Finland's Kone Q3 sales rise 5.2%, orders up 7.2%
Finland's Kone Q3 sales rise 5.2%, orders up 7.2%
Overview
Finland elevator and escalator firm's Q3 sales rose 5.2% yr/yr
Adjusted EBIT for Q3 rose 8.3% yr/yr, margin expanded to 12.7%
Q3 orders received grew 7.2% yr/yr
Outlook
KONE expects 2026 sales to grow 4-6% at comparable exchange rates
Company sees 2026 adjusted EBIT margin at 12.5-12.9%
Company expects declining China market to weigh on profitability in 2026
Result Drivers
MODERNIZATION DEMAND - Co said modernization was the main driver of order growth, supported by strong activity in volume business
REGIONAL GROWTH - Asia-Pacific, Middle East and Africa drove growth, with Middle East showing strong performance
MARGIN EXPANSION FACTORS - Favorable business mix and fixed-cost leverage supported margin expansion, inflation managed effectively
Company press release: ID:nWkr2qpjl6
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales |
| EUR 2.91 bln |
|
Q3 Adjusted EBIT |
| EUR 369 mln |
|
Q3 Adjusted EBIT Margin |
| 12.70% |
|
Q3 EBIT |
| EUR 339 mln |
|
Q3 Orders |
| EUR 2.29 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the heavy electrical equipment peer group is "buy"
Wall Street's median 12-month price target for KONE Oyj is €60.00, about 6.3% above its October 27 closing price of €56.46
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 22 three months ago
Reuters Recommended Reads
Oct 27 - Germany's TK Elevator posts record annual profit ahead of combination with Kone
Oct 27 - Sweden's Alfa Laval Q3 sales rise on order intake
Oct 27 - Sweden's Assa Abloy slightly beats Q3 sales estimates on strength in Americas and EMEIA divisions
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)