Schindler (SCHP): H1 25 quick take
Schindler’s self‑help program is delivering
When Silvio Napoli returned to the CEO chair in 2022, Schindler was reeling from a series of self-inflicted wounds: ballooning supply-chain costs, sluggish execution in China, and an order backlog that threatened to erode profitability. Margins had slipped to levels that made investors question whether the Swiss elevator icon could ever regain its footing in an industry dominated by Otis and Kone.
Three years later, Napoli has delivered what many doubted possible—a clear reversal in fortune. The first half of 2025 reads like a case study in disciplined management. Revenue growth was modest, up 1.4% in local currencies to CHF 5.49 billion, but operating profit told the real story: EBIT margin surged 130 basis points to 12.3% (12.8% adjusted), lifting net income 8% to CHF 531 million and cash flow from operations to CHF 703 million. In other words, Napoli put profitability back at the center of the playbook.
How? First, he doubled down on pricing discipline in New Installations—where Schindler had been bleeding market share for years—and refused to chase unprofitable projects. “Better to hand out lifts for free than at a loss,” quipped one industry analyst, summarizing Napoli’s approach. The company shifted its mix toward modernization and service, segments where margins are richer and churn is lower. Supply-chain snarls were attacked head-on with procurement overhauls and tighter inventory control.
Second, he brought in CFO Carla De Geyseleer, whose mandate was crystal clear: rebuild financial muscle. Under her stewardship, Schindler drove a leaner cost structure and restored credibility in capital allocation. Together, they pushed New-Installations margins above 12%—a level considered unthinkable just a few quarters ago.
To be sure, Schindler isn’t at Otis’s lofty 16–17% operating margin or even Kone’s 12% target band. But the trajectory is undeniable, and there’s no structural reason why the Swiss player can’t close that gap. With execution tightening, a favorable service mix, and pricing discipline ingrained, Napoli has proven that Schindler’s comeback is more than just a lift—it’s a climb with altitude left.
Conclusion
Ex-CEO Silvio Napoli and CFO Carla De Geyseleer deserve a lot credit for hauling the NIM (New‑Installations) margin back into the “attractive” 12 %+ zone by squeezing costs, pricing smarter and shifting mix towards modernisation. A good base the new CEO Paolo Compagna and longtime buddy of Napoli can build on.
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