Schneider Electric: Initiation of Coverage- Can This Digital Powerhouse Dominate the Data Center Boom?

Schneider Electric’s 2024 full-year results underscore the company’s ability to navigate through various market dynamics, demonstrating both strengths and areas that might require caution. Revenue for Schneider Electric reached a record EUR 38 billion, marking an 8% organic growth, slightly surpassing the guidance range. This growth is buoyed primarily by strong performances in Energy Management, driven largely by the high demand in data centers, and a much-awaited return to growth in Industrial Automation after a period of subdued performance. These results are reflective of Schneider Electric’s strategic execution and broad geographical and sectoral diversification.