Kone shares jump on strong Q1 order intake beat, guidance signals uncertainty

Published 30/04/2025, 10:58
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Investing.com -- KONE (HE:KNEBV) delivered a solid first-quarter order beat, though the rest of the results were broadly in line or slightly below expectations.

Shares in the Finnish elevator maker jumped more than 6% in Helsinki.

The company reported orders of €2.38 billion, up 5.1% year-on-year on a comparable currency basis, well ahead of the 2.1% growth expected by analysts.

Sales came in at €2.67 billion, and adjusted EBIT reached €280 million—both in line with consensus estimates.

Comparable sales rose 2.8% from the same period last year, with notable variation across segments. New Building Solutions (NBS) declined 10.7%, while Services grew 8.5% and Modernization jumped 19.8%.

Regionally, sales grew 7.1% in the Americas, 8.5% in Europe, and 6.7% in Asia-Pacific, Middle East and Africa (APMEA), while China saw a sharp 13.9% drop.

The adjusted EBIT margin stood at 10.5%, up 30 basis points year-on-year and matching consensus. Profitability was supported by a favorable mix, though this was partly offset by weaker margins in China and seasonal cost absorption.

Kone also refined its 2025 guidance. It now expects comparable currency sales growth of 1% to 6%, compared to earlier expectations for slight growth.

The adjusted EBIT margin is forecast between 11.8% and 12.4%, aligning with the 12.2% market consensus. The company said that tariffs are expected to have only a limited effect on results.

“Guidance is specified, but remains quite broad, reflecting uncertainty; consensus is around the midpoint,” RBC Capital Markets analysts said in a note.

The brokerage’s view on Kone remains “neutral overall,” with order intake seen as “the main positive” from the print.

“The broad guidance range brackets consensus, though [it] does reflect the scale of potential downside that we feel consensus has generally been overlooking,” the analysts noted.

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