KONE (KNEBV) Q2 2025 earnings summary

Executive summary

• Service and Modernization segments delivered robust growth and margin expansion, offsetting declines in New Building Solutions, especially in China.

• Achieved 12th consecutive quarter of margin expansion, with profitability and cash flow improving due to strategic execution and operational excellence.

• Service became the largest business segment, with modernization sales growing nearly 20% year-over-year.

• Recognized for sustainability, ranking among Europe’s most sustainable companies and listed on the CDP Supplier Engagement A-list.

• Order book declined 6.7% year-over-year but remains strong at EUR 8,699.4 million.

Financial highlights

• Sales increased 4.9% at comparable currencies in Q2 2025, reaching EUR 2,850.1 million; H1 2025 sales grew 2.9% to EUR 5,522.4 million.

• Adjusted EBIT margin improved to 12.2% in Q2 2025 and 11.3% in H1 2025.

• Operating cash flow rose to EUR 364.4 million in Q2 and EUR 851.1 million in H1 2025.

• Basic EPS grew 5.8% to EUR 0.53 in Q2 2025; net income for H1 2025 was EUR 492.2 million, up 5.4% year-over-year.

• Interest-bearing net debt at EUR -300.4 million, indicating a net cash position.

Outlook and guidance

• Sales expected to grow 2–5% at comparable exchange rates in 2025; adjusted EBIT margin guidance at 11.8–12.4%.

• Negative FX impact on adjusted EBIT estimated at EUR 50 million if current rates persist.

• Service and Modernization to drive growth; New Building Solutions in China remains a headwind.

• Modernization markets expected to grow in all regions; Service markets to grow clearly in APMEA and slightly elsewhere.

• New Building Solutions market in North America expected to be stable; China remains challenging, while growth is anticipated in Europe, Asia-Pacific, Middle East, and Africa.