Schindler (SCHN) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw continued operational momentum and margin expansion, with strong cash flow and order growth driven by modernization, despite FX headwinds and macro volatility from geopolitical tensions and inflationary pressures.

• Modernization orders and revenue grew over 15% year-over-year in local currency, supporting margin expansion across all regions except Asia-Pacific ex-China.

• EBIT margin improved to 13.0%, up 100 basis points year-over-year, with operating cash flow at CHF 532 million.

• Actions were implemented to mitigate Middle East crisis impacts and commodity inflation.

• Strategic focus remained on profitable growth and new product traction.

Financial highlights

• Q1 2026 order intake was CHF 2,826 million, down 4.1% in CHF but up 2.8% in local currency year-over-year.

• Revenue reached CHF 2,593 million, down 5.1% in CHF but up 1.7% in local currency year-over-year.

• EBIT was CHF 337 million (13.0% margin), up from CHF 329 million (12.0%) in Q1 2025; adjusted EBIT was CHF 343 million (13.2% margin).

• Net profit increased to CHF 262 million, with EPS at CHF 2.34.

• Operating cash flow reached CHF 532 million, slightly below last year’s exceptional Q1.

Outlook and guidance

• Full-year 2026 guidance confirmed: low-to-mid single-digit revenue growth in local currency and 13% EBIT margin.

• Modernization expected to maintain strong double-digit growth; service to grow mid-single digits; new installations to gradually recover.

• Margin guidance for 2026 set at 13%, driven by productivity improvements, especially in field efficiencies.

• Up to CHF 50 million in additional annual cost inflation anticipated, mainly from logistics, fuel, and raw materials.

• Headwinds remain from tariffs, China market pressures, mix impact, restructuring costs, and supply chain volatility.