Schneider Electric Posts Record Profits in 2024 Driven by Energy Transition and Data Centres

French industrial giant Schneider Electric closed the year 2024 with a record net profit, up 7% compared to the previous year. The company reported a net profit of €4.27 billion, following a 2023 that was already exceptional. This performance is largely driven by strong demand in two key sectors: energy management and infrastructure for data centres, which are powered by the rise of artificial intelligence (AI).

In 2024, Schneider Electric’s revenue grew by 6.3%, reaching €38 billion. A significant portion of this growth came from the Energy Management division, which saw sales rise by 10.2%, reaching €31 billion. Products and services related to energy management for buildings, infrastructure, and data centres, which are experiencing growing demand, played a major role in this dynamic. In contrast, the Industrial Automation business saw a decline of 8.3%, totalling €7 billion, due to lower volumes and rising production costs.

Growth in Data Centre and AI Markets

The company highlighted that demand for data centres and network infrastructure was a major driver of its growth, especially in the latter months of the year. The rise of AI applications, which require increased computing power, has driven demand for specialised equipment. This trend is particularly strong in North America, which accounts for 36% of Schneider Electric’s total revenue. In response to this growing demand, Schneider Electric strengthened its capabilities with the acquisition of Motivair Corporation in October 2024, a company specialising in liquid cooling for high-performance computing systems, for $850 million.

Geographical Sales Distribution

The group’s geographical performance showed strong dynamics, particularly in the United States, where sales grew by 13.4%. The rest of the world also contributed to growth, with an increase of 9.5%. In contrast, the Asia-Pacific and Western Europe markets experienced more moderate growth.

The group’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) reached €7.1 billion, a 10.5% increase compared to the previous year. This solid performance allows Schneider Electric to target an organic growth of adjusted EBITDA between 10% and 15% in 2025, with a revenue growth target of 7% to 10%.

Outlook for 2025

Schneider Electric anticipates sustained demand for its energy management solutions, particularly in the building, data centre, infrastructure, and industrial sectors. The company is also expecting a recovery in demand in the manufacturing sector, after a slowdown in 2024. However, it remains cautious regarding the rapidly changing geopolitical environment, particularly with regard to tariffs imposed by the United States under the Trump administration. In response to these uncertainties, Schneider Electric plans to implement flexible commercial measures to protect its profitability.

Finally, the group entered 2025 with a positive momentum, following a leadership change with Olivier Blum appointed as CEO. He succeeded Peter Herweck, who was dismissed due to strategic disagreements.