Q2 2026 Kone Corp Earnings Call Transcript
Key Points
- KONE Oyj (KNYJF) reported a strong acceleration in modernization, with growth exceeding 15%, highlighting success in capturing opportunities from aging building stock.
- The company achieved further margin expansion and strong cash generation, reflecting a disciplined execution and a quality business mix.
- Orders grew by almost 11% in the quarter, with three out of four regions delivering double-digit growth.
- KONE Oyj (KNYJF) increased connectivity in its maintenance portfolio to 44%, enhancing customer value and service capabilities.
- The planned combination with TKE is progressing well, with strong shareholder support and regulatory reviews advancing as planned.
- Order margins declined slightly year-on-year due to inflationary pressures, despite actions taken to address this.
- The demand for new building solutions in China remains weak, impacting overall market activity.
- Service growth was slower due to high comparison points in China and reduced M&A contributions in Europe.
- Inflationary pressures linked to geopolitical tensions, including elevated logistics costs, continue to pose challenges.
- The company faces ongoing risks from geopolitical developments, which could impact market resilience and growth.
Good morning, and welcome to KONE's second quarter results call. My name is Natalia Valtasari. I'm Head of Investor Relations here at KONE, and I'm very pleased to be joined here today by Philippe Delorn, our President and CEO, and by Ilka Hara, our CFO.
As usual, Philippe will start by talking through the highlights of the quarter in terms of financials, but especially our strategy execution. Ilka will then follow-up with some more details on markets and financials, and then Philippe will wrap up before we head into the Q&A session. And just as a reminder already at this point, please, in the Q&A, try to limit yourselves to one question, one follow-up, and, of course, you can rejoin the queue if you have anything further to ask.
But with that, Philippe, please.
Thank you, Natalia, and good morning, everyone. I'm very pleased to be here today to discuss our second-quarter
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