Quarterly Figures and Growth Drivers
Schneider Electric recorded organic revenue growth of 7.4% in the first quarter of 2025, reaching €9.33 billion. The strong demand for data centers in the energy management sector, which increased by 9.6%, contributed significantly to this growth. While the industrial automation sector experienced a slight decline of 0.9%, there are encouraging signs of recovery in China.
UBS Rating and Market Assessment
UBS has rated Schneider Electric with “Buy” and set a price target of €290. This positive assessment reflects confidence in the company’s growth forecasts. For the year 2025, an organic revenue growth of 7–10% is expected, supported by megatrends such as electrification and digitalization. Despite a moderate correction in the adjusted EBITA margin to 18.7–19.0%, due to currency effects, a margin increase of 10–15% is still anticipated.
Risks and Opportunities for Investors
Opportunities for investors lie in the ongoing demand for energy infrastructure for AI data centers and decarbonization projects. However, macroeconomic uncertainties and volatile currency effects could increase margin pressure. Nevertheless, these aspects underscore the resilience of Schneider Electric’s business model, a crucial factor for the positive UBS rating.