Schindler Forecasts Modest Growth for 2025 Amid 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, given:

• Declining demand in new construction projects
• Stronger momentum in modernization & service segments

🔹 Market Impact:

• Companies reliant on new real estate development may face headwinds.
• Service-based revenue models (like maintenance and upgrades) could 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% in Q4 2023), 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 ($3.13 billion), missing analysts' expectations of 2.95 billion francs.

📊 Key Figures (Q4 2024 vs. Q4 2023):

• EBIT margin: 12.5% (↑ 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 & service growth as key revenue drivers.

Final Thoughts

📌 Schindler's 2025 growth outlook remains cautious, as new construction declines but services expand.
📌 Investors should monitor:
✅ Profitability trends amid cost optimizations
✅ Service & modernization revenue as growth drivers
✅ Macroeconomic factors affecting new construction