Under the deal, Kone would pay the consortium that owns TK Elevator around €5 billion in cash and up to 270 million newly issued Kone shares.
KONE Oyj (KNYJY) Q4 2025 Earnings Call Transcript
KONE Oyj (OTCPK:KNYJY) Q3 2025 Earnings Call October 23, 2025 3:30 AM EDT Company Participants Natalia Valtasaari - Head of Investor Relations Philippe Delorme - President, CEO & Member of Executive Board Ilkka Hara - Executive VP, CFO & Member of Executive Board Conference Call Participants Andre Kukhnin - UBS Investment Bank, Research Division James Moore - Rothschild & Co Redburn, Research Division Daniela Costa - Goldman Sachs Group, Inc., Research Division John-B Kim - Deutsche Bank AG, Research Division Martin Flueckiger - Kepler Cheuvreux, Research Division Vladimir Sergievskiy - Barclays Bank PLC, Research Division Panu Laitinmaki - Danske Bank A/S, Research Division Benjamin Heelan - BofA Securities, Research Division Rizk Maidi - Jefferies LLC, Research Division Vivek Midha - Citigroup Inc., Research Division Presentation Natalia Valtasaari Head of Investor Relations Good morning, everyone, and welcome to KONE's Third Quarter Results Webcast. My name is Natalia Valtasaari.
KONE has reported stable long-term revenue growth, aided by global urbanization. The company's growth is accompanied by great capital returns. Service and modernization revenues continue to bolster KONE's growth outlook alongside continued market growth. China's housing market weakness has weighed on KONE in the past couple of years. An eventual market rebound creates considerable earnings rebound potential.
Here is how Kone Oyj Unsponsored ADR (KNYJY) and MSC Industrial (MSM) have performed compared to their sector so far this year.
Kone Oyj (KNYJY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
KONE trades in line with peers who have less China exposure, which continues to be a problematic market due to their real estate deleveraging. Otherwise, service and in particular modernisation revenue, which effectively is somewhere between new build and service activities, are doing well. China was expected to be weak, but NA also suffered as business in new builds was deferred amid tariff uncertainty, with timing effects to ding results.
Here is how Kone Oyj Unsponsored ADR (KNYJY) and Keyence Corporation (KYCCF) have performed compared to their sector so far this year.
Kone Oyj (KNYJY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Emerson Electric (EMR) or Kone Oyj Unsponsored ADR (KNYJY). But which of these two companies is the best option for those looking for undervalued stocks?
KONE's overexposure to the fragile Chinese property market and macroeconomic trends negatively impacts margins, justifying my "Hold" rating despite solid 3Q24 results. The company's valuation at €49/share is too high; I maintain a target of €42/share, considering the limited upside and premium valuation. KONE's service revenue growth is promising, but potential quality issues and competition from local Asian firms pose significant risks.
Kone Oyj (KNYJY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).