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Introduction & Market Context
Schindler Holding AG presented its first quarter 2025 results on April 30, revealing a robust start to the year despite challenging market conditions. The Swiss elevator and escalator manufacturer reported accelerated order growth and continued margin expansion, while also addressing headwinds including tariff impacts and a significant market downturn in China.
The company completed its leadership transition during the quarter and introduced a new innovation, the Schindler X8, at Milan Design Week in April 2025. These developments come as Schindler navigates a mixed global market environment, with strong performance in service and modernization segments offsetting weakness in new installations, particularly in China.
Quarterly Performance Highlights
Schindler reported total order growth of 6.0% in local currency (LC), with high single-digit growth in both Service and Modernization segments. Revenue increased by 2.5% in LC (2.2% in CHF) to CHF 2,732 million, with growth across all regions except China. The company achieved a reported EBIT margin of 12.0%, representing a significant improvement of 110 basis points year-over-year.
As shown in the following financial performance overview:
Operating profit (EBIT) reached CHF 329 million, a 12.7% increase from CHF 292 million in Q1 2024. Adjusted EBIT, which excludes restructuring costs, grew by 11.7% to CHF 333 million. Net profit rose 10.8% to CHF 257 million, with earnings per share increasing to CHF 2.26 from CHF 2.05 in the prior-year period.
The company’s order intake showed growth across regions and segments, with particularly strong performance in Modernization:
Detailed Financial Analysis
Schindler’s revenue growth was driven by organic expansion and acquisitions, which more than offset negative currency impacts. The detailed breakdown of these factors is illustrated in the following chart:
The company’s margin improvement was attributed to efficiency gains, pricing, and favorable mix effects, which successfully countered inflation pressures. Operating cash flow remained strong at CHF 540 million, representing a 6.5% increase from CHF 507 million in Q1 2024.
Net profit margin improved to 9.4% from 8.7% in the prior-year period, reflecting the company’s operational efficiency initiatives and pricing discipline:
A significant challenge facing Schindler is the impact of tariffs, which the company estimates will have a gross cost impact of CHF 33 million on an annualized basis and CHF 23 million in 2025. The company has initiated several mitigating actions to fully offset these impacts:
Strategic Initiatives & Market Outlook
Schindler has revised its market outlook for 2025, notably lowering expectations for New Installations in the Americas. The company anticipates continued strong performance in Service and Modernization segments globally, while projecting a significant downturn in New Installations in China:
The company’s key strategic initiatives include optimizing factory footprint utilization, in-sourcing certain operations, enhancing supplier management, exploring alternative sourcing, and implementing pricing adjustments to offset tariff impacts.
Schindler also highlighted its innovation efforts with the introduction of the Schindler X8 at Milan Design Week in April 2025, reinforcing its commitment to product development despite market challenges.
Forward-Looking Statements
For the full year 2025, Schindler maintains its guidance of approximately 12% EBIT reported margin and low single-digit local currency revenue growth. The company identified several tailwinds and headwinds that will influence its performance:
The positive factors include growing Service and Modernization markets, operational efficiency improvements, pricing and costing discipline, and favorable mix impacts. These are partially offset by tariff impacts, market uncertainty, the China market downturn, sustained wage inflation, and restructuring costs.
Schindler’s quarterly results demonstrate the company’s resilience in navigating a complex global market environment, with its diversified business model allowing it to offset weakness in certain segments and regions with strength in others. The company’s focus on operational efficiency and strategic pricing continues to support margin expansion despite inflationary pressures and tariff challenges.
Full presentation:
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