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Investing.com -- Schindler (SIX:SCHN) on Friday posted stronger-than-expected margins and order growth in the second quarter, as efficiency gains continued to support profitability despite revenue falling short of estimates.
Second-quarter adjusted EBIT rose to CHF 372 million, 5.7% ahead of consensus. The adjusted EBIT margin reached 13.5%, up from 11.6% a year earlier and exceeding the 12.5% consensus estimate.
Operating profit increased to CHF 346 million from CHF 326 million, with a reported EBIT margin of 12.6%, compared to 11.2% a year earlier.
Net profit for the quarter rose 4.6% to CHF 274 million from CHF 262 million. Earnings per share increased to CHF 2.42 from CHF 2.27.
Cash flow from operating activities declined to CHF 163 million from CHF 169 million. Investments in property, plant and equipment totaled CHF 24 million, compared with CHF 27 million in the prior-year quarter. Headcount stood at 69 922 at quarter-end, a 0.7% decrease from a year earlier.
Revenue for the quarter declined 5.7% year over year to CHF 2.76 billion, down from CHF 2.92 billion.
In local currencies, revenue rose 0.4%. Jefferies noted that the result was 2% below consensus, which had projected 2% local currency growth to CHF 2.82 billion.
Order intake fell 1.9% in Swiss francs to CHF 2.94 billion but rose 4.6% in local currencies.
The result was 0.9% ahead of consensus expectations of CHF 2.91 billion, based on a 3.2% local currency growth estimate.
Modernization orders increased more than 10% across all regions and exceeded 20% globally. Service orders were flat in the Americas and steady elsewhere.
EMEA new installation orders declined 5% to 10%, while China’s modernization orders rose more than 10% in the quarter, compared with 0% to 5% in the previous quarter.
The order backlog stood at CHF 8.01 billion at the end of June, up 0.8% in local currencies year over year but down from CHF 8.34 billion at the end of the first quarter. Compared to a year earlier, the backlog declined 7.4% in Swiss francs.
In the first half of 2025, adjusted EBIT rose to CHF 705 million from CHF 637 million a year earlier.
The adjusted EBIT margin reached 12.8%, up from 11.4%. Reported EBIT increased to CHF 675 million from CHF 618 million, with a margin of 12.3%.
Net profit rose 7.5% to CHF 531 million from CHF 494 million. Earnings per share increased to CHF 4.68 from CHF 4.32. Cash flow from operating activities totaled CHF 703 million, up from CHF 676 million.
First-half revenue fell 1.9% to CHF 5.49 billion, down from CHF 5.59 billion. In local currencies, revenue increased 1.4%.
Order intake rose 1.8% to CHF 5.89 billion and 5.3% in local currencies. Foreign exchange effects reduced order intake by CHF 205 million and revenue by CHF 186 million.
Schindler maintained its 2025 guidance, expecting low single-digit revenue growth in local currencies and a reported EBIT margin of about 12%.
The Swiss company maintained its midterm target of a 13% reported EBIT margin.
The market outlook for China’s service segment was revised to 0% to 5% growth, down from 5% to 10%, which lowered the global service growth outlook to the 0% to 5% range.