Schindler Holding AG

In the first half of 2026, order intake grew 2.9% in local currencies, revenue grew 1.4%, and EBIT margin expanded 90 basis points to a record 13.2% (13.5% adjusted). In Q2 specifically, order growth was 2.9% in local currencies and revenue growth was 1.1%. Net profit margin moved above 10% in Q1 and continued higher in Q2. Backlog was up 5.8% versus year-end 2025, and backlog margin improved sequentially. For 2026, Schindler confirmed guidance for revenue growth of low to mid single digits in local currencies and an EBIT margin of 13%. Management also said modernization should deliver strong double-digit growth, service mid-single-digit growth, and new installation headwinds should ease somewhat in the second half.

Paolo Compagna emphasized that the company delivered another record operating profit and said the underlying operational execution was strong. He highlighted the modular platform as a key driver of competitiveness, field efficiency, and market share gains in Europe, and said the strategy is unchanged even as competitors consolidate. His tone was confident but disciplined: he repeatedly pointed to China as the main headwind, while stressing that modernization is growing in every zone and that Schindler still sees opportunities from industry change.

Carla De Geyseleer focused on the bridge from operating performance to full-year guidance. She said H1 EBIT margin was 13.2% and adjusted margin 13.5%, with CHF 45 million of operational improvements in the H1 EBIT bridge; she also noted that H2 should see more cost inflation, with about CHF 35 million of additional energy and commodity pressure for the full year, roughly two-thirds in the second half, plus about CHF 15 million of annual tariff impact. She said H1 operating cash flow was below last year because of working-capital pressure from weaker China NI down payments and the U.S. ERP rollout, but she expects that to reverse partly or completely in H2. She also said IFRS 18 would have reduced H1 operating profit by about CHF 20 million, or roughly 40 basis points of EBIT margin.

Analysts pressed on whether the gap between unit growth and value growth outside China reflected pricing pressure; management said it was mix, not price pressure, with more large projects and modular-platform business altering the mix. Questions also focused on the strength of Europe, North America service selectivity, and whether China NI declines might moderate; management said Europe is benefiting from the modular platform, North America service is being managed for better-quality orders, and China NI remains challenging with a likely high-single-digit to low-double-digit decline range. On capital allocation and accounting, management explained the IFRS 18 impact and said tariff refunds have started to be filed, though any benefit should be only a few million francs and not material overall.