John Deo

Schindler Forecasts Modest Growth for 2025 Amid Construction Slowdown

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    Posted by John Deo Feb 12 - Filed in General - #financialmodelingprep  - 14 views

    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

    \ud83d\udccc Schindler expects limited revenue expansion in local currency terms, given:

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

    \ud83d\udd39 Market Impact:

    • Companies reliant on new real estate development may face headwinds.
    • Service-based revenue models (like maintenance and upgrades) could outperform.

    \ud83d\udca1 Investor Tip: To analyze the overall industry and economic conditions impacting Schindler, you can refer to the Economics Calendar API, which provides macroeconomic indicators that influence business cycles and infrastructure investment.

    2. EBIT Margin Expected at 12% in 2025

    \ud83d\udccc The company forecasts an EBIT margin of ~12% for the year, slightly lower than Q4 2024 levels.
    \ud83d\udccc 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

    \ud83d\udd39 Market Impact:

    • Margin stability signals better cost control despite weaker revenue growth.
    • Tech-driven efficiencies could provide long-term profitability gains.

    \ud83d\udcca Want to analyze Schindler's financial performance in-depth? Check out the latest Balance Sheet Statements via the Balance Sheet API for insights into Schindler’s assets, liabilities, and equity trends.

    3. Q4 2024 Financial Performance

    \ud83d\udccc Quarterly sales reached 2.86 billion Swiss francs ($3.13 billion), missing analysts' expectations of 2.95 billion francs.

    \ud83d\udcca Key Figures (Q4 2024 vs. Q4 2023):

    • EBIT margin: 12.5% (↑ from 11.4%)
    • Revenue: 2.86B CHF (↓ below forecast of 2.95B CHF)

    \ud83d\udd39 Market Impact:

    • A weaker top-line performance may pressure investor sentiment.
    • Investors will watch modernization & service growth as key revenue drivers.

    Final Thoughts

    \ud83d\udccc Schindler’s 2025 growth outlook remains cautious, as new construction declines but services expand.
    \ud83d\udccc Investors should monitor:
    \u2705 Profitability trends amid cost optimizations
    \u2705 Service & modernization revenue as growth drivers
    \u2705 Macroeconomic factors affecting new construction