Kone Maintains Earnings Outlook Amid Heavy Acquisition Costs

The second quarter saw Kone navigate a dual reality: while the company faced significant costs related to its pending merger, its underlying business segments maintained momentum. Sales grew by 3.1% to 2.94 billion euros, pushing adjusted earnings before interest and tax to 369.9 million euros. Profitability improved slightly, with the adjusted EBIT margin climbing to 12.6% from 12.2% a year earlier.

Performance varied significantly by geography. Order intake rose 11% to 2.56 billion euros, comfortably beating analyst expectations of 2.43 billion euros. Growth in the Americas, Europe, and the Asia-Pacific regions successfully buffered the company against a clear decline in Greater China. Kone noted that intense competition and weak market conditions in the Chinese new building sector continue to suppress pricing, though markets elsewhere remain stable. Based on these results, Kone continues to project annual sales growth between 3% and 6%, with an adjusted EBIT margin target of 12.3% to 13.0%.