Schneider Electric SE - ADR

Strong Q1 Revenue Growth: Schneider Electric reported EUR 9.3 billion in sales for Q1 2025, representing a 7.4% organic growth year-over-year, driven mainly by a 10% increase in the Energy Management sector, particularly in data centers and infrastructure, despite some weaknesses in residential and industrial automation.

Challenges in Residential and Industrial Segments: The company noted a significant decline in the residential segment due to high interest rates and low consumer confidence, particularly in Western Europe and North America. Industrial Automation saw a nearly flat growth, influenced by seasonality at AVEVA and delays in discrete automation demand.

Ongoing Tariff Impact: The increased tariffs on imports from China, now 145%, are expected to negatively impact Schneider Electric's profit margins, with an estimated EUR 1.15 to EUR 1.25 billion projected reduction in top-line sales and around 40 basis points on adjusted EBITDA margins for the year.