TK Elevator’s Adjusted Operating Profit Rises 10% to €1.72 Billion
Key Facts
TK Elevator said adjusted earnings before interest, taxes, depreciation and amortization rose 10% to €1.72 billion in fiscal 2026, while the margin improved 100 basis points to 18.5%. The company said both figures were annual records in preliminary, unaudited results. It attributed the improvement to growth across all business segments, according to its statement. Total orders rose 8% to €9.7 billion, while revenue increased 4% to €9.3 billion. The figures show orders and sales growing alongside an expansion in operating profitability.
In the fourth quarter, orders rose 7% to €2.5 billion and revenue increased 3% to €2.5 billion compared with the same period a year earlier. Adjusted earnings for the quarter climbed 12% to €504 million, and the margin improved 140 basis points to 20.5%. Operating cash flow for the year also rose 4% to €1.29 billion. Services and modernization accounted for 66% of quarterly revenue, compared with 67% of revenue for the full year. The company said margins improved across all business segments, while the final quarter’s results reflected continued growth in adjusted earnings at a faster pace than revenue.
TK Elevator said demand for services and modernization supported results, while sales of new elevators remained strong in Europe and the Americas. It added that this performance offset weakness in the new-construction market in key Asian markets, including China and South Korea. Services revenue rose 5% to €4.6 billion for the year, with more than 1.4 million elevators and facilities covered by maintenance contracts. Modernization revenue also increased 7% to €1.6 billion. Commenting earlier on third-quarter and first-nine-month results, the company’s chief executive said it “is benefiting from structural growth opportunities through its strategic focus on services and modernization.”
Services and modernization together accounted for 67% of annual revenue, the company said, while their share was 66% in the fourth quarter. The company links its results growth to increased demand for these activities, alongside productivity improvements, cost management and capital efficiency. Its maintenance base of more than 1.4 million facilities offers a measure of the scale of its services business, which generated revenue of €4.6 billion. By contrast, new-construction activity remained weak in China and South Korea, according to the company’s statement. But growth in new sales in Europe and the Americas offset that weakness during the year.
The results come as TK Elevator’s planned merger with Kone awaits completion of regulatory reviews. The companies announced the plan on April 29, 2026, valuing the target’s enterprise value at about €29.4 billion and the combined group’s illustrative annual sales at about €20.5 billion before deal synergies. TK Elevator said the deal is expected to close in the second quarter of 2027 at the earliest, and that the regulatory review is proceeding on schedule. The companies are targeting expected annual synergies of €700 million after accounting for any potential regulatory conditions. In the U.K., the Competition and Markets Authority was still gathering views on the deal on September 22, 2026, and had not begun its formal Phase 1 investigation.
In Germany, the Ifo business climate index rose to 90.2 points in October from 89.9 points in September. The institute said improved expectations drove the increase, while companies assessed current conditions as slightly worse. The Ifo reading is separate from TK Elevator’s results, whose development the company attributed to operational factors within its business. Germany’s consumer climate index is scheduled to be published on October 28, 2026, at 08:00 Central European Time. The release is among Germany’s upcoming economic calendar events following the company’s preliminary results announcement.