- Impressive 1H Performance: Schneider Electric’s adjusted EBITA reached €3.51 billion, a 3.8% year-over-year increase, surpassing the estimate of €3.29 billion.
- Stable Margins: The adjusted EBITA margin was 18.2%, matching estimates but slightly lower than last year’s 18.6%.
- Significant Revenue Growth: Total revenue grew to €19.34 billion, a 6.4% increase from the previous year, meeting predictions.
- Organic Growth Success: Organic revenue surged by 7.9%, surpassing the estimated 7.5% growth.
- Net Income Concerns: The net income was €1.91 billion, an increase of 1.6% year-over-year but fell short of the €2.23 billion estimate.
- EPS and Cash Flow: Adjusted EPS was slightly below expectations at €3.97, and free cash flow dropped by 47% to €474 million, missing the €854.7 million estimate.
- Second Quarter Highlights: Organic revenue climbed 8.3%, beating the 7.57% estimate. Energy Management revenue was particularly strong, with North America at a notable 14.6% growth.
- Geographic Performance: Western Europe and APAC had mixed results, with Western Europe exceeding estimates, while APAC lagged slightly.
- Industrial Automation Challenges: This sector saw a decline in organic revenue by 1.1%, not meeting the positive growth estimate.
- Year-End Forecasts: Schneider Electric maintains its adjusted EBITA margin expectations of 18.7% to 19% and predicts continued organic revenue growth of 7% to 10%.
Schneider Electric Se on Smartkarma
Analyst coverage of Schneider Electric SE on Smartkarma has been positive, as highlighted by Baptista Research‘s report titled “Schneider Electric: Initiation of Coverage- Can This Digital Powerhouse Dominate the Data Center Boom?“. The report discusses Schneider Electric’s strong performance in its 2024 full-year results, showcasing the company’s ability to navigate through market dynamics effectively. Revenue reached EUR 38 billion with an 8% organic growth, driven by solid results in Energy Management and Industrial Automation sectors. The report emphasizes the company’s strengths and areas that may require caution, painting a comprehensive picture of Schneider Electric’s current position in the market.
A look at Schneider Electric Se Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using Smartkarma Smart Scores to evaluate Schneider Electric SE have given the company moderate to strong ratings across key factors. With a Growth score of 4 and a Resilience score of 4, Schneider Electric SE is positioned for favorable long-term prospects in terms of expanding its operations sustainably and weathering market uncertainties. These scores indicate the company’s potential to grow steadily and its ability to navigate challenges effectively.
Although Schneider Electric SE scores a 2 in both the Value and Dividend categories, suggesting room for improvement in these areas, its overall momentum score of 3 signals a positive trajectory in the market. Investors looking for a company with solid growth potential and a strong foundation may find Schneider Electric SE appealing based on its Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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