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Finance

Germany's TK Elevator posts record annual profit ahead of combination with Kone

Published by Global Banking & Finance Review

Posted on October 27, 2026

1 min read

· Last updated: October 27, 2026

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TK Elevator Achieves Record Annual Profit Before Kone Merger

Financial Performance and Merger Progress

Record Financial Results for 2026

Oct 27 (Reuters) - TK Elevator reported record fourth-quarter and full-year 2026 results on Tuesday, marking a fourth straight year of double-digit profit growth as expansion in its higher-margin service and modernisation businesses boosted earnings.

Profit Growth and Revenue Breakdown

• FY adjusted EBITDA rose 10% to €1.72 billion ($1.92 billion), while margin improved 100 bps to 18.5%

• Q4 adjusted EBITDA was €504 million

• FY 2026 sales increased 4% to €9.3 billion, with service and modernization accounting for 67% of revenue

Upcoming Merger with Kone

The privately held German elevator maker is in the process of combining with Finnish rival Kone, with the deal expected to close in the second quarter of 2027 at the earliest.

Regulatory Review and Synergy Targets

• TKE said regulatory reviews of the planned Kone combination were progressing as expected, with the companies continuing to target about €700 million in annual synergies after completion

Currency Exchange Rate

($1 = 0.8961 euros)

(Reporting by Basile Day; Editing by Anil D'Silva)

Key Takeaways

  • TK Elevator achieved four consecutive years of double‑digit profit growth, with adjusted EBITDA margin reaching 18.5 % for FY 2026 as service and modernization accounted for 67 % of revenue (FY adj. EBITDA €1.72 bn; Q4 €504 m) (tkelevator.com).
  • Order intake and revenue continued to climb—Q4 orders up 7% to €2.5 bn, with modernization leading at 27% growth; full‑year service revenue hit €4.6 bn and modernization €1.6 bn, underpinning cash flow strength (tkelevator.com).
  • The planned merger with Finland’s KONE remains on track, with regulatory filings progressing in key jurisdictions (e.g., UK’s CMA on Phase 1) and expected to complete earliest in Q2 2027, unlocking targeted €700 million in annual synergies post‑close (tkelevator.com).

References

Frequently Asked Questions

What were TK Elevator's record profits for 2026?
TK Elevator's adjusted EBITDA rose 10% to €1.72 billion, with sales up 4% to €9.3 billion in the full year 2026.
What is the status of the TK Elevator and Kone combination?
The deal is progressing through regulatory reviews and is expected to close in the second quarter of 2027 at the earliest.
What drove TK Elevator’s profit growth?
Expansion in higher-margin service and modernization businesses boosted TK Elevator's earnings.
How much annual synergy is targeted from the Kone combination?
TK Elevator and Kone are targeting about €700 million in annual synergies after completion of the deal.
What percentage of 2026 revenue came from service and modernization?
Service and modernization accounted for 67% of TK Elevator’s revenue in 2026.

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