Trump announces trade deal with EU following months of negotiations
Investing.com -- Schindler shares surged more than 7% on Wednesday after the elevator and escalator manufacturer posted stronger-than-expected first-quarter results, supported by growth in orders and profitability across most regions.
Orders rose 6% in local currencies to CHF2.95 billion, beating consensus estimates by 5%. The Americas and Asia-Pacific excluding China each recorded more than 10% growth in new installation orders.
Europe rose modestly, while China declined by more than 10%. Modernization orders grew over 10% in value, and service volume rose between 0% and 5%.
Revenue rose 2.5% in local currencies to CHF2.73 billion, coming in 1% ahead of expectations. Adjusted earnings before interest and taxes were CHF333 million, also 5% above forecasts.
That equated to a margin of 12.2%, 40 basis points higher than consensus and 110 basis points above the same period last year.
Analysts said the beat was driven by improved pricing, better operational efficiency and no restructuring costs.
Operating cash flow increased 7% from a year earlier to CHF540 million, helped by stronger earnings and a stable working capital position.
Schindler’s order backlog rose 2% year over year in local currencies to CHF8.34 billion. That figure was down from CHF8.66 billion at the end of 2024.
The company kept its 2025 forecast unchanged, with expectations for low single-digit revenue growth in local currencies and a reported EBIT margin of around 12%.
Analysts noted that Schindler already met the full-year margin target in the first quarter, which is typically the company’s weakest.
The company expects to offset CHF23 million in tariff-related costs forecast for 2025 through pricing, sourcing changes and production adjustments.
Schindler slightly lowered its 2025 outlook for new installations in the Americas, now expecting a slight decline versus earlier projections for growth.
The company expects stable conditions in EMEA and up to 5% growth in Asia-Pacific excluding China.
In China, the market is forecast to contract more than 10%. The company reaffirmed its medium-term goal of reaching a 13% reported EBIT margin.