Half Year 2025 Schindler Holding AG Earnings Call Transcript
Key Points
- Schindler Holding AG (SHLAF) reported over 5% order growth in local currencies, with a significant 22% growth in their modernization business.
- The company achieved a strong operating margin of 12.3% for the first half of 2025, supported by SG&A efficiency initiatives and robust procurement and supply chain operations.
- Operating cash flow was strong at CHF703 million, up from last year's levels, indicating solid financial health.
- The new US mid-rise product launch received overwhelmingly positive customer feedback, with successful initial installations.
- Modernization markets are projected to experience continued growth worldwide, with double-digit growth in China due to government programs facilitating upgrades.
- Revenue growth was muted due to a steep decline in new installations in China, which fell by almost 30% in the quarter.
- Currency headwinds are impacting Schindler Holding AG (SHLAF) as the Swiss franc strengthens, posing challenges to financial performance.
- The company faces external headwinds from tariffs, with a gross impact estimated at approximately CHF20 million, which may not be fully offset in 2025.
- The global new installations market is anticipated to decline by high single digits, mainly due to a low-teens contraction in China.
- The company has increased its restructuring charges for 2025 to CHF70 million, up from the prior view of CHF50 million, impacting reported EBIT margins.
(Operator Instructions)
Ladies and gentlemen, welcome to the Schindler Half Year Results 2025 conference call and live webcast. I am Valentina, the Chorus Call operator. (Operator Instructions) And the conference is being recorded. The presentation will be followed by a Q&A session. (Operator Instructions) The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Lars Brorson, Head, Investor Relations. Please go ahead.
Thank you, Valentina. Good morning, ladies and gentlemen, and welcome to our first half 2025 results conference call. My name is Lars Brorson. I'm Head of Investor Relations section. I'm here together with Paolo Compagna, our CEO; and Carla De Geyseleer, our CFO.
Paolo will discuss the highlights of our first half results and our 2025 market outlook, and Carla will then take us through the financials. After the presentation, we are happy to take your questions. We place -- we plan to close the
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