Schindler (SCHN) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw order intake up 6% and revenue up 2.5% year-over-year in local currency, with strong performance in Service and Modernization, while China lagged.

• EBIT margin improved to 12.0%, up 110bps year-over-year, driven by efficiency gains, pricing, and no restructuring charges.

• Operating cash flow was robust at CHF 540 million, up 6.5% year-over-year, supported by improved earnings and stable net working capital.

• Net profit rose to CHF 257 million (9.4% margin), with EPS at CHF 2.26, up from CHF 2.05 year-over-year.

• Leadership transition to the new CEO was completed smoothly, with no operational disruption.

Financial highlights

• Order intake reached CHF 2,947m (+6.0% in local currency), revenue CHF 2,732m (+2.5% in local currency) compared to Q1 2024.

• EBIT was CHF 329m (12.0% margin), adjusted EBIT CHF 333m (12.2% margin).

• Net profit CHF 257m (9.4% margin), up from CHF 232m (8.7%) in Q1 2024.

• Cash and cash equivalents at CHF 2,462m; net liquidity CHF 3,581m.

• Backlog up 9% year-over-year; legacy backlog now 10% of total, down from 12% at year-end 2024.

Outlook and guidance

• 2025 guidance reaffirmed: low single-digit revenue growth in local currency and ~12% EBIT margin.

• Margin expansion expected to be more muted in coming quarters due to tariffs, restructuring charges, China burden, and less favorable mix.

• Service and Modernization markets expected to grow healthily; Modernization to see mid to high single-digit growth globally and double-digit in China.

• Global New Installation market expected to decline high single digit, mainly due to a low-teens contraction in China and a slight volume decline in the Americas.

• Mid-term EBIT margin objective reconfirmed at 13%.