Schneider Electric reaffirms 2025 outlook as data centre demand fuels revenue growth
French industrial giant Schneider Electric (SCHN.PA) has confirmed its 2025 financial outlook, citing continued strong demand in the data centre sector as a key driver of second-quarter growth.
The company reported an 8.3% organic increase in Q2 revenues, reaching €10.01 billion ($11.43 billion) — slightly ahead of consensus estimates of €9.99 billion and 7.5% organic growth. Its energy management division saw 10% organic growth, highlighting the rising global demand for power and automation solutions, News.Az reports, citing Reuters.
Schneider reaffirmed its 2025 guidance for an adjusted EBITA margin in the range of 18.7% to 19%, in line with previous estimates. The forecast includes the anticipated impact of recently enacted global trade tariffs.
Chief Financial Officer Hilary Maxson addressed the U.S. tariff situation, estimating additional costs in the range of “a couple of hundred million plus or minus,” but emphasized that the impact was “not highly material.” The company plans to raise prices in coming quarters to mitigate the impact.
North America, Schneider's largest market, contributed 38% of Q2 revenue, with 83% of its products sold in the region manufactured locally, Maxson added.
The company is riding a wave of investment in electrification and digital infrastructure, particularly as data centres expand rapidly worldwide. Schneider noted double-digit sales growth in this segment, with especially high demand for cooling technologies, including liquid cooling solutions from its recently acquired U.S. firm, Motivair.
Market Highlights
Strong performance in non-residential construction continued.
The residential buildings segment, though smaller, saw a decline in demand.
Company remains optimistic about pricing power and long-term demand for electrification solutions.
($1 = €0.8758)
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