Aug 01, 2025 | Posted by Abdul-Rahman Oladimeji
French power and cooling company Schneider Electric saw revenues increase thanks to continued data center spending. However, the company noted that unfavorable foreign exchange dynamics hit its margins, while tariffs and materials inflation cut into profits.
"We see a double-digit growth opportunity for Schneider Electric," CEO Olivier Blum said of the data center segment. "We are fairly confident that with all the actions that have been taken roughly 12, 18 months ago, we are in a good position to capture the growth opportunity in data center, short term, midterm across all the parts of our portfolio."
Western Europe, which had seen sluggish sales, "was back to growth driven by execution of Data Center projects in Spain, Italy and France," CFO Hilary Maxson said. While it only grew three percent, Maxson said the company "continues to see a strong pipeline, and we are starting to see some small signs of better momentum towards execution in a few countries as governments look for accelerated routes to grant access to land and grid connections."
CEO Blum added: "We’ve started some pickup in Q2, but it's too early to confirm a massive acceleration of growth in Europe in particular. I would stay [we're] relatively cautious, because there are a lot of those new investments that we see that are probably good news for the midterm, but Europe will continue to be a very challenging environment in H2."
