JPM expects 2026 to bring higher margins for elevator makers

Schindler Holding AG

06/01/2026 12:07

** JP Morgan expects the global elevator market to enter period of "structurally higher margins" following several hard years due to downturn in Chinese construction

** "The setup for the sector overall is better heading into 2026 than it has been for years. As for the elevator vertical, its best-in-class return on capital profile and expanding margin story has been overlooked in recent years," JPM says

** The broker resumes coverage of Schindler SCHP.S with "overweight" rating, citing the Swiss liftmaker's favourable exposure to residential real estate in Europe and U.S. offices

** It resumes coverage of Kone KNEBV.HE with "neutral", seeing relatively greater gain opportunities elsewhere in the sector despite being positive on the Finnish company's equity case

** Sector outlook in the U.S., EU and Asia Pacific is set to improve while decline in China seems "less severe" than in prior years, JPM says

 (Reporting by Danny Callaghan)

 ((danny.callaghan@thomsonreuters.com))