Schindler (SCHN.S): Roadshow feedback: confident message on order margins

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Schindler (SCHN.S): Roadshow feedback: confident message on order margins

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22 Jul 2026 14:31:03 ET │ 17 pages

Schindler (SCHN.S)

Roadshow feedback: confident message on order margins

CITI'S TAKE

Buy We hosted Schindler CFO Carla de Geyseleer and IR Lars Brorson for a

roadshow in London. Key topics for investor discussion were order growth, Price (22 Jul 26 17:30) SFr241.00

particularly in modernization, price-cost, the Chinese market, self-help, Target price SFr322.00

industry M&A and capital allocation. Schindler's commentary around Expected share price return 33.6%

price-cost stands out vs peers, with not only backlog margin improving Expected dividend yield 2.9%

sequentially but also new order margins improving QoQ and 'substantially' Expected total return 36.5%

YoY, helped by modularization, selectivity and pricing. The modular

Market Cap SFr26,071M platform is now fully rolled out, but there are still margin benefits to come

US$32,080M given lead times. On capital allocation, the clear focus is on potential M&A

opportunities should these arise from the Kone/TKE transaction. We think

the share price reaction (shares -7% since reporting) is harsh; while the

sluggish construction market backdrop means that we don't see any Vivek Midha, CFAAC

major catalysts until the November CMD, we still see Schindler as +44-20-7500-0732

relatively cheap vs its quality and reiterate our Buy rating. vivek.midha@citi.com

Klas Bergelind

Modularization benefits still ongoing — Schindler's modular new installation +44-20-7986-4018

platforms are now fully rolled out (with Brazil and India now done), but given lead klas.bergelind@citi.com

times of ~18mths, the profitability benefits are still not complete. Procurement