By Bartosz Dabrowski and Bernadette Hogg
(Reuters) -Swiss lift and escalator maker Schindler on Wednesday forecast low single-digit revenue growth and improved margins for 2025, as the services market grows while new construction activity remains subdued.
Schindler’s margins began to show a recovery in 2024, driven by improved pricing and restructuring measures, including a digitalisation programme.
The company said it expected its earnings before interest and tax (EBIT) margin to be around 12% this year.
The adjusted EBIT margin rose to 12.5% in the fourth quarter of 2024, up from 11.4% in the same period a year earlier.
Schindler said that while new installations fell globally, and notably in China, the country’s service market expanded and made up more than 10% of the company’s modernisation revenues in 2024.
Schindler is less exposed to China’s property crisis than its competitors like Finland’s Kone, with around 13% revenue exposure to the country.
Its fourth quarter sales fell 3.5% to 2.86 billion Swiss francs ($3.13 billion), below analysts’ average forecast of 2.95 billion francs in a poll compiled by Vara Research.
Fourth quarter orders were stable at 2.85 billion francs, but slightly missed consensus expectations of 2.88 billion francs.
Schindler said it would propose a dividend of 6 francs per registered share and per participation certificate, up from 5 francs last year.
($1 = 0.9131 Swiss francs)
(Reporting by Bartosz Dabrowski and Bernadette Hogg in Gdansk; Editing by Milla Nissi)
