TK Elevator Trading Update; Q4 and Full-Year FY 2026 Preliminary Results: Sustained Momentum Delivered Record Performance

Fourth Consecutive Year of Double-Digit Profit Growth, Driven by Continued expansion in Service and Modernization, Disciplined Capital Deployment and Cost Management

Highlights Q4 FY 2026:

• Order intake up 7% to €2.5 billion; led by 27% growth in Modernization.
• Sales increased 3% to €2.5 billion.
• Service and Modernization comprised 66% of Q4 sales.
• Adjusted EBITDA +12% to €504 million; margin +140 bps to 20.5%; new quarterly records.
• Operating cashflow +8%* to €473 million; driven by higher profit and disciplined capital management; strongest quarter ever as TKE.
  
  

Highlights Full-Year FY 2026:

• Order intake up 8% to €9.7 billion; growth across all business lines and in every region.
• Sales increased 4% to €9.3 billion.
• Service and Modernization comprised 67% of full-year sales.
• Adjusted EBITDA +10% to €1.72 billion; margin +100 bps to 18.5%; improvement across all business lines, led by growth in Service and productivity gains; full-year records.
• Operating cashflow +4%* to €1.29 billion; record level for full-year.
  
  

TK Elevator CEO Uday Yadav said:

"Another exceptional performance in the final quarter rounded off the fourth strong year in TKE's successful transformation journey and the repositioning of the company.

Our customer focus, battle-tested team strength, relentless high-performance drive and mindset of continuous improvement continued to underpin these results and have created a platform for future success.

This strong performance, despite a mixed macro-environment, was driven by broad-based growth across TKE. Our focus on Service and Modernization continues to capture the structural growth opportunities in the market, while EOX-led New Installation growth in Europe and the Americas offset weakness in new construction in key Asian markets.

Service and Modernization-led sales growth, combined with ongoing efficiency gains, delivered 12% Adjusted EBITDA growth in the fourth quarter and lifted margins to 20.5%. Our consistent record of sales and margin expansion is a clear testament to the strength of our business model and the momentum we have generated."

Düsseldorf (Germany), October 27, 2026 - TK Elevator (TKE), a global leader in vertical transportation and urban mobility solutions, today reports preliminary unaudited financial results for the fourth quarter (Q4) and full financial year (FY) 2026, the period ended 30 September 2026. Service and Modernization-led sales growth, combined with operational excellence across all regions, drove Adjusted EBITDA and margin to new Q4 and full-year records.

FY 2026 marked the fourth consecutive year of double-digit profit growth, and the 14th consecutive quarter of combined sales and margin improvement. Profit growth and margin strength in the quarter and full-year were led by the Americas, which together with strong profitable growth in Europe more than offset continued weakness in the China and Korea new construction sectors. The strategic shift in sales mix, the high-grading of the service portfolio, targeted investments in growth and restructuring, and consistent productivity gains, are continuously translating into sustainable and stronger results.

Driving Service and Modernization

Service and Modernization sales continued their structural growth, with both business lines delivering positive year-on-year improvements in every single quarter for more than five years. Service sales increased 5% to new quarterly and full-year highs of €1.2 billion and €4.6 billion, respectively, driven by growth across all regions. This reflects the continued growth of the service portfolio to more than 1.4 million units under maintenance, as well as further increased value per service unit, supported by strong repair sales across all regions. Modernization sales also increased 7% to new quarterly and full-year highs of more than €0.4 billion and €1.6 billion, respectively.

Winning in the New Installation market

In a tough and competitive macro-economic environment, New Installation sales remained strong at €0.8 billion in Q4, and €3.1 billion in the full-year, respectively. Challenging new construction sectors in China and South Korea were offset by EOX-led growth in Europe and the Americas.

Performing Today, Building Tomorrow

Alongside this strong operational and financial performance, TKE continues to invest in future growth and value creation, with further expansion of EOX capabilities and market coverage in New Installation and Modernization across Europe and the Americas.

At the same time, the company is in the early stages of benefiting from AI deployment around the world. Scaling its AI-enabled service delivery model, initially launched in North America, is a major focus for TKE with benefits just starting to accrue.

In Asia-Pacific, TKE is investing in selected restructuring to adjust to the weak new construction sectors in China and Korea, while pursuing attractive structural growth opportunities in Modernization and Service and expanding its presence in high-growth markets such as India and the Middle East.

Planned Combination with KONE

On April 29, 2026, TKE and KONE Corporation announced plans for a transformative business combination to create one of the world's leading elevator and escalator companies. The regulatory review process for that combination is progressing as planned, with filings submitted or underway in all key jurisdictions and TKE and KONE Corporation are jointly working on measures to meet the possible remedy requirements of regulators. On that basis and as anticipated at the time of announcement, closing is expected in Q2 2027, at the earliest, and the parties remain confident in achieving the estimated €700 million of annual synergies post potential remedy requirements.

Uday Yadav, CEO of TK Elevator, added: "2026 was another landmark year in TKE's transformation. Working together, our teams around the world have again achieved record results, demonstrating the progress we have made over the last four years and the strong foundation we have built for the next chapter, and our industry-revitalizing combination with KONE."

PRESS IMAGES
can be downloaded here (Credits: TK Elevator).

PRESS CONTACT
Alastair Hetherington, [email protected], +49 153 346 05894
Amy Flécher, [email protected], +49 162 616 9953
TK Elevator GmbH, tkelevator.com

ABOUT TK ELEVATOR
TK Elevator (TKE) is a global leader in vertical transportation and urban mobility. We provide engineering that keeps the world moving, including design, installation, and maintenance of elevators, escalators, walkways, lifts, passenger boarding bridges, stairlifts, platform lifts and home elevators - including multi-brand modernization and service any place, any time. With TKE's AI and digital solutions there are no longer any limits to urban mobility. TKE became independent following its separation from the thyssenkrupp group in 2020. The company achieved sales of €9.3 billion in fiscal year 2026. With around 50,000 employees, 25,000 service technicians and over 1,000 support centers globally, we are moved by what moves people. TKE - Move Beyond.

<sub>Growth rates and comments regarding orders, sales, Adjusted EBITDA and OCF are based on FX-adjusted developments and comparison with Q4 and 12M FY 2025, respectively. All trading update figures are preliminary/unaudited.
* Before cash interest & taxes</sub>