Revenue hits €11.46 billion, up 17.9% year-on-year
Full-year organic growth targets for revenue and adjusted EBITA upgraded simultaneously
Schneider Electric has raised its full-year growth guidance, buoyed by expanding demand for power and cooling equipment tailored for data centers. The company posted a record quarterly revenue as artificial intelligence infrastructure investments directly translated into robust equipment sales.
On October 16 (local time), Schneider announced that its third-quarter revenue reached €11.46 billion, marking a 17.9% increase compared to the same period last year. Excluding currency fluctuations and the impact of mergers and acquisitions, organic revenue growth stood at 16.9%.
The company upgraded its organic revenue growth target for the year to 12%-14%, up from its previous projection of 10%-13%. It also raised its organic adjusted EBITA (earnings before interest, taxes, and amortization) growth target from 14%-19% to 18%-21%.
By business segment, organic revenue in Energy Management grew by 18.8%, while Industrial Automation rose 8.1%. Regionally, China and East Asia grew by 26.1%, and North America by 19.9%. Within the Energy Management division, China achieved double-digit growth fueled by AI infrastructure investments. The company noted that data center projects in Southeast Asia and the semiconductor sector in South Korea and Taiwan underpinned regional growth.
The impact of data center demand was particularly pronounced in the Systems business. Accounting for 35% of total revenue, the Systems segment expanded by 22% organically. Schneider attributed this strength to pre-fabricated solutions, three-phase uninterruptible power supplies (UPS), and advanced cooling equipment.
The company is also continuously expanding its product portfolio to address surging cooling demands. In January of this year, Schneider unveiled a 2.5-megawatt (MW) coolant distribution unit (CDU) via Motivair. Designed for high-density AI data centers and high-performance computing environments, the system integrates multiple units using proprietary software to configure cooling systems exceeding 10 MW. This expansion in cooling solutions aligns with the company's strategic push to provide integrated power supply and thermal management.
Looking ahead, Schneider expects data center demand to remain robust in the fourth quarter, with the Systems business continuing to spearhead growth. The company plans to offset raw material costs and tariff pressures through strategic pricing. However, it flagged supply chain pressures stemming from Middle East tensions and potential inflationary risks as key variables to monitor.
