Schindler (SCHN) Q2 2025 earnings summary

Executive summary

• Operational efficiencies and strategic focus drove margin expansion in H1 2025, with EBIT margin rising to 12.3% and net profit margin to 9.7%, supported by strong modernization and steady service growth despite macroeconomic and FX headwinds.

• Order intake grew 5.3% in local currencies, with modernization orders up 22% and service business expanding mid-single digit.

• Revenue grew 1.4% in local currencies, but was muted in reported terms due to significant FX headwinds, especially from China.

• Operating cash flow reached CHF 703 million in H1, up 4% year-over-year, reflecting stronger profitability.

• US mid-rise product rollout gained momentum, with positive customer response.

Financial highlights

• H1 2025 order intake was CHF 5,886m (+1.8% y/y, +5.3% in local currencies); revenue CHF 5,487m (-1.9% y/y, +1.4% in local currencies).

• EBIT increased 9.2% to CHF 675m (12.3% margin), with adjusted EBIT margin at 12.8%.

• Net profit rose 7.5% to CHF 531m, with EPS at CHF 4.68, up 8.3% year-over-year.

• Q2 EBIT margin reached 12.6%, net profit margin 9.9%.

• Order backlog at CHF 8,013m, up 3.8% in local currencies year-over-year.

Outlook and guidance

• 2025 guidance maintained: low single-digit revenue growth in local currencies and EBIT margin around 12%.

• Margin expansion expected to be more muted in H2 due to higher restructuring charges (CHF 70 million expected for 2025), tariff risks, and lower margin tailwind from mix.

• Service and modernization markets projected to grow globally, but China service outlook reduced to mid-single digit and new installations market anticipated to decline by high single digit, mainly due to China.

• Mid-term objective to reach EBIT margin of 13% reconfirmed.

• Headwinds include tariffs, China market downturn, wage inflation, and restructuring costs.