Schindler (SCHN) Q4 2024 earnings summary

Executive summary

• Achieved 2024 outlook with record net profit and strong operating cash flow, despite market headwinds, especially in China.

• Service and Modernization segments drove order and revenue growth, offsetting declines in New Installations.

• Eight consecutive quarters of margin improvement, driven by supply chain, innovation, and pricing initiatives.

• Strategic focus on People, Product, Performance, and Planet, with operational efficiency and sustainability recognized by EcoVadis Platinum.

• Leadership transition with new CEO and board changes, outgoing Chairman/CEO expressing confidence in new management.

Financial highlights

• FY24 revenue CHF 11,236 million, up 0.8% in local currency, down 2.2% reported; order intake CHF 11,325 million (+2.2% local currency, -1.0% reported).

• Operating profit (EBIT) CHF 1,266 million (+6.6%), EBIT margin 11.3% (up from 10.3%), adjusted EBIT margin 12.0%.

• Net profit CHF 1,010 million (+8%), net profit margin 9.0% (up from 8.1%), EPS CHF 8.83.

• Operating cash flow CHF 1,595 million (+25.5%), supported by net working capital improvements.

• Dividend proposed at CHF 6.00 per share, payout ratio 68%.

Outlook and guidance

• 2025 guidance: low single-digit revenue growth in local currencies, EBIT margin ~12%.

• Mid-term EBIT margin target of 13% by 2027, with incremental annual margin improvements of ~50 basis points.

• Ongoing efficiency initiatives in procurement and SG&A expected to drive margin uplift.

• Restructuring costs expected up to CHF 15 million in 2025.

• Growth expected in Service and Modernization; New Installations to see slight growth outside China.