Kone Oyj B (KNYJF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone. My name is Natalia Vazasari. I'm head of investor relations here at Kone. And I want to start by apologizing for the delay to start this webcast. We have some network issues here on our end. I would suggest that everyone who is only following on the webcast also dial in. The number should be visible to you. Just in case this is not smooth sailing going forward, which I very much hope it will be. So that's that. Let's get started. I'm very pleased to be joined today by our CEO, Philippe Delorme, and our CFO, Ilsa Hara. As you know, we published our Q1 results today, but clearly today's big news is our announcement that we plan to combine with TKE. Very exciting. And this will, of course, be the main focus of the webcast. Once you have heard from our speakers, we'll be opening the lines for Q&A. I expect an active session, so please limit yourself to one question, one follow-up, and then you're, of course, welcome to rejoin the queue. We'll address any further questions within the limits of time. So with that, please. Thank you, Natalia, and welcome, everyone. This is indeed an exciting day for Kone, and I'll come back shortly to why the combination with TK is so compelling. But let me first set the scene with a brief look at our first quarter performance. So we had a solid start of the year with in-line results and good progress in strategy execution. Two things stand out. First, sales grew by nearly 7%. Second, service and modernization increased to 67% of sales. This mix supported margin extension, but more importantly, underscores the resilience of our business, a key strength in the current geopolitical environment. Importantly, we continued to execute steadily on our strategy. And one key example is a continued increase in productivity of ...