Company Reports

Schindler is one of four global leaders in the elevator and escalator industry, operating in a mature, consolidated, and structurally attractive market. Like its peers, Schindler derives most of its profit from its services business, which benefits from a large installed base and delivers stable, high-margin, recurring revenue and stable cash flows.

Schindler is one of four global leaders in the elevator and escalator industry, operating in a mature, consolidated, and structurally attractive market. Like its peers, Schindler derives most of its profit from its services business, which benefits from a large installed base and delivers stable, high-margin, recurring revenue and stable cash flows.

Schindler reported record first-half EBIT margin of 13.2%, despite just 1.4% local-currency revenue growth, as modernization momentum and modular platform efficiencies more than offset foreign exchange and China weakness. Management confirmed its full-year guidance.

Schindler posted a very decent EBIT margin of 13% in the first quarter—its seasonally weakest quarter—with modernization revenue up 15% in local currencies and full-year guidance confirmed despite severe foreign-exchange headwinds.

Schindler ended 2025 declaring its operational recovery complete. Revenue rose 2.6% in local currencies, while adjusted EBIT margin improved to 13.5%. Organic order intake grew 0.8%, driven by strong modernization and service orders, offset by a 15% decline in new installations.

Schindler is one of four global leaders in the elevator and escalator industry, operating in a mature, consolidated, and structurally attractive market. Like its peers, Schindler derives most of its profit from its services business, which benefits from a large installed base and delivers stable, high-margin, recurring revenue and stable cash flows.

Schindler is one of the big four global leaders in the elevator and escalator industry, operating in a mature, consolidated, and structurally attractive market. Like its peers, Schindler derives most of its profit from its services business, which benefits from a large installed base and delivers stable, high-margin, recurring revenue and stable cash flows.

Schindler reported a good set of results. Third-quarter 2025 local currency orders and sales were flat year on year, but EBIT increased 10% due to efficiencies and mix shift. Management restated low-single-digit top-line growth but raised the full-year EBIT margin outlook by 0.5% to 12.5% for 2025.

Schindler reported a strong set of second-quarter 2025 results with 4.6% and 0.4% organic order and sales growth, respectively, while EBIT increased 17%. Management reiterated low-single-digit top-line growth and 12% EBIT margin for 2025.

Schindler reported strong first-quarter results, with 6% and 3% order and sales growth, respectively, while EBIT increased 12%. Management reiterated guidance for low-single-digit top-line growth and 12% EBIT margin for 2025. Shares were up 7% intraday on April 30.

We take a fresh look at Schindler as we transfer coverage. Schindler is one of the four largest global elevator companies and generates revenue through the sale of new elevators, modernizing old equipment, and servicing its installed base. Operations span globally, with a strong presence in Europe.

Schindler is one of the big four global leaders in the elevator and escalator industry, operating in a mature, consolidated, and structurally attractive market. Like its peers, Schindler derives most of its profit from its services business, which benefits from a large installed base and delivers stable, high-margin, recurring revenue and stable cash flows.

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.

Wide-moat Schindler delivered a robust third quarter, which featured order intake growth of 5.5% in constant-currency terms. Strong demand for elevator modernizations and robust service orders offset still-weak market conditions for new equipment. Schindler’s elevator modernization business continues to grow strongly as Schindler capitalizes on the significant opportunity presented by an aging global installed base of elevators. Accordingly, growth in modernization orders accelerated in the third quarter, up 20% year on year, in constant-currency terms—up from the 5%-10% growth achieved in the prior quarter. Unsurprisingly, new equipment demand remained depressed in China, amid its ongoing real estate slump. Strong demand in the Americas and the Asia-Pacific (ex-China), due mainly to strong market conditions in both India and Brazil, helped to partially offset the ongoing weakness in new installation demand in China.

Schindler is an industry leader and one of the four largest globally active elevator and escalator original equipment manufacturers. As an integrated player, its operations span manufacturing, installation, and elevator and escalator servicing. Schindler also performs elevator modernization services for elevator systems at the end of their typical 15- to 20-year useful life. Schindler commands an approximate 15% share of the estimated $80 billion global elevator and escalator market.

Wide-moat Schindler Holding delivered a resilient second-quarter result featuring largely flat constant-currency new order intake year on year, with strong modernization and aftermarket service orders offsetting still weak demand for new elevator equipment installations. The continued buoyancy of modernization orders highlights the much-needed secular growth opportunity that the aging installed base of elevators globally represents for Schindler and its major elevator original equipment manufacturer peers. Schindler‘s operating margin showed pleasing progression--a 50-basis-point improvement sequentially to 11.6% in the second quarter--responding to operational efficiencies, pricing initiatives, and positive sales mix shift toward higher-profit margin aftermarket activities. Our long-term expectations for Schindler remain unchanged as does our CHF 220 fair value estimate. Schindler‘s shares screen as approximately fairly valued.

Our CHF 220 per share fair value estimate is intact and our 2024 estimates for wide-moat Schindler remain largely unchanged, with the group’s first-quarter trading performance tracking broadly in line with our full-year expectations. First-quarter order intake of CHF 2.8 billion represented a 2.5% constant-currency increase year on year, broadly in line with our full-year expectations for 2.7% constant-currency order growth in 2024.

Schindler is an industry leader and one of the four largest globally active elevator and escalator original equipment manufacturers. As an integrated player, its operations span manufacturing, installation, and elevator and escalator servicing. Schindler also performs elevator modernization services for elevator systems at the end of their typical 15- to 20-year useful life. Schindler commands an approximate 15% share of the estimated $80 billion global elevator and escalator market.

Wide-moat Schindler Holding delivered a buoyant fourth-quarter 2023 result that highlights the underlying resilience of its business model. Fourth-quarter order intake pleased investors, rising 1.5% year on year in constant-currency terms, with strong demand for modernization and maintenance service in late 2023 offsetting continuing weakness in orders for new equipment. Full-year 2023 order intake was CHF 11.4 billion in 2023—up 1.7% on a constant-currency basis, broadly according with our full-year expectations for modest growth in order intake as Schindler’s order intake returned to growth in the second half. Schindler’s top line also tracked our expectations in 2023, with full-year revenue increasing to CHF 11.5 billion, up 7% year on year in constant-currency terms. Nonetheless, full-year 2023 EBIT of CHF 1.25 billion was slightly ahead of our expectations owing to better realization of operational and supply chain efficiencies than we’d previously credited.

Demand for new elevator installations remains weak globally in late 2023. Nonetheless, wide-moat Schindler Holding pleased investors, growing new order intake by 3.8% in the third quarter, in local currency terms, spurred on by continued strength in service and modernization orders that offset ongoing cyclically weakened orders for new equipment. The resilience of service and modernization orders reinforces Schindler’s order book—which stood at a pleasing CHF 9.3 billion at the end of the third quarter. In turn, Schindler’s order book should continue to support robust sales growth through the remainder of 2023, having advanced at 8.5% in the first nine months of 2023 in local currency terms. Our 2023 estimates for Schindler are largely unchanged—we forecast full-year net profit of CHF 905 million, near the top end of Schindler’s upwardly revised CHF 880 million-CHF 910 million guided range. Investors warmed to the result with shares up 3% at the time of writing. Still, Schindler’s shares screen as undervalued, trading at an approximate 15% discount to our unchanged CHF 210 fair value estimate.