TK Elevator: Sales growth in service and modernisation

In its third full financial year of independence, the sales of TK Elevator rose FX-adjusted by 6 percent to €8.9 billion.

Double-digit sales growth occurred in in modernisations along with high single-digit growth in service. However growth in new installations was only in the low single digits, the company explained. New orders rose year-over-vear FX-adjusted by two percent to € 9.2 billion.

In a "continuously challenging environment with high inflation and increased interest rates", TK Elevator had "substantially improved key financial performance indicators… further adding to the significant progress realized since the carve-out in 2020," according to the press release of the group.

"Despite negative FX effects and high inflation," the adjusted EBITDA increased to €1.3 billion. This was a year-on-year increase of 14 percent (more than €150 million) and an increase of 24 percent or more than €250 million since the carve-out in the 2019/20 financial year. The group improved its adjusted EBITDA margin by more than one percentage point to a new high of 14.6 percent and continued to generate positive free cash flow.

Growth in the Chinese market

Service and modernization constituted 60 percent of the group’s revenues in the financial year 2022/23. According to the company, TK Elevator had invested in targeted service and modernization solutions and was leveraging its "leading positions in the attractive North American, German, and Spanish modernization markets where more than 50 percent of all elevators are more than 20 years old."

At the same time, TK Elevator had become one of the fastest growing companies in the Chinese service and modernization markets and had increased its maintenance portfolio since the carve-out by more than 50 percent and had accelerated the FX-adjusted modernization growth to 80 percent in the 2022/23 financial year, the company press release continued.

More information: tkelevator.com