Financial Energy Review
Electrical equipment maker Schneider Electric raised its profit margin forecast for 2025 on Thursday, reporting a stronger-than-expected sales performance in the fourth quarter of last year, driven by robust demand from data centers.
The French industrial giant projected an adjusted earnings before interest, taxes, and amortization (EBITA) margin between 19.2% and 19.5% for 2025. This was well above analyst expectations, which had forecasted a margin of 18.8%. The company also guided for organic revenue growth of 7% to 10%, surpassing market expectations of 8.1% growth.
“We are pleased with our performance in the fourth quarter, and our outlook for 2025 reflects the continued momentum in our core markets,” said Jean-Pascal Tricoire, CEO of Schneider Electric. “The strength of our data center business and the return to growth in industrial automation are key drivers of our future success.”
Schneider’s Q4 revenue rose 12.5% organically, reaching 10.67 billion euros ($11.13 billion), exceeding analysts’ consensus estimate of 10.17 billion euros. A standout performer was its energy management division, which saw organic growth of 15.2%. Demand in the data center and network markets continued to thrive, with the data center segment reporting the highest sales growth.
The company’s industrial automation sector also experienced a strong rebound, in line with broader trends observed in the industry. “We are seeing signs of a cyclical recovery in the automation sector, especially in markets like China,” Tricoire added.
North America led regional growth, with sales rising 21.9% in the quarter, bolstered by data center demand and improved supply chain execution. Schneider reaffirmed its medium-term target of organic revenue growth of 7% to 10% annually through 2027.
