Photo caption: Schneider
Electrical equipment maker Schneider Electric on Thursday forecast a bigger than expected rise in its 2025 profit margin, after its sales beat market expectations in the fourth quarter of last year boosted by strong data centre demand.
The French industrial giant guided for an adjusted earnings before interest, taxes and amortization (EBITA) margin of between 19.2% and 19.5%, supported by organic revenue growth of 7% to 10%. Analysts had forecast a margin of 18.8% and organic growth of 8.1% for 2025 in a company-compiled consensus.
In 2024, Schneider’s EBITA margin was 18.6% and organic growth 8.4%, above analysts’ expectations and its own guidance.
The group said its fourth quarter revenue rose 12.5% organically to 10.67 billion euros ($11.13 billion), beating analysts’ consensus of 10.17 billion euros.
The sales increase was supported by a strong performance at its energy management division with 15.2% organic growth.
Quarterly demand and sales both grew in a double-digit percentage in the data centre and network end market, Schneider said, adding that the pure data centre business continued to post strongest demand and sales growth.
The industrial automation business returned to growth in the quarter, the group added.
German peer Siemens last week flagged early signs of a cyclical turnaround within the automation sector and in China, a trend that would also support Schneider’s industrial automation business.
In terms of geographies, Schneider said all its regions contributed to revenue growth in the fourth quarter, led by North America.
In North America, which makes up 36% of the group’s revenue, sales were up 21.9% organically in the quarter, buoyed by the data centre end market and continued improvement on supply chain execution, it said.
The group also reaffirmed its medium-term organic revenue growth target of between 7% and 10% until 2027.
==== Reuters ====
