In This Article:
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Revenue: Declined 2.2% in local currencies for the full year 2024.
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EBIT Margin: Improved by 100 basis points to 11.3% for the year.
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Net Profit: Reached CHF 1 billion, a record for Schindler.
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Operating Cash Flow: CHF 1.6 billion for the year.
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Dividend: Proposed CHF 6 per share for 2024.
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Order Intake: Grew by 1.6% in local currencies in Q4 2024.
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Service and Modernization Growth: High single-digit growth in local currencies.
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China Revenue: Declined by over 20% in Q4 2024.
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Net Liquidity: CHF 3.7 billion at year-end.
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Share Buyback Program: CHF 42 million worth of shares bought back by year-end.
Release Date: February 12, 2025
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) achieved its 2024 outlook despite severe market headwinds, particularly in China.
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The company reported an EBIT margin improvement of 100 basis points compared to 2023, indicating strong operational efficiency.
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Schindler's service and modernization segments grew high single digits in local currencies, showcasing the resilience of its business model.
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The rollout of the standardized modular platform is progressing well, with successful implementation in key markets like Europe, India, and Brazil.
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Schindler reported a record net profit of over CHF1 billion in 2024, with strong cash flow generation allowing for increased shareholder distributions.
Negative Points
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The new installation market, particularly in China, faced significant declines, impacting overall revenue growth.
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Currency headwinds negatively affected financial performance, reducing order intake, revenue, and operating profits by over 3%.
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Revenue for the final quarter of 2024 was disappointing, with a decline of 3.5% in Swiss francs and 2.2% in local currencies.
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The order backlog was flat compared to the previous year, with a 2.2% decline in local currencies, indicating challenges in new installations.
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The Chinese market continues to pose challenges with a more than 10% expected decline in new installations for 2025, affecting overall growth prospects.
Q & A Highlights
Q: What are the most profound changes at Schindler over the past three years that position the company for the future? A: Paolo Compagna, CEO, highlighted the recreation of the product platform in new installations, the launch of a strong product base for modernization, and significant investments in the team as the most impactful changes. These efforts focus on people, products, and processes, setting a foundation for profitable growth.