(Reuters) -French electrical equipment maker Schneider Electric confirmed its 2025 outlook on Thursday after reporting second-quarter revenue growth, buoyed by continued strong demand for its data
Schneider Electric Affirms 2025 Projections Amid Data Center Growth
Schneider Electric's Financial Performance and Future Outlook
(Reuters) -French electrical equipment maker Schneider Electric confirmed its 2025 outlook on Thursday after reporting second-quarter revenue growth, buoyed by continued strong demand for its data centre offering.
Revenue Growth and Market Segments
Revenues were up 8.3% organically to 10.01 billion euros ($11.43 billion). That compared with estimates of 9.99 billion and 7.5% organic growth in a company-compiled consensus. Revenues at its energy management business rose 10% organically.
Regional Performance Overview
The company confirmed its implied 2025 adjusted earnings before interest, taxes and amortization (EBITA) margin of between around 18.7% and 19%, compared with an estimate of 18.8%.
North America Growth
The guidance included the impact of trade tariffs enacted or announced to-date, the company said.
Impact of Trade Tariffs
The group, which has been benefiting from a shift toward electrification and heavy investment in data centres, said that the overall environment in data center segment continued to be very strong, with sales growing double-digit in the quarter.
It added that it saw good traction for its cooling offers, including for liquid cooling at its recently acquired U.S. company Motivair.
Schneider noted that demand at its non-residential segment remains strong, but its "relatively smaller" residential buildings segment continued to see a decline in demand.
All of its four regions reported growth in the quarter, Schneider said. Revenues in North America, which is its biggest market accounting for 38% of its second-quarter revenue, grew 12.5% organically.
The company has more than 20 factories and distribution centers across the U.S., including facilities in Texas, Ohio, Missouri, North Carolina.
($1 = 0.8758 euros)
(Reporting by Anna Pruchnicka; Editing by Matt Scuffham)
