Schneider Electric raises outlook as data centre boom drives record sales

The company now expects full-year organic revenue growth of 12-14%, alongside adjusted EBITA growth of 18-21%.

Schneider also forecasts an organic improvement in its adjusted EBITA margin of 100-120 basis points, implying a margin of 19.7-19.9%.

Revenues rose 17.9% to a record €11.46bn in the three months to September, with organic growth of 16.9%, as demand from data centres more than doubled.

Sales in its Energy Management division, which accounts for the bulk of group revenues, rose 18.8% organically to €9.62bn, helped by strong demand for electrical distribution, cooling and power management equipment used in data centres.

Industrial Automation revenues increased 8.1% organically to €1.85bn, supported by a recovery in factory automation demand.

All four geographic regions recorded growth, led by China and East Asia, where organic revenues jumped 26.1%, and North America, up 19.9%. Europe delivered growth of 8.6%.

Chief executive Olivier Blum said: "As expected, data centres remained a key growth driver as we continue to execute on our backlog while seeing triple-digit demand growth in the quarter, providing increasing visibility into 2027 and 2028."

He added that demand remained healthy across all four end-markets, supporting another record order backlog at the end of September.

Looking ahead, Schneider expects continued momentum across its businesses in the fourth quarter, although it warned that disruption in the Middle East could put pressure on global supply chains and increase inflation.

The group also highlighted its recently announced $22.6bn agreement to acquire US industrial software company PTC, which it said would strengthen its position in industrial artificial intelligence and digital technology.