Schneider Electric (SU) Q4 2025 earnings summary

Executive summary

• Achieved record FY25 revenues of €40.2 billion (+9% organic), with all-time high free cash flow of €4.6 billion (111% conversion), and strong momentum in both Energy Management and Industrial Automation.

• Q4 revenue growth reached 10.7% organic, led by Data Center demand and broad-based regional growth, especially in North America.

• Digital Flywheel revenues grew 15%, now 62% of total revenue, advancing ahead of 2027 targets; recurring revenues in agnostic software at 79%.

• Recognized as a global leader in sustainability and operational excellence, surpassing key climate and social targets.

• Announced CFO transition: Hilary Maxson to be succeeded by Nathan Fast in April 2026.

Financial highlights

• Adjusted EBITA/EBITDA grew 12.3% organic to €7.52 billion, with margin expansion of 50 basis points to 18.7%, in line with guidance.

• Adjusted Net Income up 4% reported, 14% organic, to €4.8 billion; net income down 2% to €4.16 billion due to restructuring and impairments.

• Free cash flow reached €4.6 billion, with a conversion rate of 111%.

• ROCE surpassed 15% for the first time, reaching 15.1%.

• Dividend of €4.20 per share proposed (+8% YoY), continuing a progressive policy.

Outlook and guidance

• FY26 targets: organic revenue growth of 7%-10%, Adjusted EBITA/EBITDA growth of 10%-15%, and margin expansion of 50-80 basis points.

• All four end-markets and regions expected to contribute, led by Data Centers, U.S., and India.

• Gross margin expected to turn positive during 2026, with price actions to offset raw material and tariff headwinds.

• FX headwinds anticipated to impact FY26 revenues by €850-950 million and EBITA margin by -10bps.

• Medium-term (2026-2030): organic revenue CAGR of 7%-10%, cumulative EBITA margin expansion of 250bps, and 100% FCF conversion.