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February 12, 2025

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.

Investor Tip: To analyze the overall industry and economic conditions impacting Schindler refer to the Entreprenerdly com Economics Calendar API which provides macroeconomic indicators that influence business cycles and infrastructure investment.


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.

Want to analyze Schindler’s financial performance in-depth? Check out the latest Balance Sheet Statements via the Entreprenerdly com Balance Sheet API for insights into Schindlerโ€™s assets liabilities and equity trends.


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

Schindlerโ€™s 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.
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