Schneider Electric SE - ADR

**Strong Q3 Performance**: Q3 2024 revenues reached €9.3 billion, representing an 8% organic growth year-over-year (YoY). Energy Management contributed significantly with double-digit growth, primarily driven by Data Center demand, while Industrial Automation faced challenges due to weak Discrete automation markets, but showed signs of early recovery.

**Geographic Growth Trends**: Positive growth observed across all geographic regions. North America led with an 18% increase driven by robust demand in Data Centers and Energy Management. Rest of World showed 18% growth, while Asia Pacific experienced a more subdued rise of 5% owing to mid-single-digit declines in China.

**Challenges in Industrial Automation**: Revenues in Industrial Automation fell 6% YoY to €1.7 billion, significantly impacted by the transition to subscription models at AVEVA and ongoing weakness in Discrete automation. Despite early signs of demand recovery, margins are expected to be pressured in H2 due to lower volumes and rising operational costs.