Schindler is a Swiss manufacturer of elevators and escalators. Beyond new installations, it earns recurring revenue from maintaining and modernizing a large installed base worldwide.
Present situation
Schindler’s quarterly results beat consensus on revenue, EBIT and margin. New installation orders came in higher than expected.
Opportunity analysis
The business model is attractive for long term investors: every elevator sold generates decades of maintenance contracts, and aging buildings create steady modernization demand. Stronger new installation orders feed the future service base. Points to watch: the sustainability of order intake, exposure to the Chinese property market, pricing and margin progression.
Investor outlook: Positive
A quality industrial with recurring service revenue and a visible order book, consistent with the preference for companies with pricing power in a selective European market.
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