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Schindler Holding AG (CH:SCHP)
:SCHP
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Schindler Holding AG
(SCHP)
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Rating:71Outperform
Price Target:
CHF292.00
▲(10.44% Upside)
Action:UpgradedDate:02/18/26
The score is driven primarily by strong financial fundamentals (low leverage, solid cash generation, improved profitability) and supportive 2026 guidance for continued margin progress. These positives are tempered by weak technical momentum (below key moving averages, negative MACD) and a relatively high P/E, with ongoing macro/FX and China New Installation risks highlighted on the earnings call.
Positive Factors
Conservative balance sheet
Schindler's low leverage and steadily rising equity provide durable financial flexibility. A conservative balance sheet supports continued dividends, buybacks, targeted capex and restructuring absorption without stressing liquidity, strengthening resilience through cycles.
Strong cash generation
Consistently high free cash flow and strong conversion of earnings underpin long-term funding for modernization, service expansion and shareholder returns. Reliable cash flow smooths cyclical new-installation volatility and funds strategic investments and debt reduction.
Modernization & service momentum
Double-digit Modernization growth and rollout of standardized packages drive higher-margin, recurring project opportunities. Combined with expanding connected-service penetration, this shifts mix toward recurring, less cyclical revenue, improving margin sustainability and lifetime customer value.
Negative Factors
New Installation weakness (China)
Heavy exposure to New Installation cyclical activity, particularly China, creates persistent top-line risk. Extended weakness in Chinese housing starts materially reduces large-project wins and backlog replenishment, constraining sustainable revenue growth and pressuring utilization.
Material currency headwinds
Significant FX translation losses show the company's reported results are sensitive to currency moves. A strong Swiss franc can structurally depress reported revenue and margin unless pricing and hedging offsets are sustained, complicating multi-year planning and comparability.
Restructuring and selectivity drag
Ongoing reorganization and increased project selectivity reduce near-term NI conversions and create recurring restructuring expense. While intended to improve long-term margins, these actions can depress reported growth and delay revenue recovery as the business resets commercial coverage and execution.
Schindler Holding AG (SCHP) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF27.33B
Dividend Yield2.01%
Average Volume (3M)94.01K
Price to Earnings (P/E)31.6
Beta (1Y)0.62
Revenue Growth-2.07%
EPS Growth9.68%
CountryCH
Employees70,162
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.44
Shares Outstanding40,716,830
10 Day Avg. Volume81,492
30 Day Avg. Volume94,006
Financial Highlights & Ratios
PEG Ratio4.29
Price to Book (P/B)6.34
Price to Sales (P/S)2.93
P/FCF Ratio23.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF314.37Price Target Upside18.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)10.48
Revenue Forecast (FY)CHF11.16B
Schindler Holding AG Business Overview & Revenue Model
Company DescriptionSchindler Holding AG engages in the production, installation, maintenance, and modernization of elevators, escalators, and moving walks worldwide. It also offers digital media services for providing information, communication, and entertainment channels, such as Schindler Ahead DoorShow, which displays information, advertising, and announcements on the elevator landing doors; Schindler Ahead SmartMirror, a mirror and a screen for entertainment or information; Schindler Ahead AdScreen that delivers messages on screen inside the elevator; and Schindler Ahead MediaScreen, an in-car media solution for elevators. In addition, the company provides digital services, including Schindler Ahead ActionBoard that collates all the important statistics, activities, and performance data of elevators; and Schindler Ahead RemoteMonitoring which provides information about equipment's health. Further, it also offers s digital solutions for transit and building management. The company provides its products and services to residential buildings, office buildings, hotels, healthcare facilities, malls and retail facilities, public transport locations, mixed-use buildings, institutional buildings, and marines, as well as stadiums, arenas, and convention centers. Schindler Holding AG was founded in 1874 and is based in Hergiswil, Switzerland.
How the Company Makes MoneySchindler primarily makes money through two major revenue streams: (1) New installations and related project work, and (2) after-sales services. In new installations, Schindler sells and installs new elevators and escalators, typically as project-based contracts tied to new construction or major building works; revenue is earned from the sale of equipment and the installation/commissioning services. In after-sales, Schindler generates recurring revenue from maintenance contracts that cover routine inspections, preventive maintenance, callouts/repairs, and service labor. A significant additional service revenue stream comes from modernization, where Schindler upgrades or replaces components (or entire units) in existing buildings to improve performance, safety, compliance, and energy efficiency; these projects are generally higher value than routine maintenance and can be driven by regulatory requirements, aging installed base, and customer preferences for improved features. The company’s earnings are supported by its large installed base, which tends to produce ongoing maintenance and repair demand over the multi-decade life of elevators and escalators, helping smooth cyclicality compared with new equipment sales. If details on specific partnerships materially contributing to earnings are required: null.
Schindler Holding AG Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call communicated a clear operational recovery milestone with strong profitability improvement (12.6% EBIT margin), robust cash generation (CHF 1.5bn) and concrete product and digital progress (standardized platforms, U.S. ERP, Modernization momentum). At the same time, growth was constrained by a pronounced New Installation decline—primarily in China—material FX headwinds (>CHF 450m), and continued restructuring/tariff/commodity pressures. Management provided constructive 2026 guidance (low‑to‑mid single‑digit revenue growth in LC and 13% EBIT) and a plan to accelerate profitable growth, indicating a transition from recovery to growth execution.Q4-2025 Updates
Positive Updates
Sustained Margin Recovery
Reported EBIT margin reached 12.6% for FY25 (13.0% in Q4), marking the 12th consecutive quarter of year‑on‑year EBIT margin improvement and exceeding the initial annual expectation (~12%).
Strong Operating Cash Flow and Balance Sheet
Operating cash flow was CHF 1.5 billion for the year (CHF 523 million in Q4) with net liquidity of CHF 3.9 billion, enabling shareholder returns and reinvestment.
Shareholder Returns
Board proposed an ordinary dividend of CHF 6.00 and an extraordinary dividend of CHF 0.80 (total CHF 6.80); payout ratio ~72%. Share buybacks executed: ~700,000 shares for CHF 200 million in 2025.
Modernization Momentum
Modernization orders increased 19% for FY25 (15% in Q4) and Modernization revenue rose 12% for the year (22% in Q4). Backlog and execution capacity were expanded and rollout of standardized MOD packages delivered strong traction.
Product & Operational Improvements
Rollout of standardized modular NI platform completed as planned; U.S. mid‑rise product outperformed expectations in 2025. U.S. ERP implementation completed, enabling further operational efficiencies.
Service Portfolio Growth and Connectivity
Maintenance portfolio value grew mid‑single digits in 2025 with units expanding (strongest growth in APAC ex‑China). Over 40% of equipment is cloud‑connected, with a significant (though country‑variable) portion contributing paid services.
Sustainability Recognition
Schindler received EcoVadis Platinum (top 1% of >150,000 companies) and inclusion on the CDP A list, demonstrating strong ESG credentials.
2026 Guidance and Strategic Focus
Company guides to low‑ to mid‑single‑digit revenue growth in local currency for 2026 and a reported EBIT margin target of 13%, with a clear focus on accelerating profitable growth (Modernization expected to grow double‑digit in 2026).
Negative Updates
New Installation (NI) Weakness
Global New Installation order volumes declined by over 10% in FY25 and over 15% in Q4, driven primarily by China (NI down mid‑20s for the year and mid‑30s in Q4), which suppressed overall growth.
China Market Drag and Restructuring Impact
China continued to weigh on group growth despite strong MOD demand (China MOD ~+50%). Schindler undertook reorganization and selectivity in China, which reduced NI exposure and contributed to FY25 weakness; restructuring costs were CHF 54 million in 2025 (guidance up to CHF 60 million in 2026).
Currency Headwinds
FX translation headwinds exceeded CHF 450 million on order intake in 2025 due to Swiss franc strength vs major currencies, and management expects FX headwinds to intensify in the short term based on current spot rates.
Growth Softer Than Desired
Management acknowledged growth was 'a little softer' than desired; FY25 order growth in local currencies was 3.1% (5.4% excluding China), leaving a need to accelerate top‑line recovery.
Tariff and Commodity Pressure
U.S. tariffs estimated to have a gross annual P&L impact of around CHF 18 million (lower than a previous CHF 33 million estimate); raw material headwinds (copper, aluminium, some steel) could be CHF 15–20 million in 2026.
Selectivity Reduced NI Conversions in Americas
Deliberate increased selectivity on recaptures and large projects reduced NI conversions in the Americas, contributing to a modest decrease in maintenance unit growth in that region and softer NI orders.
Backlog and Execution Nuances
Order backlog rose modestly (+1.2% in LC) driven by MOD, while NI backlog weakness and the need to reprice U.S. backlog for tariffs indicate ongoing execution and margin management work (repricing underway).
Residual Drag from Non‑Core Initiatives
BuildingMinds remains a non‑material drag (but diminishing) and other one‑off/adjustment items (restructuring, selectivity) will continue to affect reported EBIT vs adjusted metrics in near term.
Company Guidance
Schindler guided 2026 to low- to mid-single-digit revenue growth in local currency and a reported EBIT margin of 13%, driven by company-level Modernization growth expected to be up double-digits (market-wide MOD seen as mid‑ to high-single-digit) and a stabilizing New Installation business (even though the global NI market is forecast to decline >5% owing to China’s NI contraction of >10% and Chinese home starts down ~20% y/y); Service markets are expected to continue expanding across all regions (2025 Service was mid-single-digit, with strongest growth in APAC/India and weakest in the Americas). Management quantified an annual gross tariff headwind of ~CHF 18m (versus an earlier CHF 33m estimate) to be largely mitigated by pricing/cost actions, expects up to CHF 60m of restructuring costs in 2026, anticipates the mix benefit from prior years to neutralize or turn slightly negative, and plans to deliver roughly the same overall level of incremental savings in 2026 as in 2025 (shifting more to field efficiencies to offset moderating procurement/SG&A gains); they also highlighted continued cash strength (net liquidity CHF 3.9bn) and proposed 2025 shareholder distributions of CHF 6 ordinary + CHF 0.80 extraordinary (72% payout).Schindler Holding AG Financial Statement Overview
Summary
Strong overall financial quality: improving profitability versus 2022, consistently solid free cash flow conversion, and a conservatively financed balance sheet with declining leverage and rising equity. Key risk is limited top-line growth and softer 2025 revenue/profit/cash flow versus 2024.Income Statement
Revenue has been broadly stable from 2020–2024 (low-single-digit fluctuations), with profitability trending better: net income rose from 610M (2022) to 950M (2024) and margins improved versus 2022 (net margin ~8.5% in 2024 vs ~5.4% in 2022). Operating profitability also strengthened (EBIT margin ~11.7% in 2024 vs ~7.8% in 2022). A key weakness is limited top-line growth recently (slight declines in 2023–2024), and 2025 shows lower revenue and profits versus 2024 (even though margin data isn’t provided for 2025).74
Positive
Balance Sheet
The balance sheet looks conservatively financed with low leverage: debt-to-equity improved from ~0.25 (2020–2021) to ~0.15–0.16 (2023–2024), and total debt declined to 678M in 2025 from 812M in 2024. Equity has steadily grown (3.89B in 2020 to 5.06B in 2025), supporting resilience. The main watch item is that total assets have been relatively flat, suggesting limited balance-sheet expansion, but overall leverage and capitalization are strong.83
Very Positive
Cash Flow
Cash generation is a clear strength, with consistently high free cash flow and strong conversion relative to earnings (free cash flow running at ~81%–93% of net income in 2022–2024). Operating cash flow and free cash flow remain solid in 2025 (1.49B and 1.38B), though both are down versus 2024 (1.60B and 1.49B), and free cash flow growth has been volatile year-to-year (notably weak in 2021–2022, strong in 2023–2024, then down in 2025).78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.95B | 11.24B | 11.49B | 11.35B | 11.24B |
| Gross Profit | 7.06B | 7.03B | 8.06B | 3.02B | 3.19B |
| EBITDA | 1.73B | 1.65B | 1.56B | 1.23B | 1.49B |
| Net Income | 1.01B | 950.00M | 866.00M | 610.00M | 828.00M |
Balance Sheet | |||||
| Total Assets | 11.72B | 12.00B | 11.31B | 11.81B | 11.97B |
| Cash, Cash Equivalents and Short-Term Investments | 4.27B | 4.07B | 3.57B | 3.44B | 3.82B |
| Total Debt | 678.00M | 812.00M | 699.00M | 1.04B | 1.09B |
| Total Liabilities | 6.58B | 6.95B | 6.60B | 7.36B | 7.54B |
| Stockholders Equity | 5.06B | 4.95B | 4.60B | 4.33B | 4.30B |
Cash Flow | |||||
| Free Cash Flow | 1.38B | 1.49B | 1.17B | 558.00M | 1.18B |
| Operating Cash Flow | 1.49B | 1.59B | 1.27B | 688.00M | 1.31B |
| Investing Cash Flow | -447.00M | -476.00M | 44.00M | -646.00M | -374.00M |
| Financing Cash Flow | -1.22B | -882.00M | -1.05B | -683.00M | -614.00M |
Schindler Holding AG Technical Analysis
Negative
264.40
Price Trends
294.05
Negative
291.91
Negative
295.02
Negative
Market Momentum
-7.47
Positive
23.75
Positive
19.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SCHP, the sentiment is Negative. The current price of 264.4 is below the 20-day moving average (MA) of 282.07, below the 50-day MA of 294.05, and below the 200-day MA of 295.02, indicating a bearish trend. The MACD of -7.47 indicates Positive momentum. The RSI at 23.75 is Positive, neither overbought nor oversold. The STOCH value of 19.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:SCHP.
Schindler Holding AG Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | CHF1.96B | 54.72 | ― | 2.17% | 11.43% | 6.46% | |
73 Outperform | CHF3.45B | 15.87 | ― | 2.99% | -11.64% | -24.17% | |
71 Outperform | CHF27.33B | 31.57 | 21.01% | 2.01% | -2.07% | 9.68% | |
64 Neutral | CHF15.22B | 53.97 | 32.09% | 1.63% | 19.22% | 11.62% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | CHF1.23B | 33.61 | ― | 1.46% | -3.67% | -12.95% | |
49 Neutral | CHF3.30B | 42.66 | ― | 2.53% | -24.42% | 32.48% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.