Konecranes Oyj - Financial Statement Release

Konecranes Plc's Financial statement release 2024: Q4 - A strong end to an excellent year

KONECRANES PLC FINANCIAL STATEMENT RELEASE 2024 FEBRUARY 7, 2025 8:30 AM EET

Konecranes Plc's Financial statement release 2024: Q4 - A strong end to an
excellent year

This release is a summary of Konecranes Plc's Financial statement release 2024.
The complete report is attached to this release in pdf format and is also
available on Konecranes' website at www.konecranes.com.

The figures presented in this report are unaudited. Figures in brackets, unless
otherwise stated, refer to the same period a year earlier.

Konecranes has made changes in reporting Industrial Equipment's order intake and
net sales. The change also impacts Industrial Equipment's profitability. The
previous year's figures presented in this report have been restated and are
fully comparable with the current year figures.

FOURTH QUARTER HIGHLIGHTS

- Order intake EUR 1,166.5 million (926.0), +26.0 percent (+25.9 percent on a
comparable currency basis), order intake increased in Service, Industrial
Equipment and Port Solutions

- Service annual agreement base value EUR 342.5 million (318.3), +7.6 percent
(+6.3 percent on a comparable currency basis)

- Order book EUR 2,888.4 million (3,040.8) at the end of December, -5.0 percent
(-6.1 percent on a comparable currency basis)

- Sales EUR 1,212.5 million (1,148.9), +5.5 percent (+5.4 percent on a
comparable currency basis), sales increased in all segments

- Comparable EBITA margin 13.2 percent (11.7) and comparable EBITA EUR 159.5
million (133.8); the increase in the comparable EBITA margin was mainly driven
by higher volumes and pricing, as well as good strategy execution.

- Operating profit EUR 146.4 million (121.6), 12.1 percent of sales (10.6)

- Earnings per share (diluted) EUR 1.36 (1.21)

- Free cash flow EUR 169.9 million (166.8)

FULL YEAR 2024 HIGHLIGHTS

- Order intake EUR 3,999.6 million (4,161.4), -3.9 percent (-3.6 percent on a
comparable currency basis)

- Sales EUR 4,227.0 million (3,966.3), +6.6 percent (+6.9 percent on a
comparable currency basis)

- Comparable EBITA margin 13.1 percent (11.4) and comparable EBITA EUR 551.6
million (450.7); the comparable EBITA margin increased in all three segments

- Operating profit EUR 511.4 million (402.5), 12.1 percent of sales (10.1),
items affecting comparability totaled EUR 9.3 million (17.2), mainly comprising
of restructuring costs

- Earnings per share (diluted) EUR 4.63 (3.46)

- Free cash flow EUR 427.2 million (511.4)

- Net debt EUR 183.5 million (365.8) and gearing 9.9 percent (22.9)

- The Board of Directors proposes a dividend of EUR 1.65 (1.35) per share for
2024

DEMAND OUTLOOK

Our demand environment within industrial customer segments has remained good and
continues on a healthy level.

Global container throughput continues on a high level, and long-term prospects
related to global container handling remain good overall.

FINANCIAL GUIDANCE

Konecranes expects net sales to remain approximately on the same level in 2025
compared to 2024. Konecranes expects the full-year 2025 comparable EBITA margin
to remain approximately on the same level or to improve from 2024.

KEY FIGURES

+----------------------+-------+-------+--------+-------+-------+--------+
|                      | 10-12/| 10-12/|Change %| 1-12/ | 1-12/ |Change %|
|                      |2024   |2023   |        |2024   |2023   |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Orders received, MEUR |1,166.5|926.0  |26.0    |3,999.6|4,161.4|-3.9    |
+----------------------+-------+-------+--------+-------+-------+--------+
|Order book at end of  |       |       |        |2,888.4|3,040.8|-5.0    |
|period, MEUR          |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Sales total, MEUR     |1,212.5|1,148,9|5.5     |4,227.0|3,966.3|6.6     |
+----------------------+-------+-------+--------+-------+-------+--------+
|Comparable EBITDA,    |183.1  |154.9  |18.2    |641.7  |535.0  |19.9    |
|MEUR 1                |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Comparable EBITDA, % 1|15.1%  |13.5%  |        |15.2%  |13.5%  |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Comparable EBITA, MEUR|159.5  |133.8  |19.1    |551.6  |450.7  |22.4    |
|1                     |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Comparable EBITA, % 1 |13.2%  |11.7%  |        |13.1%  |11.4%  |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Comparable operating  |151.5  |125.8  |20.4    |520.7  |419.7  |24.1    |
|profit, MEUR 1        |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Comparable operating  |12.5%  |11.0%  |        |12.3%  |10.6%  |        |
|margin, % 1           |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Operating profit, MEUR|146.4  |121.6  |20.4    |511.4  |402.5  |27.1    |
+----------------------+-------+-------+--------+-------+-------+--------+
|Operating margin, %   |12.1%  |10.6%  |        |12.1%  |10.1%  |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Profit before taxes,  |139.4  |124.1  |12.3    |485.3  |367.6  |32.0    |
|MEUR                  |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Net profit for the    |108.3  |96.4   |12.3    |368.4  |275.6  |33.7    |
|period, MEUR          |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Earnings per share,   |1.37   |1.22   |12.3    |4.65   |3.48   |33.7    |
|basic, EUR            |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Earnings per share,   |1.36   |1.21   |12.7    |4.63   |3.46   |33.8    |
|diluted, EUR          |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Gearing, %            |       |       |        |9.9%   |22.9%  |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Net debt / Comparable |       |       |        |0.3    |0.7    |        |
|EBITDA 1              |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Return on capital     |       |       |        |20.3%  |16.4%  |        |
|employed, %           |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Comparable return on  |       |       |        |20.8%  |17.7%  |        |
|capital employed, % 2 |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Free cash flow, MEUR  |169.9  |166.8  |        |427.2  |511.4  |        |
+----------------------+-------+-------+--------+-------+-------+--------+
|Average number of     |       |       |        |16,656 |16,503 |0.9     |
|personnel during the  |       |       |        |       |       |        |
|period                |       |       |        |       |       |        |
+----------------------+-------+-------+--------+-------+-------+--------+

1) Excluding items affecting comparability, see also note 11 in the summary
financial statements

2) ROCE excluding items affecting comparability, see also note 11 in the summary
financial statements

CEO Anders Svensson:

Konecranes delivered an excellent performance in 2024. Our order intake remained
close to the previous year's level and improved towards the year-end. Sales and
comparable EBITA margin were both at an all-time high, and with our 2024
comparable EBITA margin of 13.1% we are well within our profitability target
range. We have worked hard to deliver what we have promised, and I would like to
thank the entire Konecranes team for their effort and commitment. Thanks to the
hard work, Konecranes is well-placed for the future.

Although macro indicators continued to signal weak market conditions in Q4, our
demand environment was good. Order intake increased 25.9% year-on-year in
comparable currencies, and we saw year-on-year order growth in all three
Business Segments. Orderbook grew sequentially and was a solid €2.9 billion at
the end of December.

Q4 has usually been our seasonally strongest delivery quarter, and this was the
case also in 2024. We booked all-time high quarterly sales, exceeding €1.2
billion, and an increase of 5.4% versus a year ago on a comparable currency
basis. Sales grew in all three Business Segments.

Our Q4 comparable EBITA margin improved year-on-year and was 13.2%, mainly
driven by higher volumes and pricing, as well as good strategy execution.
Konecranes also received an R&D grant related to the Zero4 program in Finland,
with a positive impact of approximately €3 million on the comparable EBITA.
Profitability improved year-on-year in all three Business Segments. Free cash
flow continued on an excellent level, €170 million, thanks to good deliveries.

In Service, order intake increased 3.5% year-on-year in comparable currencies.
Sales increased 3.7% year-on-year in comparable currencies. The comparable EBITA
margin improved year-on-year to 20.6%, mainly driven by pricing and higher
volumes. The agreement base value continued to grow and in comparable currencies
was 6.3% higher at the end of Q4 versus a year ago.

Industrial Equipment's external orders increased 27.7% year-on-year in
comparable currencies, mainly driven by a single large process crane order, as
well as good component orders. External sales increased by 6.6% year-on-year in
comparable currencies. Driven by volume growth and the R&D grant, the comparable
EBITA margin increased year-on-year to 9.7%.

In Port Solutions, order intake totaled €461 million, increasing 51.4% year-on
-year in comparable currencies. Port Solutions had an excellent delivery
quarter, and sales grew 6.2% year-on-year in comparable currencies. The
comparable EBITA margin improved year-on-year to 9.7%, mainly driven by pricing
and volume growth, as well as good strategy execution. Port Solutions' orderbook
grew sequentially and was nearly EUR 1.6 billion at the end of Q4.

Looking into 2025, we expect the demand environment within our industrial
customers to remain healthy despite the macro-concerns around us. Our sales
funnels are on a high level, and we keep receiving new sales opportunities. That
said, customer decision-making times remain longer for larger industrial
projects.

Regarding our port customers, container throughput continues to be on a high
level, and long-term prospects related to container handling remain good. Our
Port Solutions sales pipeline includes a good mix of projects of all sizes.
Quarterly order intake fluctuation is normal in the business. Despite the strong
order intake in Q4, the market environment has not significantly changed
compared to the previous quarters.

We have also given financial guidance for 2025. We expect our net sales to
remain approximately on the same level in 2025 compared to 2024, and our
comparable EBITA margin to remain approximately on the same level or to improve
in 2025 compared to 2024.

Overall, 2024 was a record year for Konecranes. Our sales and comparable EBITA
margin were an all-time high, and we have reached our profitability target range
on a rolling twelve-month basis in all three Business Segments and on the Group
level well ahead of our original deadline. This is an important milestone but
does not mean that the work is over.

Our aim is to continue the positive development in 2025, and Konecranes has
every opportunity to deliver another strong year. Despite the macroeconomic
concerns around us, the demand for our services and solutions continues to be
good.

While I have taken the personal decision to leave Konecranes, I am fully
committed to continue in my role until July. Konecranes is in an excellent
position and has a bright future. The Board has already started the search for a
new President and CEO, and I know the company's dedicated personnel will
continue to work hard to make Konecranes the global leader in material handling
solutions.

ANALYST AND PRESS BRIEFING

A live international webcast and telephone conference for analysts, investors
and media will be arranged today at 11:30 a.m. EET. The event will be held in
English. The financial statement release will be presented by President and CEO
Anders Svensson and CFO Teo Ottola. Questions may be presented at the end of the
conference. The conference will be recorded, and an on-demand version of the
conference will be published on the company´s website later during the day.

The webcast can be watched through the following link:

https://konecranes.events.inderes.com/q4-2024

To ask questions, the telephone conference can be joined by registering through
the following link:

https://palvelu.flik.fi/teleconference/?id=50051643

Phone numbers and the conference ID to access the conference will be provided
after the registration. In case you would like to ask a question during the
conference, please dial *5 on your telephone keypad to enter the question queue.

Questions can also be presented in writing through the question form, while
watching the webcast.

NEXT REPORT

Konecranes Plc plans to publish its Interim report, January-March 2025 on April
24, 2025.

KONECRANES PLC
Kiira Fröberg
Vice President, Investor Relations

FURTHER INFORMATION
Kiira Fröberg,
Vice President, Investor Relations,

tel. +358 (0) 20 427 2050

IMPORTANT NOTICE

The information in this release contains forward-looking statements, which are
information on Konecranes' current expectations and projections relating to its
financial condition, results of operations, plans, objectives, future
performance and business. These statements may include, without limitation, any
statements preceded by, followed by or including words such as “target,”
“believe,” “expect,” “aim,” “intend,” “may,” “anticipate,” “estimate,” “plan,”
“project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other
words and terms of similar meaning or the negative thereof. Such forward-looking
statements involve known and unknown risks, uncertainties and other important
factors beyond Konecranes' control that could cause Konecranes' actual results,
performance or achievements to be materially different from the expected
results, performance or achievements expressed or implied by such forward
-looking statements. Such forward-looking statements are based on numerous
assumptions regarding Konecranes' present and future business strategies and the
environment in which it will operate in the future.

Konecranes is a global leader in material handling solutions, serving a broad
range of customers across multiple industries. We consistently set the industry
benchmark, from everyday improvements to the breakthroughs at moments that
matter most, because we know we can always find a safer, more productive and
sustainable way. That's why, with around 16,800 professionals in over 50
countries, Konecranes is trusted every day to lift, handle and move what the
world needs. In 2024, Group sales totalled EUR 4.2 billion. Konecranes shares
are listed on Nasdaq Helsinki (symbol: KCR).

DISTRIBUTION

Nasdaq Helsinki

Major media

www.konecranes.com

Attachments:

02073694.pdf