This article first appeared on GuruFocus .
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Order Intake Growth:Increased by close to 3% in Q1.
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Modernization Order Intake:Up 15% in the quarter.
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Total Group Revenue Growth:Grew 1.7% in Q1.
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Operating Margin:Expanded by 100 basis points to 13% in Q1.
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Operating Cash Flow:Over CHF500 million in Q1.
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FX Headwind:Over CHF200 million impact on order intake, 7% FX headwind.
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Revenue Impact from FX:More than CHF180 million in Q1, close to 7% impact.
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Net Profit Margin:Moved into double digits.
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Order Backlog Growth:Up 2.5% year-on-year, 3% sequentially in local currency.
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EBIT FX Impact:Minus CHF23 million in Q1.
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Operational Improvements:Plus CHF33 million in Q1.
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Operating Cash Flow:CHF532 million for the quarter.
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Cost Inflation Estimate:Up to CHF50 million additional cost inflation annually.
Release Date: April 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Schindler Holding AG ( SHLAF ) reported a 3% growth in order intake for Q1 2026, driven by strong product momentum and improvements in field installation efficiencies.
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The company's modernization segment saw a significant 15% increase in order intake, with double-digit revenue growth across all regions.
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Operating margin expanded by 100 basis points to 13% in Q1, indicating strong operational performance.
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Schindler Holding AG ( SHLAF ) achieved a net profit margin in double digits, reflecting effective cost management and operational improvements.
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The company received the ESG Award '26 for its low-carbon emission steel elevator pilot, highlighting its commitment to sustainability and innovation.
Negative Points
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Revenue growth was modest at 1.7% in Q1 2026, with the new installations business experiencing a high single-digit decline, particularly impacted by challenges in China.
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The company faced significant foreign exchange headwinds, with an FX impact of over CHF200 million on order intake due to the appreciation of the Swiss franc.
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Schindler Holding AG ( SHLAF ) is experiencing additional cost inflation pressures from logistics, fuel, energy, and commodities, which could impact profitability.
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The geopolitical crisis in the Middle East has posed challenges for new installation deliveries, although the region contributes less than 2% to the company's revenue.
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Despite strong performance in modernization, the company has not revised its market outlook upwards, citing uncertainties in global construction markets and potential impacts from geopolitical tensions.
Q & A Highlights
Q: Can you confirm if the industry attitude towards pricing has changed structurally to handle inflation better, and do you have contract price escalation clauses in place? A: Yes, the industry has learned from past inflationary periods, and we are now more proactive with pricing. We have established discipline in contracts and are applying surcharges where possible to address rising costs. However, the timing of these pricing actions will vary across different segments.
Q: How did US service orders perform in Q1, and what is the outlook for this segment for the rest of the year? A: In value terms, we grew in the Americas, including the US. However, there was a slight decrease in units due to selectivity in rebooking larger accounts. We expect to catch up on unit growth throughout the year.
Q: Can you provide an update on the efficiency savings and the expected timeline for service regulation changes in China? A: We expect approximately CHF200 million in efficiency savings, mainly from supply chain and procurement. Regarding China, service regulation changes have been postponed and are expected to be enforced by the end of next year, with potential impacts in 2028.
Q: What is driving the strong order intake in Europe, and do you expect any market share gains? A: Europe, particularly Northern Europe, showed high single-digit order growth. This is driven by underlying market developments and a pickup in larger project orders. We are pleased with the growth, including in Germany, and expect continued positive contributions.
Q: How are you managing cost inflation, particularly regarding raw materials like steel? A: We have locked in steel prices for the longer term, reducing volatility for the remainder of the year. Price increases for new orders are more general and not tied to a single component, reflecting various cost pressures.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
