Sales of 11.46 billion euros… Increased sales and adjusted EBITA by 17.9% compared to the previous year, simultaneously raising growth targets
Schneider Electric has raised its annual growth forecast thanks to increased demand for power and cooling equipment for data centers. Investment in AI infrastructure led to sales of related equipment, recording the highest quarterly sales.
Schneider announced on the 16th (local time) that its third quarter sales were 11.46 billion euros, an increase of 17.9% from the same period last year. The organic growth rate, excluding changes in the scope of consolidation due to exchange rates and acquisitions and sales, is 16.9%.
This year's organic sales growth target was raised from 10 to 13% to 12 to 14%. The adjusted EBITA growth target was also raised from 14-19% on an organic basis to 18-21%. EBITA refers to profit before interest, taxes, and intangible asset amortization.
Sales by business increased by 18.8% on an organic basis for energy management and 8.1% for industrial automation. By region, China and East Asia grew by 26.1%, and North America grew by 19.9%. In the energy management business, China experienced double-digit growth thanks to investment in AI infrastructure. The company explained that growth was supported by data center projects in Southeast Asia and the semiconductor sector in Korea and Taiwan.
The impact of data center demand was noticeable in the system business. The systems business, which accounts for 35% of total sales, grew by 22% on an organic basis. The company explained that pre-made solutions, three-phase uninterruptible power supplies (UPS), and cooling facilities were strong.
Product line expansion in response to cooling demand continues. Schneider unveiled a 2.5MW coolant distribution unit (CDU) through Motivear in January of this year. This product is aimed at high-density AI data centers and high-performance computing environments, and can configure a cooling system of more than 10MW by integrating and operating multiple equipment with its own software. The expansion of the cooling product line can be read as a business strategy to support both power supply and heat management.
The company expected that data center demand would continue to be strong in the fourth quarter and that the system business would lead growth. We plan to respond to raw material prices and tariff burden with pricing policies. Pressure on the supply chain due to the situation in the Middle East and the possibility of rising prices were cited as variables.
