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Schneider Electric — H1 2025 Earnings Presentation
43 slides from Schneider Electric's earnings presentation, Jul 31, 2025
Slide 1: Half Year 2025 Results - July 31, 2025
Half Year 2025 Results - July 31, 2025 Strong revenue growth in H1; accelerated momentum entering H2 FY25 Target reaffirmed Internal
Slide 2: Disclaimer
Disclaimer 3 HY 2025 All forward-looking statements are Schneider Electric Business Highlights management’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ 20 HY 2025 materially from those described in the forwa
Slide 3: HY 2025 Business Highlights
HY 2025 Business Highlights Olivier Blum | CEO Investor Relations – Schneider Electric Page 3
Slide 4: Our purpose and mission
Our purpose: Schneider’s purpose is to create Impact by #1 for the 2nd empowering all to make the most of our energy and resources, bridging progress and consecutive year sustainability for all. as the world’s most At Schneider, we call this Life Is On. sustainable Our mission: company in 2025 Our m
Slide 5: Focused execution drives strong revenue growth in Q2
Focused execution drives strong revenue growth in Q2 GROUP Q2’25 revenues Q2 org. growth €10bn +8.3% BY BUSINESS Energy Management Industrial Automation Q2’25 revenues Q2 org. growth Q2’25 revenues Q2 org. growth €8bn +10.5% €2bn -1.1% Investor Relations – Schneider Electric Page 5 General
Slide 6: Delivered performance aligned with expectations in H1
Delivered performance aligned with expectations in H1 with higher contribution expected in H2 GROUP Revenues Adjusted EBITA Adjusted Net Income (Group share) € 19.3bn € 3.5bn € 2.2bn +8% org. +7% org. +6% org. Gross margin Adjusted EBITA margin Free Cashflow 42.4% 18.2% € 0.5bn 1 -90bps org. -10bps
Slide 7: End-markets remain strong on structural drivers of growth
End-markets remain strong for medium and long-term on structural drivers of growth Data Centers & Networks Buildings Industry Infrastructure >10% +4% to +5% +5% to +6% +5% to +7% 2023-27 CAGR* 2023-27 CAGR* 2023-27 CAGR* 2023-27 CAGR* Key trends in focus: Key trends in focus: Key trends in focus: Ke
Slide 8: Specific focus areas in coming quarters
Specific focus areas in coming quarters Energy Management Industrial Automation Innovation and technology Capture growth from Discrete in H2 Offerings for New Energy Landscape Transition completion at AVEVA SF6-free and Motivair at scale Software-defined automation at scale Execute record-high backl
Slide 9: Digital Flywheel driving strong growth
Digital Flywheel driving strong growth, +4pts in % of Group revenues vs. H1 2024 SOFTWARE & DIGITAL SERVICES 1 8% Key achievements of H1 2025: • Innovation and AI deployment driving strong growth in Connectable Products 1 1 • Edge Control seeing good growth; traction for BMS across EDGE 9% 11% FIELD
Slide 10: Reinforcing our multi-hub strategy with 100% ownership of India JV
Reinforcing our multi-hub strategy with 100% ownership of India JV € 5.5bn India has been delivering strong revenue and margin growth since the initial acquisition of L&T E&A: 3rd largest country for the Group - “2 brands 2 sales” strategy To acquire the remaining 35% €2.5bn revenues in FY 20241 sta
Slide 11: Driving the future of data center designs
Driving the future of data center designs from grid to chip and chip to chiller • Our solution covers grid-to-chip and chip-to-chiller infrastructure, monitoring and management software, and services • For operational optimization to support the global deployment of AI workloads From room to row, ra
Slide 12: Accelerating AI factories at scale with NVIDIA
Accelerating the development and deployment of AI factories at scale with NVIDIA GTM Alignment NVIDIA’s DGX-Ready partners co-delivering training, playbooks, and enablement for AI-ready data centers Joint presence at key events to drive visibility and pipeline. Schneider Electric featured by NVIDIA
Slide 13: Leading in Buildings efficiency, leveraging BMS and AI
Leading in Buildings efficiency, leveraging BMS and AI in our own buildings and at customers' sites <100kWh/m2/yr ~30% of average world buildings energy consumption Apollo Proton Sidara The NEST, Dubai: Technopole, France: Cancer Centre, India: 150 Holborn, London: powered by EcoStruxure platform an
Slide 14: Customer-centric integrated service offers with AI-powered delivery
Customer-centric integrated service offers with AI-powered best-in-class delivery Capex to Opex to Recurring Experience Setting the path to be best-in-class for Service delivery, with AI-powered workforce Leveraging growing installed-base Increased recurring revenues Double Digit organic growth CAGR
Slide 15: Driving success for our customers
Driving success for our customers Infrastructure Data Center Industry Infrastructure India Saudi Arabia Australia India THE CHALLENGE THE CHALLENGE THE CHALLENGE THE CHALLENGE Upgrade and transform Tata’s power Deliver 144 MW hyperscale data center Design and build a hydrogen Modernize RVUN’s power
Slide 16: We continue to make responsible investments for the future
We continue to make responsible investments for the future CAPACITY INNOVATION AI AT SCALE 2.6% Tangible CapEx as % of 6.1% R&D cash spend as % of 365 AI-Hub employees revenues in H1’25 revenues in H1’25 H1 2025 new announcements1 • Dunavecse, Hungary 2025 selected Hero Offers: ~40 AI-powered use-ca
Slide 17: Growing impact of our Sustainability program
Growing impact of our Sustainability program 2025 2021-2025 Q1 Q2 Q3 Q4 Target Score 8.06 8.80 CLIMATE SSI #2 - Help our customers save and avoid 800 million tonnes of 1 CO2 emissions 734M In Q2, Schneider Electric solutions enabled customers to surpass the threshold of 700 million tonnes of CO₂ emi
Slide 18: External recognition in H1 2025
External recognition of our in H1 2025 Investor Relations – Schneider Electric Page 18 Internal
Slide 19: A differentiated value proposition
A differentiated value proposition – at the convergence of electrification and automation; IT and OT • Cross-selling of complementary offers across electrification & automation technologies • At the convergence of IT and OT with our open and agnostic software assets and leveraging AI • Deep domain e
Slide 20: HY 2025 Financial Performance Highlights
HY 2025 Financial Performance Highlights Hilary Maxson | CFO Investor Relations – Schneider Electric Page 20
Slide 21: H1 2025 Financial performance
H1 2025 Financial performance H1 aligned with expectations, with seasonality in adj. EBITA margin and cash Revenues Gross Margin Adj. EBITA Margin €19.3bn, +8% org. 42.4%, -90bps org. 18.2%, -10bps org. H1 revenues driven by strong growth in Gross Margin impacted by adverse mix and lag Responsible i
Slide 22: Record revenues in H1 2025 up +8% organic
Record revenues in H1 2025 up +8% organic Analysis of Change in Group Revenues (in €m) +10.1% -1.0% +0.8% -2.1% 19,336 18,173 Mainly due to the weakening of the U.S. Dollar, Indian Rupee, Turkish Lira and Mexican Peso vs. the Euro Group +7.9% organic Mainly representing the acquisitions of Planon an
Slide 23: Strong Q2 2025 Group revenues up +8% organic
Strong Q2 2025 Group revenues up +8% organic Analysis of Change in Group Revenues (in €m) +1.4% -4.6% +10.4% +12.5% 10,011 +7.4% 9,567 +2.1% Mainly due to to weakening of the U.S. Dollar, Chinese Yuan and Indian Rupee vs. the Euro Group +8.3% org. Mainly representing the acquisitions of Planon and M
Slide 24: Growth in Q2 led by Systems and Services
Growth in Q2 led by Systems and Services PRODUCTS SYSTEMS SOFTWARE & SERVICES 48% of Q2 revenues 33% of Q2 revenues 19% of Q2 revenues +2% +17% +11% Q2 organic growth Q2 organic growth Q2 organic growth • Energy Management up low-single digit with • Energy Management grew strong double- • Agnostic s
Slide 25: Energy Management +10% Q2 org. growth
Energy Management +10% Q2 org. growth W. Europe N. America Asia Pac. Rest of the World Split of Q2 2025 revenue by geography: 22% 41% 26% 11% North America +15% Western Europe +3% Double-digit growth in U.S. led by Systems, up strong double-digit, primarily Strong growth in Spain, solid contribution
Slide 26: Industrial Automation -1% Q2 org. growth
Industrial Automation -1% Q2 org. growth W. Europe N. America Asia Pac. Rest of the World Split of Q2 2025 revenue by geography: 28% 22% 32% 18% North America -3% Western Europe 0% U.S. down slightly, with strong growth at AVEVA offset by continued Strong growth at AVEVA led by performance in Switze
Slide 27: Adj. EBITA Margin at 18.2%, -10bps organic
Adj. EBITA Margin at 18.2%, -10bps organic Energy Management Industrial Automation Reported Organic In €m H1 2024 H1 2025 change change Revenues 18,173 19,336 +6.4% +7.9% 21.5% 13.7% c.-50bps c.-120bps Gross Profit 7,889 8,202 +4.0% +5.6% org. org. Gross Margin (%) 43.4% 42.4% -100bps -90bps • SFC h
Slide 28: Gross Margin: -90bps organic change
Gross Margin: -90bps organic change Gross Margin: Analysis of Change (%) +0.8 -0.8 43.4 -0.4 -0.3 -0.2 -0.1 42.4 Adverse impact from the faster growth of Systems vs. Products and Software Net price -€84m Scope impact +10bps positive • Pricing on products: -€6m offset by ‘other’ consisting • Raw Mate
Slide 29: SFC: Responsible investment in strategic priorities
SFC: Responsible investment in strategic priorities while ensuring close control of discretionary cost Analysis of Change of SFC (in €m) 139 -110 97 4,692 115 4,506 -55 Cost saving initiatives mainly headcount related Investments in strategic priorities: R&D investment, digital investment including
Slide 30: Adjusted Net Income of €2.2bn up +6% organic
Adjusted Net Income of €2.2bn up +6% organic Reported Organic In €m H1 2024 H1 2025 change change Consisting mainly of a gain on Qmerit minority buyout, partly offset by some M&A and integration costs. H1’24 Adjusted EBITA 3,383 3,510 +4% +6.9% included some M&A and integration costs and some legal
Slide 31: H1 operating cash flow at €2.9 billion
H1 operating cash flow at €2.9 billion – FCF of €0.5 billion due to working capital requirements and one-time impact of a fine Operating cash flow down -5% vs. H1’24 due to timing of Analysis of debt change in €m H1 2024 H1 2025 cash tax paid Net debt at opening Dec 31 (9,367) (8,147) Mainly relatin
Slide 32: Balance sheet remains strong
Balance sheet remains strong Main impacts In H1 2025: Net Debt / Adj. EBITDA1 • Payment of €2.2bn to fulfill FY24 dividend • Payment of €0.8bn for the acquisition of a 75% 2.13x controlling interest in Motivair • Free cash flow generation of €0.5bn 1.38x 1.45x 1.00x Pro-forma impact from acquisition
Slide 33: Expected Trends & Financial Target
Expected Trends & Financial Target Olivier Blum | CEO Investor Relations – Schneider Electric Page 33
Slide 34: Expected trends in 2025
Expected trends in 2025 Amid an environment of heightened uncertainty, the Group currently expects: • Continued demand recovery in Discrete automation, with sales growth weighted towards H2 • Continued market demand to drive growth, with contribution from across end-markets (Data Center & Networks,
Slide 35: 2025 Target reaffirmed
2025 Target reaffirmed Based on the ongoing uncertain geopolitical environment, and incorporating the impacts of trade tariffs enacted or formally announced to-date, the Group reaffirms its 2025 financial target as follows: 2025 Adjusted EBITA growth of between +10% and +15% organic The target would
Slide 36: Q&A
Q&A Investor Relations – Schneider Electric Page 36
Slide 37: Investor Relations ready to engage
Investor Relations ready to engage Investor Relations contacts Amit Bhalla – amit.bhalla@se.com 31 July H1 2025 Results 3 September Morgan Stanley Industrial CEOs Unplugged (London) Graham Phillips – graham.phillips@se.com 16 September RBC Global Industrials Conference (New York) 30 October Q3 2025
Slide 38: Appendix
Appendix Investor Relations – Schneider Electric Page 38
Slide 39: 2025 additional notes
2025 additional notes Foreign Exchange impact: Based on current rates1, the FX impact on FY 2025 revenues is estimated to be between -€1.25 billion to -€1.35 billion. The FX impact at current rates on adjusted EBITA margin for FY 2025 could be around -40bps Scope impact: Around +€300 million on 2025
Slide 40: Adj. EBITA +6.9% org. due to volume and industrial productivity
Adj. EBITA +6.9% org. due to volume and industrial productivity Analysis of Change of Adjusted EBITA (in €m) 164 -161 610 -84 -56 -206 -146 6 3,510 3,383 H1 2024 Volume Net price1 Productivity Mix R&D & SFC Forex Scope & H1 2025 Production others Labor infl. 1. Price on products and total raw materi
Slide 41: Q2 2025 Results
2025 Q1 Q2 Q3 Q4 Target Score 8.06 8.80 Q2 2025 Results 6 long-term commitments Program 2025 Program Baseline1 Q2 2025 Target Ambition Score 3/10 8.06/10 8.80/10 10/10 CLIMATE 1. Grow Schneider Impact revenues2 70% 0% 74% 75% 80% 2. Help our customers save and avoid millions of tonnes of CO2 emissio
Slide 42: Adjusted Net Income calculation
Adjusted Net Income calculation In €m H1 2024 H1 2025 Adjusted EBITA 3,383 3,510 Amortization of purchase accounting intangibles (194) (233) Net financial income/(loss) (167) (248) Income tax with impact from adjusted items (710) (727) Profit/(loss) of associates and non-controlling interests (69) (
Slide 43: se.com
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