Elevators Schindler further increases profit in 2024
Schindler experienced a mixed financial year in 2024. While turnover fell slightly, the lift and escalator manufacturer further increased its profit.
12.02.2025, 06:51
12.02.2025, 07:22
SDA
Turnover fell by 2.2 percent to 11.24 billion Swiss francs, as the Central Swiss company announced on Wednesday. The strong Swiss franc again acted as a headwind. Foreign currency effects depressed sales by 348 million francs. In local currencies, Schindler would have grown by 0.8 percent.
"The decline in sales in the new installations business in local currencies was more than offset by growth in the modernization and service business," it said. Sales in local currencies increased in all regions except China.
The market launch of the new standardized modular elevator platform is proceeding according to plan. It is now available in the most important markets in Europe and has been launched in the Asia-Pacific region.
Operational increase
Adjusted operating profit EBIT climbed by 7.1 percent to CHF 1.34 billion. The operating margin improved to 12.0% after 10.9% in the previous year. The figures do not include certain items such as restructuring costs and expenses for the "Building Minds" efficiency program.
If these are taken into account, EBIT rose by 6.6% to CHF 1.27 billion. At the bottom line, net profit increased by 8.0% to CHF 1.01 billion. Better operating efficiency, effects of the pricing policy and the changed product mix contributed to this.
"2024 was the third year in a row in which we improved operationally," explained the new CEO Paolo Compagna: "We have moved towards our medium-term margin target and were able to post a high cash flow. At the same time, the dividend payout to shareholders was increased."
More dividend
With these figures, Schindler slightly missed analysts' expectations in terms of revenue and adjusted EBIT, but slightly exceeded them in terms of EBIT, net profit and the dividend. The Group also partially exceeded its own targets. Schindler had forecast sales growth in local currencies in the low single-digit percentage range and an EBIT margin of 11 percent.
Shareholders are now to receive a higher dividend: Schindler intends to distribute CHF 6.00 per share and participation certificate. In the previous year, Schindler paid 5.00 francs per share, although this included an anniversary dividend of 1.00 francs.
However, the basis for future results has shrunk somewhat. Orders received fell by 1.0 percent to 11.33 billion Swiss francs.
The global downturn in the construction sector, particularly in China, continued. As a result, order intake in the new installations business fell, albeit less sharply than the market as a whole. In contrast, the modernization and service business increased, Schindler wrote.
For 2025, Schindler expects revenue growth in the low single-digit range in local currencies, provided no unexpected events occur. The EBIT margin should reach around 12 percent. In the medium term, the company aims to further improve its competitiveness. The Group is still aiming for an EBIT margin of 13 percent.
