Schindler Holding AG (SHLAF) (Full Year 2025) Earnings Call Highlights: Strong EBIT Margin and …

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Thu, February 12, 2026 at 12:03 AM GMT+9 4 min read

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**EBIT Margin:** 12.6% for 2025, exceeding the initial expectation of around 12%.

**Modernization Orders:** Up 19% in 2025, with revenue up 12%.

**Operating Cash Flow:** CHF 1.5 billion for the year.

**Dividend:** Proposed ordinary dividend of CHF 6 per share and an extraordinary dividend of CHF 0.80.

**Net Profit:** CHF 1.1 billion for the year, with a margin of 9.8%.

**Order Intake Growth:** 3.1% in local currencies for 2025; excluding China, growth was 5.4%.

**Revenue Growth:** Driven by Modernization, up 22% in Q4 and 12% for the full year 2025.

**Net Liquidity:** CHF 3.9 billion at the end of 2025.

**Share Buyback Program:** Over 700,000 shares bought back for CHF 200 million in 2025.

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Release Date: February 11, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Schindler Holding AG (SHLAF) completed its operational recovery, achieving 12 consecutive quarters of year-on-year EBIT margin improvement.

The company delivered a reported EBIT margin of 12.6% for 2025, exceeding initial expectations of around 12%.

Modernization orders increased by 19% in 2025, with revenue up 12% as backlog execution accelerated.

Schindler Holding AG (SHLAF) achieved strong cash flow, with operating cash flow reaching CHF1.5 billion for the year.

The Board proposed a dividend of CHF6 per share for 2025, along with an extraordinary dividend of CHF0.80, reflecting a payout ratio of 72%.

Negative Points

Organic growth rate was lower than some peers, with significant challenges in China impacting overall performance.

New Installation order volumes declined by over 10% in 2025, with a sharper decline of over 15% in Q4, primarily due to China.

The company faced FX translation headwinds amounting to more than CHF450 million on order intake in 2025.

Schindler Holding AG (SHLAF) anticipates a global market decline of more than 5% in New Installations for 2026, driven by a contraction in China.

The margin tailwind from mix is expected to neutralize or turn modestly negative in 2026, as New Installations stabilize and Modernization grows.

Q & A Highlights

Q: Can you explain the lower organic growth rate compared to peers, especially regarding China and large projects? A: Our lower growth is primarily due to China, where we adjusted our structure and were selective with large projects. We deliberately chose not to pursue certain large projects to avoid past issues, impacting our order intake (OIT), especially in New Installations (NI).

Story continues  

Q: With the operational recovery phase completed, how do you plan to achieve best-in-class margins? A: The operational recovery phase, which began in mid-2022, is complete. We aim to continue margin expansion while accelerating growth, focusing on a profitable growth agenda. More details will be shared at our Investors Day in June.

Q: Regarding the Americas Service business, should we expect the decline in unit growth to persist in 2026? A: The decline is due to our strategy of selectivity in recaptures. We expect the softer contribution from NI conversions to end this year, so the trend should not continue in 2026.

Q: What are the expected raw material or commodities headwinds for 2026? A: We anticipate headwinds, particularly in copper, aluminum, and steel in the US, which are included in our guidance. The impact could be up to CHF 15-20 million, depending on the scenario.

Q: How do you see the growth guidance for 2026, and what variables could lead to higher growth? A: Our 2025 order intake growth was mixed, with lower-than-expected growth in China but higher growth elsewhere. For 2026, we expect further growth outside China and a slight recovery in China, leading to the guidance shared.

Q: Can you provide insights into the Modernization order book versus capacity? A: We accelerated execution in 2025 by building resources in key markets and will continue to do so. We are prepared for backlog execution in 2026 and expect Modernization to be a significant business driver.

Q: What is the level of standardization in New Installations (NI) and Modernization? A: In NI, we are more than halfway through our standardization program. In Modernization, full replacements have a high level of standardization, while partial replacements are at 50%. Our ultimate target is 85-90% standardization in NI and over 80% in Modernization.

Q: Can you elaborate on the cost savings achieved in 2025 and expectations for 2026? A: In 2025, major savings came from SG&A and supply chain efficiencies. We aim for similar savings in 2026, with a focus on operational efficiencies in NI and Modernization. Approximately 50% of the CHF 163 million operational improvement in 2025 was due to cost savings.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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