Schneider Electric (SU) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues reached €9,721 million to €10 billion, up 9.0% organically year-over-year, led by Energy Management and a return to growth in Industrial Automation, with all four regions contributing.

• Energy Management delivered €8 billion in Q3 revenues (+9.7% organic), while Industrial Automation contributed up to €2 billion (+6.0% organic), driven by strong Data Center demand and grid infrastructure investments.

• Strong demand was observed in non-residential buildings, data centers (especially in North America and China), and discrete automation.

• Full-year 2025 financial targets reaffirmed, despite ongoing geopolitical and macroeconomic uncertainties.

Financial highlights

• Q3 revenue was €9,721 million to €10 billion, up 9.0% organically year-over-year.

• Products accounted for 48% of Q3 revenues (+3% organic), Systems 34% (+19% organic), and Software & Services 18% (+8% organic); AVEVA ARR up 12%.

• North America led with 14.5% organic growth, followed by Asia-Pacific at 6.4%, Western Europe at 5%, and Rest of World at 5.7%.

• Foreign exchange had a negative impact, with FY 2025 revenue FX impact estimated at -€1.4 to -€1.5 billion and -50bps on adjusted EBITA/EBITDA margin.

Outlook and guidance

• 2025 adjusted EBITA/EBITDA growth targeted at +10% to +15% organic, with revenue growth of +7% to +10% organic.

• Adjusted EBITA/EBITDA margin expected to improve by 50–80bps, reaching 18.7%–19.0%.

• Expected to finish toward the lower half of both revenue and margin guidance ranges, reflecting tough comparables and market consensus.

• Free cash flow generation approaching 100% conversion of net income (Group share) in 2025.

• Pricing actions are expected to continue, but full offset of tariffs and inflation is not anticipated within the calendar year.