KONE Oyj Class B

KNEBV: XHEL (FIN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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Kone Earnings: High-Margin Service and Modernization Sales Offset Weakness in China

Grant Slade

Jan 30, 2025

Wide-moat Kone reported strong fourth-quarter results, with organic revenue growth of 5.1%, ahead of FactSet consensus, and order growth of 3.4% year on year. Weak Chinese demand for new equipment continued to weigh on group-level metrics, as orders in the period declined roughly 10%. Service and modernization sales remained the bright spot for Kone, growing 11.2% and 13.6%, respectively. Kone’s initial outlook for 2025 broadly indicates a continuation of trends seen in 2024, albeit with no imminent recovery in Chinese new equipment orders. With no material changes expected to our forecasts, we maintain our EUR 50 fair value estimate.

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KONE Oyj Class B

Kone Earnings: High-Margin Service and Modernization Sales Offset Weakness in China

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