Schindler (SCHN) Q4 2024 earnings summary

Executive summary

• Achieved 2024 outlook with strong service and modernization performance offsetting declines in new installations, particularly in China, and record net profit of CHF 1,010 million.

• EBIT margin improved by 100 basis points year-over-year to 11.3%, with adjusted EBIT margin at 12%.

• Operating cash flow reached CHF 1,595 million, up 25%, and net liquidity at year-end was CHF 3.7 billion.

• Board proposed a dividend of CHF 6.00 per share, payout ratio at 68%.

• Strategic framework focused on People, Product, Performance, and Planet, with continued transformation and sustainability initiatives, including EcoVadis Platinum recognition.

Financial highlights

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

• EBIT margin improved to 11.3% (reported), 12.0% (adjusted); operating profit CHF 1,266 million (+6.6%).

• Net profit margin: 9.0% for the year; earnings per share CHF 8.83.

• Operating cash flow CHF 1,595 million, driven by improvements in net working capital.

• Currency headwinds negatively impacted order intake, revenue, and operating profit.

Outlook and guidance

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

• Mid-term EBIT margin target set at 13% by 2027, with incremental annual margin uplift of ~50 basis points in 2026 and 2027.

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

• Service and modernization expected to drive growth, while new installations, especially in China, remain under pressure.