Q2 2025 Kone Oyj Earnings Call Transcript
Key Points
- KONE Oyj (KNYJF) reported a 12th consecutive quarter of margin expansion, showcasing strong financial performance.
- The company achieved nearly 20% sales growth in its Modernization segment, indicating robust demand and execution.
- Service business outside China developed well, with over 10% growth, highlighting the strength of KONE's service offerings.
- KONE's Rise strategy is progressing well, with significant advancements in digital connectivity and field productivity tools.
- The company is making strides in sustainability, with 60% of equipment deliveries now equipped with regenerative drives, aiding in Scope 3 emission reduction.
- Market conditions in China remain challenging, with continued pressure on pricing and margins in the New Building Solutions segment.
- Despite strong growth in Modernization, the high comparison point from the previous year resulted in lower order growth this quarter.
- The company faces a EUR50 million negative impact on EBIT due to unfavorable foreign exchange rates.
- Tariffs have increased business complexity in the US, impacting costs for imported goods and components.
- KONE's New Building Solutions sales in China declined by 5.2% due to low delivery volumes, affecting overall sales growth.
Morning and welcome to KONE's second-quarter results call. My name is Natalia Valtasaari, I'm Head of Investor Relations here at KONE, and very pleased to be joined today by our President and CEO, Philippe Delorme; and our CFO, Ilkka Hara.
So as usual, Philippe will start by talking us through the highlights of the quarter, where we are in terms of our strategy execution. Ilkka will then go through the market situation, the financials in a bit more depth, and then Philippe will summarize before we move into Q&A.
(Event Instructions) With that, Philippe?
Thank you, Natalia. And good morning, everyone. I'm very pleased to be presenting our second quarter results today. We have good news again to share this quarter with positive developments in both financial and strategic metrics, and I'm proud of the KONE team and what we have accomplished, especially when considering the global environment which, as you know,
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