Finance
Liftmaker Schindler expects China's construction slump to persist through 2026
Published by Global Banking & Finance Review®
Posted on October 24, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 24, 2025
2 min readLast updated: January 21, 2026
Schindler expects China's construction slump to persist until 2026, affecting lift orders. CEO Compagna notes slight recovery signs in major cities.
By Bernadette Hogg
(Reuters) -Schindler expects the construction crisis in China, which has been dampening orders for new lifts and escalators for many quarters, to continue to hurt results also in 2026, its chief executive said on Friday.
"For 2026, we don't expect yet a big recovery," Schindler CEO Paolo Compagna told Reuters. He said that while there were some very little and early signs of recovery in the four major cities in China, the market was still declining in all other cities.
The Chinese economy has continued to struggle with a prolonged property crisis, after new construction starts fell by 23% last year.
Asked about industry sentiment in the world's second-biggest economy, Compagna said he had seen a tentatively positive mood when he last visited the country several weeks ago, but could not yet determine whether it was hope of recovery or a real improvement.
Compagna said he expected to see a changing trend in China over the coming years, with the market likely not returning to a high year-on-year growth rate but transforming into a more mature, solid market.
EFFICIENCY MEASURES BOOST MARGIN OUTLOOK
The Swiss lift and escalator maker raised its annual margin forecast on Friday, helped by more efficient operations and changes in prices and product mix. It now expects an operating profit margin of around 12.5% for the full year, after previously seeing it at around 12%.
It secured a margin of 12.5% in the first nine months of 2025, and 13% in the third quarter alone.
The group has been cutting costs through headcount reductions, procurement savings and by standardizing some of the ways it does lift repairs.
Schindler, like many companies across the world, is also seeking to implement artificial intelligence into its operations, although its impact is yet to be seen, Compagna said.
Notably, the company uses AI in its research and development processes, a contribution that is expected to steadily increase, he said, adding the applications being used were partially developed by Schindler and partially by its partners.
($1 = 0.7931 Swiss francs)
(Reporting by Bernadette Hogg in Gdansk, editing by Milla Nissi-Prussak)
A financial crisis is a situation in which the value of financial institutions or assets drops rapidly, leading to a loss of confidence and severe disruptions in the economy.
Economic growth refers to an increase in the production of goods and services in an economy over a specific period, typically measured by the rise in Gross Domestic Product (GDP).
Market trends are the general directions in which a market is moving, indicating whether prices are rising or falling over time, often influenced by economic factors and investor sentiment.
Investment is the act of allocating resources, usually money, in order to generate income or profit. It can involve purchasing assets such as stocks, bonds, or real estate.
A construction slump is a significant decline in construction activity, often characterized by reduced building permits, fewer construction projects, and lower demand for construction materials.
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