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Swiss elevator and escalator company Schindler projects modest revenue growth in 2026, as demand improves in Germany and other markets while China continues to struggle under a prolonged real estate slowdown. Weak new installations and overcapacity in China remain a significant challenge after two consecutive years of decline. Growth in the Americas and Asia Pacific, along with operational improvements and cost discipline, are expected to support overall performance. The company also plans to maintain dividends, reflecting a stable financial strategy despite market uncertainties.
Swiss elevator and escalator maker Schindler expects low- to mid single-digit revenue growth in local currencies for 2026. The company's forecast reflects the combined effect of improving demand in certain regions and ongoing weakness in China. While new installations are anticipated to rise in Germany, contributing to revenue, China continues to experience slow construction activity, which has remained subdued for two years due to overcapacity and soft property demand. Advertisement
Schindler's Chief Executive, Paolo Compagna, noted that China's market still faces hurdles, with no significant rebound expected in the near term. Construction starts in the country fell more than 20% last year, continuing the trend from the previous year, which continues to weigh on new equipment sales.
In Europe, demand in Germany is showing early signs of recovery. Apartment building permits have increased, and government initiatives supporting infrastructure modernization are expected to gradually stimulate construction activity. However, Schindler remains cautious about the speed and magnitude of the recovery, highlighting that growth will likely be gradual rather than rapid.
The company reported fourth-quarter 2025 sales in line with analyst expectations, with stronger performance in the Americas and Asia Pacific helping offset weakness in China. Operational improvements, including pricing discipline, efficiency initiatives, and selective bolt-on acquisitions, are planned to manage cost pressures and market uncertainties, such as rising commodity prices and tariffs.
Schindler has a history of addressing operational challenges with a focus on modernization, efficiency, and stable margins. Despite China's market lagging behind other regions, these measures have helped sustain performance in the Americas, Europe, and Asia Pacific. The company also intends to continue its ordinary dividend and proposes an additional extraordinary dividend for shareholders, signaling a commitment to balanced financial management.
Source Reuters
5th Jun, 2025
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