TK Elevator (TKELEVATOR) investor relations material

Executive summary

• Achieved a strong start to the fiscal year with broad-based order intake and earnings growth, record Q1 and LTM margins, and continued expansion of the EOX platform.

• Order intake increased 10% year-over-year, with growth across all business lines and regions, and a 20th consecutive quarter of organic service growth.

• Backlog increased both sequentially and year-over-year, providing strong visibility for future quarters.

• Strategic focus on modernization and service, now accounting for 66% of sales and over 90% of profits.

• Continued rollout of AI-supported service delivery model and Digital Operation Centers, with early efficiency gains.

Financial highlights

• Q1 order intake reached EUR 2.4 billion, up 10% year-over-year.

• Sales increased 2% to EUR 2.2 billion, driven by service and modernization growth.

• Adjusted EBITDA rose 9% to EUR 375 million, with margins up 90 basis points to 16.8%, a new Q1 high.

• Operating cash flow before interest and taxes increased 15% to EUR 165 million.

• Net debt at the end of December was EUR 7.8 billion, with net leverage at 4.5x pro forma financing EBITDA.

Outlook and guidance

• Upgraded industry outlook for modernization to high single-digit growth, reflecting strong Q1 market development and regulatory incentives, especially in China.

• New installation market outlook slightly reduced to a low single-digit decline, mainly due to continued weakness in China.

• Priorities include aggressive cost control, investment in high-margin segments, and further EOX platform expansion.

• Expect continued solid growth in modernization and service, with improving prospects for new installation sales.