Konecranes (KCR) Pre-Silent Call summary

Executive summary

• Key topics discussed included market environment, order book, margin development, margin improvement drivers, capital allocation, U.S. port cranes market, potential U.S. tariffs, and M&A opportunities.

• No major changes in messaging or financial guidance compared to the previous quarter; this call served as a summary and Q&A session.

• Investor engagement included roadshows, conferences, and a site visit at Georgia Ports Authority in Savannah.

Trading performance and revenue trends

• Demand in the industrial customer segment is expected to remain healthy, with Americas strong, EMEA mixed, and Asia-Pacific showing room for improvement.

• China remains at a lower demand level with tight competition.

• Port customers' long-term prospects for global container handling remain positive.

• Group order book is down year-on-year, with Port Solutions accounting for a significant portion of the decline, but the reduction mainly affects 2025 and beyond.

Profitability and margins

• Net sales are expected to increase and comparable EBITDA margin is expected to improve in 2024 versus 2023.

• Optimization program benefits continue, with EUR 10+ million realized in 2023 and 2024, and further improvements targeted for 2025.

• Modularization and new product platforms are embedded in ongoing optimization efforts, with further margin benefits expected, especially in process cranes.

• Q4 product mix is typically weaker compared to other quarters, impacting margins.