Schindler Projects Modest Growth for 2025 Due to Construction Slowdown
Swiss lift and escalator manufacturer Schindler has projected low single-digit revenue growth for 2025 citing weakness in new construction activity while highlighting growth in modernization and services.
1 Revenue Growth Outlook for 2025
Schindler expects limited revenue expansion in local currency terms due to:
- Declining demand in new construction projects.
- Stronger momentum in modernization and service segments.
Market Impact:
- Companies reliant on new real estate development may face headwinds.
- Service-based revenue models may outperform.
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2 EBIT Margin Expected at 12% in 2025
The company forecasts an EBIT margin of ~12 for the year slightly lower than Q4 2024 levels. In Q4 2024 adjusted EBIT margin improved to 12.5 from 11.4 reflecting:
- Improved pricing strategies.
- Restructuring measures.
- Ongoing digitization initiatives.
Market Impact:
- Margin stability signals better cost control despite weaker revenue growth.
- Tech-driven efficiencies could provide long-term profitability gains.
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3 Q4 2024 Financial Performance
Quarterly sales reached 2.86 billion Swiss francs missing analysts’ expectations of 2.95 billion francs.
Key Figures (Q4 2024 vs. Q4 2023):
- EBIT margin: 12.5 up from 11.4
- Revenue: 2.86B CHF below forecast of 2.95B CHF
Market Impact:
- A weaker top-line performance may pressure investor sentiment.
- Investors will watch modernization and service growth as key revenue drivers.
Final Thoughts
Schindlerโs 2025 growth outlook remains cautious as new construction declines but services expand. Investors should monitor:
- Profitability trends amid cost optimizations.
- Service and modernization revenue as growth drivers.
- Macroeconomic factors affecting new construction.