Schindler Earnings: Order Intake Shows Strength Against a Challenging Market Context

Wide-moat Schindler achieved strong constant-currency sales growth of 15% in the second quarter, with a robust order book supporting new equipment and modernisation revenue. Schindler’s service business also grew strongly across all geographies, bolstering second-quarter top-line growth. Our expectations for Schindler remain largely unchanged, forecasting full-year net profit of CHF 899 million, at the top end of Schindler’s CHF 860 million-CHF 900 million guided range. Investors welcomed the result with Schindler shares up 5% at the time of writing, having likely warmed to the strength of Schindler’s second-quarter new order intake—relative to peers and against a difficult market environment for new equipment. Schindler shares screen as approximately fairly valued, trading at a 2% discount to our unchanged CHF 210 fair value estimate.