Kone sales rise 5.2%, orders jump 7.2% in third quarter
Key Facts
Kone reported on October 28, 2026, that third-quarter sales rose 5.2% to 2,906.0 million euros, while orders received increased 7.2% to 2,292.9 million euros, combining business growth with improved profitability despite continued weakness in China’s new building market. Sales growth was 3.8% excluding the effect of foreign exchange rate changes, compared with sales of 2,762.0 million euros in the same period a year earlier. Orders received also rose 5.5% at comparable exchange rates, from 2,139.5 million euros a year earlier. Basic earnings per share were 0.52 euros, compared with 0.43 euros in the third quarter of 2025. Sales fell short of Vara Research’s consensus of 2,951 million euros by 1.5%, according to data cited by Finwire via MarketScreener.
Adjusted operating profit rose to 369.0 million euros from 340.7 million euros a year earlier, while its margin increased to 12.7% from 12.3%, according to the company’s announcement. In the first nine months of 2026, sales increased 3.2% to 8,552.0 million euros, compared with 8,284.4 million euros in the same period a year earlier. Sales growth over that period was 4.6% at comparable exchange rates. Adjusted operating profit for the nine months reached 1,032.5 million euros, against 967.4 million euros, and its margin rose to 12.1% from 11.7%. But cash flow from operations before financing items and taxes fell in the quarter to 347.9 million euros from 444.4 million euros a year earlier.
The company raised its 2026 sales growth outlook to a range of 4–6% at comparable exchange rates, from a previous range of 3–6%, lifting the lower end of its forecast by one percentage point. At the same time, it narrowed its expected adjusted operating profit margin range to 12.5–12.9%, compared with a previous forecast of between 12.3% and 13.0%. Kone said the positive outlook for its service and modernization businesses and its solid order book support sales growth. It added that the service and modernization markets offered the best growth opportunities, with growth recorded in all regions. The order book stood at 9,804.6 million euros at the end of September, up 12.5% from 8,717.7 million euros a year earlier, strengthening the order base underpinning the company’s outlook.
New building solutions markets performed unevenly across regions in the third quarter, with activity declining slightly in North America, remaining stable in Europe, and growing clearly in Asia-Pacific, the Middle East and Africa, Kone said. The market remained weak in China, where intense competition continued to put pressure on pricing for new building solutions. In other markets, pricing was more stable, while the company described pricing conditions in the service and modernization businesses as more favorable. This divergence means the strength of services, modernization and accumulated orders comes while new building operations still face obstacles in China. The company regarded the downturn in that market as a drag on sales growth, offset by support from the order book and prospects for its service and modernization businesses.
Regarding the merger with TK Elevator, Kone said the process was progressing according to plan and that it had received its first regulatory approvals during the quarter. It said integration planning was advancing, with the day-one plans being refined and a roadmap being developed to realize the synergies underpinning the rationale for the deal. The company said its order book provides good support for future growth and that it continues to pursue its plan to reach a medium-term target range of 13% to 14% for adjusted operating profit margin. Kone is scheduled to publish its 2026 financial statements on January 29, 2027. The date follows the update to its full-year outlook and the release of its nine-month results, while developments in regional markets and progress on the TK Elevator deal remain among the factors to watch in assessing the company’s performance.