Finance
Schindler Offsets Rising Costs From Middle East Conflict With Price Hikes, Surcharges
Published by Global Banking & Finance Review®
Posted on April 23, 2026
2 min readLast updated: April 23, 2026
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Schindler is raising prices and applying surcharges to counter surging energy, logistics, fuel and raw‑material costs driven by the Middle East conflict. Logistics and fuel alone will cost around CHF 15 million each, with energy under CHF 1 million, while raw‑material inflation remains at CHF 15–20
Schindler Counters Middle East Conflict Costs with Price Hikes and Surcharges
By Bernadette Hogg
Schindler's Strategy to Offset Rising Costs Amid Middle East Conflict
April 23 (Reuters) - Swiss elevator maker Schindler is working on pricing actions and applying surcharges where possible to offset cost pressures, as energy and logistics costs have spiked due to the conflict in the Middle East.
Cost Pressures and Inflation Drivers
Schindler CEO Paolo Compagna said on a call with analysts that the company was facing additional cost inflation in terms of logistics, fuel and energy costs and commodities.
Breakdown of Increased Expenses
The company's finance chief, Carla De Geyseleer, said logistics and fuel costs would add approximately 15 million Swiss francs ($19 million) each to annual costs, while energy would add costs of less than one million Swiss francs.
Raw Material Cost Outlook
For raw materials, De Geyseleer said there was no change to the estimated 15 to 20 million annual cost inflation the company had communicated in February.
Impact on Sales and Operations
Compagna said that, while the top line impact of the Middle East remained modest as sales in the region make up less than 2% of total sales, serving customers had become challenging, particularly for new installations.
Logistics Challenges and Solutions
He said the company had around 200 units produced on hold or in transit which they are looking to deliver via alternative routes.
($1 = 0.7844 Swiss francs)
(Reporting by Bernadette Hogg; Editing by Matt Scuffham)
Key Takeaways
- •Schindler CEO Paolo Compagna confirmed increased logistics, fuel and energy cost pressures stemming from the Middle East conflict, prompting pricing adjustments and surcharges.
- •CFO Carla De Geyseleer quantified the cost impact: logistics and fuel approximately CHF 15 million each, energy under CHF 1 million, and raw‑material inflation unchanged at CHF 15–20 million annually.
- •Sales in the Middle East remain modest (under 2% of total), yet delivery challenges persist—about 200 units are delayed or held up, with alternative routes being explored.
References
Frequently Asked Questions about Schindler offsets rising costs from Middle East conflict with price hikes, surcharges
1How is Schindler addressing rising costs from the Middle East conflict?
Schindler is implementing pricing actions and applying surcharges to offset increases in logistics, fuel, and energy costs.
2What is the estimated additional cost impact from logistics and fuel?
Logistics and fuel costs are expected to add approximately 15 million Swiss francs each to Schindler's annual costs.
3How much do energy costs add to Schindler's annual expenses?
Energy costs are projected to contribute less than one million Swiss francs to Schindler’s annual cost increases.
4What portion of Schindler’s sales comes from the Middle East region?
Sales in the Middle East region make up less than 2% of Schindler's total sales.
5What challenges is Schindler facing in delivering new installations?
Schindler has around 200 units on hold or in transit due to difficulties serving customers in the Middle East, seeking alternative delivery routes.
