Schneider Electric (SU) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues reached €9,721 million, 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 €8,039 million in Q3 revenues (+9.7% organic), driven by strong data center demand and grid infrastructure investments, while Industrial Automation contributed €1,682 million (+6.0% organic), supported by manufacturing recovery and AVEVA performance.

• The company reaffirmed its 2025 financial targets, maintaining focus on electrification, automation, and digitalization despite ongoing geopolitical and macroeconomic uncertainties.

• Strong demand was observed in non-residential buildings, data centers (especially in North America and China), and discrete automation, with robust performance across most end-markets.

• Sustainability milestones were surpassed, including a 53% CO2 reduction from top suppliers and over 60 million people gaining access to green electricity.

Financial highlights

• Q3 2025 revenue was €9,721 million, up 9.0% organically and 4.4% reported, with all regions contributing positively.

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

• North America led with 14.5% organic growth, followed by Asia-Pacific at 6.4%, Western Europe at 5.0%, and Rest of World at 5.7%.

• Foreign exchange had a negative impact, with a full-year estimated top-line impact of -€1.4 to -€1.5 billion and -50bps on adjusted EBITA margin.

• Scope changes (acquisitions/disposals) added +0.9% to Q3 revenue.

Outlook and guidance

• 2025 adjusted EBITA growth targeted at +10% to +15% organic, with revenue growth of +7% to +10% organic and adjusted EBITA margin expected at 18.7%–19.0% (+50–80bps improvement).

• Free cash flow generation is expected to approach 100% conversion of net income (Group share) in 2025.

• All regions are expected to contribute to growth, led by the U.S., India, and Middle East & Africa.

• The company expects to finish toward the lower half of both revenue and margin guidance ranges due to tough comparables and FX headwinds.

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