KONE Q1 Earnings Show Strong Growth in Key Metrics

KONE Corporation reports positive Q1 profits with net income rising to €215.3 million and EPS of €0.41. Orders and sales also show significant growth, indicating robust performance in the construction sector.

Date: 30-04-2025

AI Rating: 7

KONE Corporation's Performance Analysis KONE Corporation has reported a notable increase in key financial metrics in its first-quarter results, with net income rising to €215.3 million from €205.9 million. The basic earnings per share (EPS) also increased to €0.41 from €0.39, indicating a positive trend for shareholders. The growth in adjusted EBIT to €279.6 million from €262.4 million further suggests improved operational efficiency.

**Order and Sales Growth** KONE's orders received grew by 6.4% to €2.38 billion, which is a strong indicator of demand for their products and services. Adjusting for foreign currency fluctuations, orders grew by 5.1%, showcasing solid performance across markets despite currency volatility. Sales increased by 4.1% to €2.67 billion, with a comparable growth of 2.8% when excluding currency effects. This growth trajectory in sales and orders can be promising for sustaining the company's market position.

**Future Outlook** The guidance for an expected sales growth of 1-6% at comparable exchange rates in 2025, along with an adjusted EBIT margin target of 11.8%-12.4%, shows KONE's commitment to maintaining its profitability while anticipating challenges in growth rates. Previously, KONE had indicated a more conservative expectation for slightly increased sales, suggesting an optimistic shift in outlook.
Overall, KONE's performance reflects a solid balance of growing revenue, improving net income, and optimistic future guidance, positioning the company favorably within the construction and manufacturing sectors. This combination of strong past results and positive forecasts could bolster investor confidence in KONE shares, potentially leading to an upward trend in stock prices.

Stocks: OTCMKTS:KNYJF