Elevators Schindler continues to score with renovations and in the service business
The elevator and escalator manufacturer Schindler generated slightly lower sales in the second quarter of 2025 than a year ago, but clearly increased its profitability.
18.07.2025, 07:08
SDA
While the new installation business continues to struggle, modernizations and the service business are also on the rise this year.
Schindler reported a turnover of 2.76 billion Swiss francs for the months of April to June, as the Group announced on Friday. This was 5.7 percent less than in the previous year and corresponded to a slight increase of 0.4 percent in local currencies.
Incoming orders were slightly lower than in the same period of the previous year. They fell by 1.9% to CHF 2.94 billion, although adjusted for currency effects, this represents an increase of 4.6%.
The different areas developed differently: the business focused on the modernization of existing systems continues to perform very well. The Group also won new orders in the service segment, while the new installations segment in China continued to decline.
Profitability continues to increase
Schindler increased its operating profit (EBIT) by 6.1 percent to CHF 346 million in the second quarter and by 9.7 percent to CHF 372 million when adjusted for one-off effects. The adjusted margin climbed to 13.5 percent after 11.6 percent in the previous year. Meanwhile, net profit rose to 274 million (+4.6 percent).
Increased operational efficiency, effects from the pricing policy and the changed product mix contributed to the increase in profitability, according to the statement.
Overall, Schindler just missed analysts' expectations for turnover with the figures presented, while those for earnings were exceeded. On average (AWP consensus), experts had expected sales of CHF 2.81 billion, adjusted EBIT of CHF 352 million and net profit of CHF 267 million.
Efficiency gains make themselves felt
In the first half of the year as a whole, Schindler's turnover fell by 1.9 percent to 5.49 billion Swiss francs, orders received were up 1.8 percent to 5.89 billion and EBIT was up 9.2 percent to 675 million. The bottom line was a 7.5 percent higher net profit of CHF 531 million.
"Our measures to increase efficiency are reflected in rising margins," said Paolo Compagna, Group CEO since the beginning of April, according to the press release. Despite significant foreign currency effects, the modernization business in particular has achieved solid organic growth.
Targets confirmed
Looking ahead, Schindler remains true to the targets set for 2025 as a whole: the Group is still aiming for currency-adjusted revenue growth in the low single-digit percentage range and an improvement in the operating margin to around 12 percent. In the medium term, Schindler continues to aim for a 13 percent margin.
Schindler expects the market for renovations to remain strong, particularly in China. And while revenue is also likely to increase in the global service business, the market outlook for new installations remains subdued. Here too, developments in China are having a negative impact on business.
