Schneider Electric (SU) CMD 2025 summary

Strategic direction and market positioning

• Entering a new cycle focused on energy and industrial intelligence, leveraging electrification, automation, and digitalization.

• Emphasizing balanced geographic and end-market exposure, with a multi-hub strategy and strong local ecosystems.

• Differentiated by a unified technology stack (EcoStruxure), integrated services, and progressive digital transformation.

• Partnerships and customer-centricity are central, with deep collaboration across the value chain and lifecycle.

• Business model mix will be more balanced, with products, systems, software, and field services all contributing to growth.

Technology, innovation, and operational excellence

• Advancing technology leadership in energy and industrial intelligence, with a focus on software-defined architectures, AI-driven solutions, and digital twins.

• Launch of the first Energy & Industrial foundational model using Data Cube and digital twin technology.

• Targeting 70%+ of revenue from digital flywheel by 2030, with 25% from software and services, and doubling recurring revenues.

• Investing in R&D up to 7% of sales, with regionalized innovation and agile, mission-based management.

• Operational excellence prioritized through cost competitiveness, productivity, and scalable, simplified processes.

Financial guidance and growth outlook

• Organic revenue growth targeted at 7%-10% CAGR through 2030, outpacing expected market growth of 6%-7% CAGR.

• Data center segment expected to grow 12%-14% CAGR, with significant opportunities in buildings, industry, and grid.

• Adjusted EBITA margin to expand organically by +250bps cumulatively from 2026 to 2030.

• Free cash flow conversion targeted at ~100% of net income for 2026-2030, with ROCE ambition upgraded to 15%-20% by 2030.

• Capital allocation priorities include progressive dividends, systematic share buybacks (€2.5–3.5bn), selective M&A, and €1–1.5bn in portfolio pruning by 2030.