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

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.

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.

• 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

• 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

($1 = 0.8961 euros)

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