This article first appeared on GuruFocus .
-
Order Intake Growth:2.9% increase in local currencies, with modernization business growing close to 13%.
-
Revenue Growth:1.4% increase in the first half of the year.
-
Operating Margin:Expanded by 90 basis points to 13.2%.
-
Net Profit Margin:Exceeded 10% in the first half of the year.
-
Order Backlog:Up 5.8% versus year-end 2025.
-
Modernization Orders in EMEA:Grew by 60%.
-
FX Impact on Revenue:CHF233 million headwind in H1.
-
Operating Cash Flow:Below last year's level due to net working capital challenges.
-
Full Year Revenue Guidance:Low to mid-single-digit growth in local currencies.
-
Full Year Margin Guidance:13% for 2026.
-
Cost Inflation Impact:Expected additional CHF35 million from energy and commodity pricing.
-
IFRS 18 Impact:Expected to reduce operating profit by approximately CHF20 million starting in 2027.
Release Date: July 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Schindler Holding AG ( SHLAF ) achieved a record operating profit with an operating margin expansion of 90 basis points to 13.2% in the first half of 2026.
-
Order intake grew by 2.9% in local currencies, with strong contributions from the modernization business, which saw growth close to 13%.
-
The company maintained its full-year guidance, expecting an acceleration in revenue growth in the second half of the year.
-
Schindler's modular platform is gaining traction, improving field installation efficiencies and supporting market share gains, particularly in Europe.
-
The modernization business continues to perform well, with double-digit growth across all regions, supported by government programs in countries like China and Spain.
Negative Points
-
Revenue growth was only 1.4% in the first half of the year, which is below expectations, driven by a softer development in the new installation segment.
-
China remains a significant headwind, with declining order volumes in the new installation business, impacting overall growth.
-
The company is facing additional cost inflation from logistics, fuel, and commodities, with expected impacts of CHF35 million for the full year.
-
Operating cash flow in the first half was below last year's level due to adverse net working capital developments, particularly in China and the US.
-
The implementation of IFRS 18 is expected to reduce operating profit by approximately CHF20 million annually, impacting future financial statements.
Q & A Highlights
Q: Can you elaborate on the growth in original equipment outside of China, specifically regarding the high single-digit growth in value and low double-digit growth in volume? Is this due to negative pricing or regional mix? A: Paolo Compagna, CEO, explained that there is no significant price decline outside of China beyond the usual competitive environment. The growth is broad-based across regions, with Europe standing out due to the modular platform rollout. The efficiency improvements from this platform are expected to continue contributing positively.
Q: Regarding IFRS 18, the change in operating profit by CHF20 million, is that for the full year or just H1? A: Carla De Geyseleer, CFO, clarified that the CHF20 million impact is for H1, so it would be approximately CHF40 million for the full year.
Q: How do you plan to address the competitive situation in North America, particularly in the service sector? A: Paolo Compagna, CEO, stated that the modular platform will help improve competitiveness in North America. The company remains selective in capturing units, focusing on value rather than volume, and expects the modular platform to enhance their position in new installations, modernization, and service.
Q: Can you provide some color on modernization growth by region and its contribution to sales? A: Paolo Compagna, CEO, mentioned that modernization is growing well in all regions, including China, with double-digit growth. However, specific contributions to sales are not disclosed.
Q: What is the situation regarding payment terms and bad debt allowances among Chinese customers? Are there any concessions with down payments? A: Carla De Geyseleer, CFO, confirmed that Schindler does not make concessions with down payments to avoid exposure to credit risk, applying the same rules for both modernization and new installations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
