First Read Schindler Q2 26 Call: Worth working through the moving parts to see a solid H2 ahead

研报英文原文证据摘录

First Read Schindler Q2 26 Call: Worth working through the moving parts to see a solid H2 ahead

potentially distracted.

China NI. Schindler continue to expect market to be down 10%+. Comps get

easier in H2 while new product launches have started gaining traction in Q3

however market continues to be depressed.

Price-cost: Increasing list prices as well as surcharges in order to combat cost

inflation. Some uncertainty in raw material prices remain for H2. Schindler

successfully passed these on in H1 in Service and NI, however note that these costs

are likely to accelerate.

H2 revenue acceleration: Likely to be driven by strong new installation orders

seen in H1 in Europe and Asia ex-China, with backlog up 5.8% in H1.

IFRS18. Will affect statements from FY'27 onwards. We should expect a c40bps

full-year headwind from this accounting change based on H1 2026 pro-forma

disclosure so far.

Tariffs. Remain a moving picture. Estimate annual gross P&L impact to be largely

unchanged at CHF 15m.

FCF: Headwind in Q2 came from decline in China NI driving downpayments lower

as well as headwind from ERP system in US. The headwind from the latter should

reverse partly or completely in H2.

Q2 results recap

Q2 orders. Modernisation grew DD in H1 (on 22% comp). In NI, there was

good growth outside China at HSD in value and LDD in units, with particular

strength in Germany and Spain. The difference in value and volume growth

was driven by mix rather than price pressure. America NI was down due to

tough comps. YTD backlog was up MSD in EMEA and APAC (but down mid-

teens in China) and up HSD in Americas.

Q2 revenues. Came in at 1.1% for Q2, which was the lower end of

management expectations, driven by softer development in NI and timing in

large projects in Modernisation.