Konecranes Plc Ord

Hello, all, and welcome to follow Conecranes' Q4 2025 results webcast. My name is Linda Häkkilä. I'm the VP Investor Relations here at Conecranes. And with me today as our main speakers, we have our CEO, Marko Tulokas, and our CFO, Teo Ottola. Before we proceed, I would like to remind you about the disclaimer, as we might be making forward-looking statements. As per usual, we will first start with presentations, both from our CEO and CFO, and after that, we will start the Q&A session. We are happy to answer your questions through the conference call lines. But now, without any further comments, I would like to hand over to our CEO.

Thank you, Linda, and good afternoon from cold but very sunny Helsinki. I'd like to start with some general statements. It was a really very strong year for Konecranes and I'm very, very proud of our team and very proud to be part of the Konecranes team, particularly in a year like 2025. Konecranes has a very sound business model. We've been executing our strategy and that, of course, in this sort of environment has really improved resilience in our results. There was a very uncertain environment last year. We focused on executing our strategy and focused on the most important things. The year started on uncertain terms, but we acted fast and early, whether it's on pricing, focus on execution, or tight cost control. Towards the second half of the year, the market environment stabilized and particularly in the delivery side it was feasible, and that helped us to finish the year strong. And now when we look at towards 2026, we have a good order book in place, the structure is solid, and our strategy for 2026 has a very good roadmap in place. So I'm really confident for year 2026. So now let's look at how the year turned out. And then also how the quarter four looked like. Throughout the year, the demand environment stayed positive overall. There was a lot of positive development in many customer segments and connections, broad presence in different customer sectors and geographies, of course, helped us in this sort of volatile environment. Our orders were very strong, particularly in port solutions and industrial equipment, so we grew almost 12% in 2025 in comparable terms compared to 2024. The demand on industrial service instead was quite a tough demand environment, but even in this environment, we were able to strengthen our agreement base. We took very good care of our pricing and also made sure that we adjusted our cost base to the prevailing conditions. We also took care of our margins and our cost structure, good execution in our project business, and we continued to roll out our products according to our strategy. And that of course meant that we were able to complete the year with almost one percentage point improvement in the comparable EBITDA at 14% record high level. Moving on to quarter four. And in quarter four, our orders were also very good. So we continued very solid order intake and also sales. But it's also noteworthy that both decreased against a very strong comparison quarter of 2024, quarter four of 2024. So orders were down 4% and net sales roughly flat in comparable terms. Quarter four in 2024 had a very strong order intake in both solutions, but also in industrial equipment areas. where both actually had the second highest quarter of all time in Connexus. And that makes quarter four of 25 also very satisfactory for us. Our order book continued to strengthen and it was three percentage points higher or seven percentage points in comparable terms. Our profitability improved and increased to 14.1%. It was really very good pro-tech execution in industrial service, industrial equipment, and in port solutions. Port solutions with very good margins, but with slightly lower volume. And we kept our cost control intact and had a bit of pricing and tariff tailwind, but less than we had in quarter three. And of course the order book improved and that means a solid start for 2026. Now if you look at the market environment in general, how the best to describe it, maybe one way to say that the market and the customers have maybe got used a little bit to the uncertainty. So there's a course of positive development in the capacity utilization rate as it's visible in this industrial service and equipment. which shows the capacity utilization rates in the three main market areas. And our own funnels and our customer demand, how we see it, European sales funnels are good on solid level. There's some signs of improvement, but of course, customers continue to be rather cautious around this type of a volatile environment. In the United States, the previously very strong industrial equipment, funnel has somewhat flattened out, but on the other hand, on the service side, we see some signs of improvement, so customers starting to do the service that they may have put on hold temporarily during the kind of tariff-related uncertainty. It's, of course, too early to say how this actually pans out during this year, but we are optimistic in general about the marketing environment, or continue to be so. And in Asia Pacific, the market continues and the funnels continue to be on a stable level, but the tough competition continues, particularly from the Chinese competition. And then if you take a look at the port solution segment, Here the container throughput index, as we have discussed before, is of course the main indicator, and that continues to be on a very good level overall. Maybe there is some flattening in the growth rate, but it's still very positive. Our funnels continue to be good. There are big and small cases in the funnel. And of course, it's good to remember here that besides the obvious container throughput traffic indicator, There is the long-term prevailing trends in port solutions that are of course driving investments. That comes from the automation trend, the prevailing consolidation trend in that industry, changing the traffic routes driven by the repatriation and changing manufacturing locations. So of course we continue here to have a kind of positive general view on the market as we have had also last year. So iterating again a bit more about the quarter four, developed against the strong comparison period and how the past two years have gone, as you see here, because the order intake in quarter four was slightly down from previous year quarter four, but last year the order intake was actually very good and better than previous year in the first three quarters. There was a decrease in quarter four in all business areas, some increasing in Europe and some decreasing in America and APEC and actually the same profile is true for the sales side of things. Then next is time to look at the order book situation and we have had a solid above one book to be ratio throughout last year and we've been strengthening our order book throughout the whole last year since quarter four of 2024. So we have a particularly strong order book situation in port solutions. It is positive in industrial equipment with also positive mix, but it's also a bit down in industrial service. Now here you see the profitability development over the last few years. And again, comparing the quarters to each other, this is really a very strong progress and very strong execution to our strategy. There is an increase in industrial service and industrial equipment in quarter four. Some decrease in port solutions. Like I stated earlier, that's mainly driven by the volume. So port solutions continue to have good margins and good execution. And they also had a very good quarter four last year. Some less tariff tailwind, but still some visible in quarter four. Really good cost management and slightly weaker mixing in port solutions. But we're very happy with this 14.1% outcome due to quarter four last year. And that of course really helped us to reach this almost a percentage point year on year, full year improvement of profitability. Now then it's time to take a look at how we track in our profitability improvement progress or process. This is actually the third consecutive year in all three business areas where we consistently improve our profitability. All three business areas are well within their defined profitability, mid-term profitability ranges and we've done this on the rather challenging demand environment. But at the same time, of course, it is true to say that we have not really had a challenging downturn in terms of volumes yet. So as you will see here, there's been pressure on the volumes and we've shown continuous good profitability improvement. And of course, with additional volumes, then this is, we are confident that this continues to be a good story. And now I would like to hand over to Teo and then I'll come back in after a few slides to talk about the demand outlook and a couple of other things.

Thank you, Marko. And let's take a look at some of the business area numbers in more detail. But before going there, as usually, so let's take a brief look at the comparable EBITDA bridge. between Q4-24 and Q4-25. So we had close to one percentage point improvement in the EBITDA margin in an year-on-year comparison, and this translates into roughly 5 million improvement in EBITDA in euros. And let's unpack this now next a little bit. So pricing impact year-on-year was roughly 3%. And then when we combine with that information, the fact that there was a sales decline in comparable currencies. So we are actually taking a look at the underlying volume decline of some 4% or so, which obviously is not good from the profit and profitability point of view. However, net of inflation pricing, mix, and then particularly good execution, so project execution, for instance, then we're all working in a positive manner, and as a result of that, the net of all of those impacts is positive by 13 million, as we can see as a combination of volume, pricing, mix, and variable cost on the slide. And then fixed costs continued to be very well under control, so only 2 million increase in fixed costs in an year-on-year comparison, whereas then the translation impact as a result of TFX differences was a clearly negative number, minus 7, and as a result of all of these then combined, so we end up with the improvement of roughly 5 million euros in an year-on-year comparison. Then moving on to the business areas, starting with industrial service. So we had order intake of 380 million euros. So this is actually a decline in reported currencies, but an improvement of more than 2% in comparable currencies. So like already mentioned in connection to the bridge, so actually the FH differences continue to play a big role now in the fourth quarter as well. Taking a look at the different parts of the businesses, so field service declined in the order intake in a year-on-year comparison, whereas past business got up. And then when we take a look at the regions, so EMEA did well, so there was an increase, whereas then Asia-Pacific and Americas both saw a decline in the order intake. Agreement base actually grew by 4.4%, like Marco already also mentioned. Order book decline of 7%. That's a big number, but in reality, that is almost all, let's say, of everything actually is in relation to the currency changes. Net sales 3.5%, higher year-on-year in comparable currencies. The story is very similar to what it is in the order intake. So PATH did better than the field service and of the regions, INEA did better than Asia Pacific and Americas. Comparable EBITDA margin, 21.9% on a very good level, 1.3 percentage point improvement year on year. The improvement did not obviously come from the volume, as the net sales increases roughly in line with the pricing change. It actually more came from pricing, from good execution, as well as then efficient cost management in general. Then moving on to the industrial equipment. So there we have an order intake increase in comparable currencies of roughly 1%. However, when we take a look at the external orders, so this is down slightly by almost one percentage point against fairly tough comparables, fourth quarter of 24 was very good from the industrial equipment order intake point of view. Of the business units, we had growth in components in a year-on-year comparison. We had a decline in process grains and standard grains as well, a slight decline. One would maybe also say that this was flattish in a year-on-year comparison. And of the regions, again, IMEA did fairly well, so increased there, whereas then we had a decline or decrease in the Americas and APAC. In a sequential comparison, and taking a look at the business units, so components orders actually rose also in a quarterly comparison, so the component orders in the fourth quarter were very good. We had a decline in port grains as also in a year-on-year comparison, and then standard grains were fairly flat in a sequential comparison, similar to what it was in a year-on-year comparison as well. Here our order book rose by 2% and of course with comparable currencies even more. Net sales up 3% roughly taking a look at the total volume or then the external volumes falls roughly 3% up. The sales mix was such that it was a little bit more favorable from the margin point of view now in the fourth quarter of 25 than a year ago. And then when taking a look at the comparable EV day margin, 11.7%, excellent improvement of more than two percentage point in a year-on-year comparison. Again, good execution, pricing, and of course also the already mentioned mix supported the profitability in the fourth quarter. And then BOT solutions, order intake, 406 million euros, This is a decline of roughly 11% in a year-on-year comparison, of course, against very tough comparables. So also here, the fourth quarter of 24 was very good from the order intake point of view. When we take a look at different businesses within Port Solutions, so Leaf Trucks actually had good activity as well as RTGs, Port Service quite slattish in a year-on-year comparison. And then when taking a look at sequentially, particularly the business units that are more short cyclical, like lift trucks and port service, so lift trucks had an increase also in a sequential comparison, so Q4 was higher than Q3, and port service was relatively on the same level in fourth quarter as in third quarter, so flat exactly like in a year-on-year comparison as well. Net sales declined by as much as 7% in a year-on-year comparison. This was, of course, as a result of the order book timing and as such, as expected already earlier. Order book, however, is clearly higher than what it was a year ago, thanks to good order intake that has been there basically throughout the whole of 2015. Comparable EVTA margin, 9.2%. So this is decline of half a percentage point. So this primarily obviously comes from the lower volume So sales was lower than a year ago. Mix did not help here. So in POTS, it was rather negative than positive in a year-on-year comparison. But this was partly offset by very good execution and project execution in the fourth quarter within the POTS business. Then a couple of comments on the balance sheet side. Let's start with the networking capital as usual. Networking capital has continued to be on a very low level, so there is no meaningful change. From the third quarter, obviously, with the structure is a little bit different. Inventories have turned into accounts receivable, but otherwise very much on the same level. The improvement in comparison to a situation a year ago comes from accounts receivable as well as advanced payments. And then on the right hand side, we can see the free cash flow, which continues to be on very good record levels, actually also for 25 and the cash conversion continues to be clearly above 100%. Then consequently, of course, as a result of the cash flow, our balance sheet from the net debt point of view looks very strong, or actually we have net cash in the amount of more than 160 million at the end of the year. And then finally from the balance sheet point of view, so the return on capital employed on comparable terms, 22.1 at the end of 25. And then I will invite Marko back to talk about the outlook for 26.