Half-year financial report of KONE Corporation for January-June 2026
KONE Corporation, stock exchange release, July 22, 2026 at 8.30 a.m. EEST
Half-year financial report of KONE Corporation for January–June 2026
Strong growth in orders, continued margin expansion
April–June 2026
- Orders received grew by 10.6% to EUR 2,562.3 (4–6/2025: 2,316.2) million. At comparable exchange rates, orders grew by 10.9%.
- Sales grew by 3.1% to EUR 2,937.6 (2,850.1) million. At comparable exchange rates, sales grew by 3.4%.
- Operating income (EBIT) was EUR 322.2 (338.0) million or 11.0% (11.9%) of sales. The adjusted EBIT was EUR 369.9 (347.2) million or 12.6% (12.2%) of sales.*
- Cash flow from operations (before financing items and taxes) was EUR 436.4 (364.4) million.
January–June 2026
- Orders received grew by 4.2% to EUR 4,893.7 (1–6/2025: 4,694.6) million. At comparable exchange rates, orders grew by 7.4%.
- Sales grew by 2.2% to EUR 5,645.9 (5,522.4) million. At comparable exchange rates, sales grew by 5.0%.
- Operating income (EBIT) was EUR 605.2 (614.7) million or 10.7% (11.1%) of sales. The adjusted EBIT was EUR 663.5 (626.7) million or 11.8% (11.3%) of sales.*
- Cash flow from operations (before financing items and taxes) was EUR 936.5 (851.1) million.
Business outlook for 2026 (unchanged)
KONE expects its sales to grow 3-6% at comparable exchange rates in 2026 and its adjusted EBIT margin to be in the range of 12.3-13.0%. Assuming that foreign exchange rates remain at the July 2026 level, the impact of foreign exchange rates on the adjusted EBIT margin would be limited.
Key figures
| 4–6/2026 | 4–6/2025 | Change | 1–6/2026 | 1–6/2025 | Change | 1–12/2025 | ||
| Orders received | MEUR | 2,562.3 | 2,316.2 | 10.6% | 4,893.7 | 4,694.6 | 4.2% | 9,087.4 |
| Order book ** | MEUR | 9,630.8 | 8,577.3 | 12.3% | 8,693.0 | |||
| Sales | MEUR | 2,937.6 | 2,850.1 | 3.1% | 5,645.9 | 5,522.4 | 2.2% | 11,245.2 |
| Operating income | MEUR | 322.2 | 338.0 | -4.7% | 605.2 | 614.7 | -1.5% | 1,336.2 |
| Operating income margin | % | 11.0 | 11.9 | 10.7 | 11.1 | 11.9 | ||
| Adjusted EBIT * | MEUR | 369.9 | 347.2 | 6.6% | 663.5 | 626.7 | 5.9% | 1,369.3 |
| Adjusted EBIT margin * | % | 12.6 | 12.2 | 11.8 | 11.3 | 12.2 | ||
| Income before tax | MEUR | 315.8 | 359.6 | -12.2% | 594.4 | 639.3 | -7.0% | 1,326.8 |
| Net income | MEUR | 240.2 | 276.9 | -13.3% | 454.7 | 492.2 | -7.6% | 991.9 |
| Basic earnings per share | EUR | 0.46 | 0.53 | -13.1% | 0.87 | 0.94 | -7.5% | 1.89 |
| Cash flow from operations (before financing items and taxes) | MEUR | 436.4 | 364.4 | 936.5 | 851.1 | 1,761.3 | ||
| Interest-bearing net debt *** | MEUR | -245.5 | -300.4 | -699.8 | ||||
| Equity ratio | % | 33.4 | 34.3 | 39.9 | ||||
| Return on equity | % | 35.3 | 38.1 | 34.7 | ||||
| Net working capital (including financing items and taxes) *** | MEUR | -877.0 | -842.8 | -797.6 | ||||
| Gearing | % | -10.5 | -13.2 | -24.8 |
* KONE presents adjusted EBIT as an alternative performance measure to enhance comparability of business performance between reporting periods. In January–June 2026, items affecting comparability amounted to EUR 58.3 million consisting of EUR 25.8 million costs relating to the TKE transaction as well as costs related to restructuring and the resettlement of a defined benefit pension plan. In the comparison period, items affecting comparability amounted to EUR 12.0 million consisting mainly of costs related to the separation of the KONE Door Business under its own legal and operative structure.
** Comparison period 2025 has been restated. More information is available in the Other notes section of the Interim report.
*** Interest-bearing net debt includes non-current derivative liabilities of EUR 79.7 million and non-current deferred assets of EUR 31.1 million, both related to the TKE transaction. Other derivatives arising from operational activities, presented within current assets and liabilities, are included in net working capital.
Philippe Delorme, President and CEO:
“We delivered a strong second quarter, highlighted by order growth of more than 10%. Particularly encouraging was the re-acceleration of modernization, with double-digit growth across all regions. Sales development was solid, and our adjusted EBIT margin improved by 40 basis points, demonstrating continued progress toward our mid-term targets. At the same time, we have taken proactive actions to safeguard future performance amid rising inflationary pressures. I would like to take this opportunity to thank our employees for their strong engagement and consistent execution.
The defining event of the quarter was the announcement of our planned combination with TKE to create a world-class company in the elevator and escalator industry. This represents a unique opportunity to bring together two exceptional and highly complementary businesses, creating substantial value for our customers, our people and our shareholders alike. Since the announcement, we have reached the important milestone of securing shareholder approvals, while the regulatory review process is progressing as planned, with filings submitted or underway in all key jurisdictions. We have also begun working together on integration planning, and the highly constructive collaboration has strengthened our conviction in the significant value creation potential of the transaction.
While preparing for this combination, our focus remains firmly on delivering our objectives as a standalone company. We continue to make excellent progress in executing our strategy. In Modernization, our emphasis on maximizing customer value through faster delivery, minimal disruption, and extended asset lifecycles is producing clear results, reflected in sustained strong growth and increasing customer loyalty. In Service, connectivity continues to expand rapidly, and we are simultaneously deploying field productivity tools across key geographies. Together, these initiatives drive tangible customer benefits through greater transparency, predictive insights, and faster response times.
Despite ongoing geopolitical uncertainty, we are well positioned to capture the opportunities in our markets. By staying focused on disciplined strategy execution, fostering a high-performance culture, and creating value for our customers every day, I am confident in our ability to continue delivering sustainable long-term success.”
April–June 2026
The global New Building Solutions market declined slightly during the second quarter due to the continued weak market conditions in China. The market in North America declined slightly from a high comparison point. In Europe, the market grew slightly. In Asia-Pacific, Middle East and Africa, the market grew significantly, driven in particular by healthy momentum in the Middle East, where activity was strong despite the geopolitical tensions.
Service and Modernization markets offered the best growth opportunities. Both markets developed positively with growth across all regions.
Intense competition continued to impact the New Building Solutions pricing environment in China, while elsewhere pricing was more stable. In the Service and Modernization markets, the pricing environment was more favorable.
January–June 2026
The demand environment was favorable in many areas in the global New Building Solutions market during the first half of 2026. The market in North America grew clearly. In Europe, the market grew slightly, mainly driven by the residential segment. In Asia-Pacific, Middle East and Africa, activity grew significantly, supported by strong growth in India, Australia and in the Middle East. In China, activity declined significantly as construction activity remained weak.
The Service market developed positively with growth across all regions. Modernization growth was strong globally, supported by the aging of equipment and the demand for improved energy efficiency.
Intense competition impacted the New Building Solutions pricing environment in China, while elsewhere pricing was more stable. In the Service and Modernization markets, the pricing environment was more favorable.
Market outlook 2026 (unchanged)
Activity in the New Building Solutions market is expected to vary regionally in 2026. The market is expected to grow slightly in North America and in Europe. In Asia-Pacific, Middle East and Africa, activity is expected to grow clearly. In China, the market is expected to decline clearly.
Modernization markets are expected to grow in all regions supported by an aging equipment base as well as the focus on sustainability and adaptability of buildings. Service markets are expected to grow clearly in Asia-Pacific, Middle East and Africa and grow slightly in other regions.
Business outlook 2026 (unchanged)
KONE expects its sales to grow 3-6% at comparable exchange rates in 2026 and its adjusted EBIT margin to be in the range of 12.3-13.0%. Assuming that foreign exchange rates remain at the July 2026 level, the impact of foreign exchange rates on the adjusted EBIT margin would be limited.
Key drivers for sales growth are the positive outlook for Service and Modernization and the solid order book. The declining New Building Solutions market in China is a headwind.
The key drivers of EBIT margin expansion are sales growth in Service and Modernization and increased contribution from performance initiatives. The challenging New Building Solutions market in China and continued wage inflation are expected to impact profitability negatively. Geopolitical tensions are adding to inflationary pressure.
Press and analyst events
A Microsoft Teams call for the press, conducted in English, will be held on Wednesday, July 22, 2026 at 09:00 a.m. EEST.
A webcast for analysts, conducted in English, will begin at 10:30 a.m. EEST and will be available on kone.events.inderes.com/2026-q2. An on-demand version of the webcast will be available on www.kone.com/global/en/investors later the same day. Participants wishing to ask questions may join the telephone conference by registering through the following link: events.inderes.com/kone/2026-q2/dial-in
For further information, please contact:
Natalia Valtasaari, Vice President, Investor Relations, KONE Corporation, tel. +358 204 75 4705
Sender:
KONE Corporation
Philippe Delorme
President and CEO
Ilkka Hara
CFO
About KONE
At KONE, our purpose is to shape the future of cities. As a global leader in the elevator and escalator industry, we move two billion people every day, making their journeys safe, convenient, and reliable with smart and sustainable People Flow®. In 2025, KONE had annual sales of EUR 11.2 billion, and at the end of the year over 60,000 employees in close to 70 countries. KONE class B shares are listed on the Nasdaq Helsinki Ltd. in Finland.