Published by Global Banking & Finance Review®
Posted on February 20, 2025
2 min readLast updated: February 27, 2026
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Schneider Electric projects higher 2025 profit margins due to strong data centre demand, forecasting an EBITA margin of 19.2%-19.5%.
By Anna Peverieri
(Reuters) - Electrical equipment maker Schneider Electric on Thursday forecast a bigger than expected rise in its 2025 profit margin, after strong demand from data centres boosted sales in the fourth quarter of last year.
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%, also above analysts' expectations.
Its shares rose 6.4% by 0806 GMT, with Jefferies analysts pointing to the "stellar" fourth quarter and "impressive" guidance in a note to clients.
The group's fourth quarter revenue rose 12.5% organically to 10.67 billion euros ($11.13 billion), beating consensus of 10.17 billion euros.
That increase was supported by a strong performance at its energy management division with 15.2% organic growth.
Quarterly demand and sales 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 growth.
The industrial automation business also returned to growth in the quarter, the group said, echoing comments from German peer Siemens that automation was showing early signs of a cyclical rebound.
Sales in North America, which makes up 36% of Schneider's revenue, grew 21.9% organically in the quarter, buoyed by the data centre end market and continued improvement on supply chain execution, it said.
Asked about U.S. tariffs, CFO Hilary Maxson said in a wire call that Schneider sources 17% of the materials used in North America from outside of the region. The company is prepared to take swift commercial actions to address any impact on its profitability, she added, but did not specify how big that impact might be or what those actions were.
($1 = 0.9590 euros)
(Reporting by Anna Peverieri in Gdansk; Editing by Milla Nissi)
Schneider Electric forecasts an adjusted EBITA margin of between 19.2% and 19.5% for 2025.
In the fourth quarter, Schneider Electric's revenue rose 12.5% organically to 10.67 billion euros, exceeding the consensus of 10.17 billion euros.
The revenue growth was supported by strong demand from data centres and a 15.2% organic growth in its energy management division.
North America accounts for 36% of Schneider Electric's revenue, with organic growth of 21.9% in the latest quarter.
CFO Hilary Maxson stated that Schneider sources 17% of materials used in North America from outside the region and is prepared to respond swiftly to any tariff impacts.
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