and deliver a smoother modernization experience for our customers. Digital acceleration remains a top priority, and India is a strong example of focused efforts translating into a significant step-up in maintenance base connectivity. Building on this momentum, our recently opened industry-first Digital Experience Center in India gives customers a tangible view of how AI, connectivity and data can improve reliability, efficiency and performance across the building lifecycle.
These innovations position us well as we prepare to combine with TKE and create even greater value for customers. The transaction continues to progress according to plan, with our first regulatory clearances received during the quarter. Integration planning is advancing well; with Day 1 plans being refined and a clear roadmap taking shape to capture the substantial synergies underpinning the strategic rationale of the combination.
Looking ahead, we have specified our guidance for the year. We now expect sales growth of 4-6% and an adjusted EBIT margin of 12.5-12.9%. Our order book provides good support for future growth, and we remain focused on consistent execution toward our mid-term adjusted EBIT margin target corridor of 13-14%. I would like to thank all our employees for their dedication and commitment. Their focus on customers, innovation and strong execution remains fundamental to our success."
July-September 2026
The global New Building Solutions market declined slightly during the third quarter with regional differences in demand. The market in North America declined slightly and in Europe the market was stable. In Asia-Pacific, Middle East and Africa, activity grew clearly. Market remained weak in China.
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.
January-September 2026
The demand environment was favorable in many areas in the global New Building Solutions market in January-September 2026. The market in North America and in Europe grew slightly. In Asia-Pacific, Middle East and Africa, activity grew clearly, supported by healthy momentum in India, Australia and in the Middle East. In China, the market declined significantly as construction activity remained weak.
The Service market developed positively with growth across all regions. Modernization growth was strong globally, supported by the aging of equipment and the demand for improved energy efficiency.
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 2026 (updated)
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 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 2026 (specified)
KONE expects its sales to grow 4-6% at comparable exchange rates in 2026 and its adjusted EBIT margin to be in the range of 12.5-12.9%.
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 is expected to impact profitability negatively. Geopolitical tensions are adding to inflationary pressure.
Press and analyst events
A Microsoft Teams call for the press, conducted in English, will be held on Wednesday, October 28, 2026 at 9:00 a.m. EET.
A webcast for analysts, conducted in English, will begin at 10:30 a.m. EET and will be available on kone.events.inderes.com/2026-q3. An on-demand version of the webcast will be available on www.kone.com/global/en/investors later the same day. Participants wishing to ask questions may join the telephone conference by registering through the following link: events.inderes.com/kone/2026-q3/dial-in
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
