| Schneider Electric: Financial Highlights |
| · Group revenues of €9.3 billion, up +8% organic; a record for Q3 |
| o Energy Management up +12% |
| o Industrial Automation is down -6%, impacted by market weakness in Discrete Automation |
| · All four regions contribute to growth in Q3: North America and Rest of the World up double-digit organic |
| · Systems and Services leading the growth, both up double-digit; ARR at AVEVA up +15% |
| · Strategic acquisition of Motivair Corporation, a key player in liquid cooling – strengthening the Group’s leading position in Data Centers |
| · Continued progress on Schneider Sustainability Impact |
| · 2024 Target reaffirmed |
| Peter Herweck, Chief Executive Officer, commented: |
| “In Q3 we continued to focus on execution, growing across all geographies, while ramping our capacity to maximize on the unprecedented growth opportunities. Sales in Q3 are at record levels and were led by our Systems business reflecting particularly the strength of megatrends including Digitization & AI and the Energy Transition. The strength of our Systems backlog provides us excellent visibility for the coming quarters, while we begin to see a recovery in Product demand across the board which we expect to continue through Q4. I am also pleased to see strong performance in Software and Services, where we continue to focus on driving recurring revenues, with ARR at AVEVA up +15% and double-digit growth in Services for the Group” |
| I. THIRD QUARTER REVENUES WERE UP +8% ORGANIC |
| 2024 Q3 revenues were €9,311 million, up +8.0% organic and up +5.9% on a reported basis. |
| Products (51% of Q3 revenues) grew +2% organic in Q3. Product revenues were up mid-single digit in Energy Management with good growth in sales of electrical distribution products across many end-markets and segments, while consumer-linked segments such as residential buildings and distributed IT saw improvement against a low base of comparison. Industrial Automation product revenues contracted, impacted by continued weak Discrete automation markets, primarily in Western Europe. Across the Group, product volume contribution was positive. |
| Systems (31% of Q3 revenues) grew +19% organic in Q3, with strong double-digit organic sales growth in Energy Management supported by continued dynamism in Data Center and Infrastructure end-markets. In Industrial Automation, sales growth in systems was around flat, with positive growth in Process & Hybrid markets and strong growth in system drives sold into multiple segments, compensating for sharp declines with OEM customers as a consequence of market weakness in Discrete automation. |
| Software & Services (18% of Q3 revenues) grew +7% organic in Q3, of which Software & Digital Services (7% of Q3 revenues) grew +3% organic and Field Services (11% of Q3 revenues) grew +9% organic. |
| Agnostic Software (comprising AVEVA, ETAP and RIB Software) |
| · AVEVA |
| AVEVA delivered strong growth in Annualized Recurring Revenue (ARR), up +15% as of 30 September 2024, with continued strong traction in Software as a Service (SaaS) uptake with customers. Perpetual license revenues declined, as expected, due to the ongoing subscription transition which remains on- track. ARR growth was broad-based by geography with a strong contribution from the EMEA region and was driven by strong upsell to existing customers. |
| · ETAP and RIB Software |
| Energy Management agnostic software offers delivered mid-single digit organic growth, with strong organic growth contribution from the Group’s eCAD offer (ETAP), while the Group’s software offer for the construction market (RIB Software) delivered good organic growth. Both businesses are transitioning to a subscription model, resulting in a planned decline in perpetual license revenue. ETAP in particular saw strong growth in recurring revenues, while RIB remained impacted by continued softness in the construction market in Germany. |
| Services (comprising Digital and Field Services offers) grew double-digit organic in Q3 |
| · Digital Services delivered double-digit growth in Q3, driven by performance in Energy Management Advisors, Grid digitization and modernization offers and Cybersecurity services. The Group’s Digital Services offering comprises its internally generated EcoStruxure solutions and advisors, including Sustainability consulting and advisory offers, and its digital offers for prosumers. |
| · Field Services grew high-single digit in Q3, led by double-digit growth in Energy Management services. Energy Management services benefitted from strong trends associated with Data Centers, Infrastructure and the renovation of non-residential buildings in mature economies, and from backlog execution on U.S. public sector projects in the Sustainability business. Industrial Automation services declined slightly against a strong double-digit base of comparison. The Group’s Field Services offering includes safety, efficiency, sustainability and resiliency services across all four end-markets served by the Group, including its efficiency offers for Sustainability. |
| The breakdown of revenue by business and geography was as follows: |
| |
|
Q3 2024 |
|
|
9m YTD 2024 |
|
| Region |
Revenues
€ million |
Reported Growth |
Organic Growth |
|
Revenues
€ million |
Reported Growth |
Organic Growth |
| North America |
3,101 |
+16.9% |
+18.3% |
8,805 |
+14.2% |
+14.8% |
| Western Europe |
1,632 |
+6.8% |
+5.6% |
5,045 |
+5.3% |
+4.1% |
| Asia Pacific |
2,029 |
+4.2% |
+4.9% |
5,867 |
+2.6% |
+5.5% |
| Rest of the World |
890 |
+10.3% |
+17.6% |
2,587 |
+8.6% |
+18.9% |
| Total Energy
Management |
7,652 |
+10.3% |
+11.6% |
22,304 |
+8.2% |
+10.1% |
| North America |
396 |
-9.8% |
-4.9% |
1,194 |
-9.7% |
-5.1% |
| Western Europe |
425 |
-18.5% |
-15.6% |
1,390 |
-19.5% |
-15.4% |
| Asia Pacific |
536 |
-10.8% |
-7.6% |
1,695 |
-9.2% |
-3.8% |
| Rest of the World |
302 |
+3.5% |
+14.6% |
901 |
-0.2% |
+11.2% |
| Total Industrial
Automation |
1,659 |
-10.5% |
-5.9% |
5,180 |
-11.0% |
-5.4% |
| North America |
3,497 |
+13.1% |
+15.1% |
9,999 |
+10.7% |
+12.0% |
| Western Europe |
2,057 |
+0.4% |
+0.3% |
6,435 |
-1.3% |
-0.8% |
| Asia Pacific |
2,565 |
+0.6% |
+2.0% |
7,562 |
-0.3% |
+3.2% |
| Rest of the World |
1,192 |
+8.5% |
+16.8% |
3,488 |
+6.2% |
+16.8% |
| Total Group |
9,311 |
+5.9% |
+8.0% |
27,484 |
+4.0% |
+6.8% |
|
| For the full document click the link below: |
| Schneider Electric |
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