Schneider Electric (SU) CMD 2025 summary

Strategic vision, direction, and market positioning

• Launched a five-year plan focused on energy and industrial intelligence, leveraging electrification, digitalization, and AI to drive efficiency and sustainability across all sectors.

• Targeting organic revenue growth of 7%-10% CAGR through 2030, outpacing expected market growth, with a balanced global presence and a unique technology stack integrating hardware, software, and services.

• Digital and recurring revenues are expected to exceed 70% of group revenues by 2030, with software and services reaching 25%.

• Strong partnerships and ecosystem development, including collaborations with NVIDIA and Microsoft, and extensive customer and partner engagement to co-design next-generation solutions.

• Emphasized people, diversity, and employee engagement, with high participation in shareholding plans and a focus on talent development and upskilling.

Technology, innovation, and business model transformation

• Accelerating R&D investment to approximately 7% of sales, focusing on automation, digital solutions, and software-defined architectures.

• Launch of the first Energy & Industrial foundational model using Data Cube and digital twin technology, leveraging AI for customer value creation.

• Expanding the Digital Flywheel, aiming for over 70% of revenue from digital offers by 2030, and doubling recurring revenues from software and digital services.

• Advancing regionalization with multi-hub R&D, supply chain, and commercialization to enhance agility and local market responsiveness.

• Operational excellence driven by cost leadership, pricing, productivity, and digital transformation, with targeted restructuring to fund efficiency gains.

Financial guidance, capital allocation, and operational excellence

• Adjusted EBITA margin targeted to expand organically by +250 basis points cumulatively from 2026 to 2030.

• Cash conversion expected to remain strong at around 100% of net income for 2026-2030.

• ROCE ambition set at 15%-20% by 2030.

• Maintaining a progressive dividend policy, systematic share buybacks (€2.5–3.5bn), and active portfolio management with €1–1.5bn in disposals by 2030.

• Targeting 25% of group revenue from software and services, with recurring revenues set to double by 2030.