KONE Oyj (KNYJF) Q1 2025 Earnings Call Transcript

2025-04-30 08:17:19 ET

KONE Oyj. (KNYJF)

Q1 2025 Earnings Conference Call

April 30, 2025, 03:30 AM ET

Company Participants

Natalia Valtasaari - Head, IR

Philippe Delorme - President & CEO

Ilkka Hara - CFO

Conference Call Participants

John Kim - Deutsche Bank

Michael Harleaux - Morgan Stanley

Daniela Costa - Goldman Sachs

Vivek Midha - Citi

Benjamin Heelan - Bank of America

Delphine Brault - ODDO

Vlad Sergievskii - Barclays

Rizk Maidi - Jefferies

Mikael Doepel - Nordea

Presentation

Natalia Valtasaari

Good morning, and welcome to KONE's First Quarter Results Webcast. My name is Natalia Valtasaari. I'm Head of Investor Relations here at KONE, and I'm very pleased to be joined by Philippe Delorme.

Philippe Delorme

Good morning.

Natalia Valtasaari

Our CEO; and Ilkka Hara, our CFO. So as usual, Philippe will start by giving you an overview of the key developments in the quarter, focusing on business highlights, financials and strategy execution. And then Ilka will take over, talk you through what we're seeing in the market, a bit more detail on the financials and our outlook for this year. And then we'll move on to your questions. [Operator Instructions]. But with that, Philippe, please.

Philippe Delorme

Thank you, Natalia, and good morning, everyone. I'm glad to be here today presenting our results for the first quarter of 2025. Let me start by saying that we had a very good start of the year, both in terms of financial performance and strategy execution, and of course, the things come together. We delivered strong growth again in both service and modernization. Modernization, in particular, had an outstanding quarter with both orders and sales growing by nearly 20%.

From a geographical perspective, we saw good momentum in the Americas, Europe and Asia Pacific, Middle East and Africa. In China, orders declined by approximately 15%. New building market conditions remains very difficult there, and -- but we did see some signs that activity could start to bottom out towards the end of the year.

As you know, profitable growth is at the top of our agenda, so I'm pleased to share that Q1 marked the 9th consecutive quarter of margin expansion. And last but certainly not the least, we continue to steadily execute on our strategy rise and I will share a few examples of recent developments a bit later on....

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