Schindler Earnings: Service and Modernization Orders Remain Robust in Late 2024

Conditions in new elevator equipment markets remained challenging in late 2024 for wide-moat Schindler, owing to downbeat construction activity, most notably in China. Notwithstanding, fourth-quarter order intake rose 1.6% year on year on a constant-currency basis, with demand for elevator modernizations and robust service orders remaining robust in the final quarter of 2024. Schindler’s delivery of full-year 2024 order intake, revenue, and EBIT of CHF 11.3 billion, CHF 11.2 billion, and CHF 1.26 billion, respectively, aligned with our estimates. Looking forward, Schindler sits on a robust order backlog of CHF 8.6 billion as of Dec. 31, 2024—positioning the group for modest top-line growth in 2025. We make no change to our CHF 230 per share fair value estimate, with our long-term expectations for Schindler unchanged.