Schindler (SCHN) Q3 2024 earnings summary

Executive summary

• Achieved seventh consecutive quarter of year-on-year EBIT margin improvement, with Q3 2024 showing both bottom line and top line progress despite challenging market conditions.

• Service and Modernization markets remained robust globally, while New Installations (NI) markets were mixed, with China declining but India, Brazil, and the Middle East accelerating.

• Modernization order intake grew 20% year-on-year in Q3 2024 (local currency), and a CHF 500 million share buyback program was announced.

• Order intake grew 5.5% year-over-year in local currencies, with growth in all regions except China.

• Recognized by Newsweek Statista and Time magazine for trustworthiness and performance.

Financial highlights

• Q3 2024 order intake: CHF 2,711m (+5.5% YoY in LC); revenue: CHF 2,788m (+2.6% YoY in LC).

• EBIT margin reached 11.7% in Q3 2024; adjusted EBIT margin was 12.6%, or 12.1% excluding asset sales.

• Q3 net profit: CHF 254m (+11.4% YoY); net profit margin: 9.1%.

• Operating cash flow improved 27% year-on-year, reaching CHF 257 million in Q3; 9M 2024 cash flow from operations surged 29% to CHF 933 million.

• 9M 2024: revenue CHF 8,381m (+1.8% YoY in LC), net profit CHF 748m (+8.2% YoY), EPS CHF 6.48.

Outlook and guidance

• 2024 guidance confirmed: low single-digit revenue growth in local currencies and reported EBIT margin of at least 11%, including up to CHF 80 million in restructuring costs.

• No margin guidance increase due to expected higher restructuring costs in Q4, continued headwinds in China NI, and backlog delivery uncertainties.

• Service and Modernization markets expected to remain growth drivers; NI market conditions remain challenging.