Q3 2025 Schneider Electric SE Corporate Sales Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andre Kukhnin - UBS AG - Analyst : I just wanted to dig into pricing a bit more on the comment on North America pricing improving to offset tariffs, but balanced out by China. Is this a continuation of the H1 trend? And hence, does that imply that China headwinds have become a bit more severe? And can you give us an assurance could still get that kind of 1% to 2% price on products on the bridge in the second half?

Question: Max Yates - Morgan Stanley - Analyst : Could I just ask about the Data Center business? You've obviously mentioned kind of double-digit growth. Would you be able to sort of help quantify that any further? And maybe by either talking about the kind of pure data center networks -- ex the network piece, how fast is that growing? And also maybe if you could comment on the book-to-bill this quarter? Are we still seeing sort of positive book-to-bills in both Q3 and year to date in the Data Center business?

Question: Jonathan Mounsey - Exane Bnp Paribas - Analyst : Let me ask a question this morning. Maybe just the opportunity to sort of clarify the wording in the guidance. We've had some obviously clients today this morning looking at the message around you're saying the lower half of the guide. And I think you did touch on this, but that's just to say that we're moving really to where consensus is, yes, because obviously, at the very lower end of the guide, that would imply a Q4 sales growth of something like 4%, which would be obviously a material deceleration. But that's not the correct interpretation. And also just on the scope effect, I think the guidance was 300 million previously. It's now 250 million. I think I understand that's due to some disposals that you've recently done. Can you just update us on how Motivair is going? Obviously, the main part of the scope effect, how that's performing since you acquired it?

Question: Martin Wilkie - Citi - Analyst : Just on the tough comparables you talked about both for Q3 and Q4. Could you just tell us sort of how big that was in terms of specific projects? Or was it a particular region that gave you that tough comp for data center in Q3 of last year. And just to clarify related to that, when you talk about tough comps in the fourth quarter, is that also a specific data center comment or a broader comment? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2025 / 7:30AM, SCHN.PA - Q3 2025 Schneider Electric SE Corporate Sales Call

Question: Ben Heelan - Bank of America - Analyst : I wanted to ask on Western Europe in Energy Management. You mentioned that you've seen good data center growth in France and Spain. Are you seeing the same sort of growth in Western Europe that you're seeing in North America? And can you give us an idea about how big the data center business is within Western Europe today?

Question: Gael de-Bray - Deutsche Bank AG - Analyst : I suspect you will be talking more about this at the upcoming Capital Market Day. But could you already gave us some details and highlight for us what's different with the new vision you have for the company this vision of becoming the energy technology partner for all customers? I mean, what's different from, I guess, the company's purpose you had before?

Question: James Moore - Rothschild & Co. - Analyst : I wondered if I could go back to the orders, not revenue, the order environment for data centers. I think quite catch you earlier, Hilary. I think you talked about orders on a trailing 12-month basis and revenues double digit and a good pipeline, strong AR into digital. But would it be accurate to say that orders in data center networks declined year-on-year organically in the third quarter as they did in the second? And if that's the case, could you perhaps talk a little bit about regionally or product-wise, where that is?

Question: Delphine Brault - Oddo BHF SCA - Analyst : Can you provide bit more color on your backlog. Can you confirm that it has increased despite the FX? And can you say which segments increased the most and which ones decrease, if any?

Question: Phil Buller - JPMorgan Chase & Co - Analyst : There's a question on data centers. I'm wondering how the capacity expansion is progressing. I think some were perhaps hoping for slightly higher revenue growth from DC. So is that a bottleneck in any way perhaps you can share what your capacity utilization levels are? Or how lead times are evolving, please?

Question: Daniela Costa - Goldman Sachs Group Inc - Analyst : I just wanted to follow on the question of the low end of the range in organic growth, again, sorry to labor on the point, if I didn't understand very well what you said before. But I guess, take your view answer has -- comparables are tougher, which mechanically we can see. But what exactly changed between when you wrote the statement or when you reiterated the guidance at the first half and at Q3, that led you to that incrementally mentioning the lower end specifically, I guess, for margin understood what you mentioned on pricing, but for growth specifically, can you just elaborate again?

Question: George Featherstone - Barclays - Analyst : Similar question relative to Daniela's just then, but on the margin. Obviously, you've lowered the margin expectation on organic basis towards the kind of lower half two. How much of that is a function of systems versus product mix on the headwind side? And how much of it is really a function of that price versus cost on tariffs?

Question: Benedict Uglow - Oxcap - Analyst : I wanted to follow up on the pricing commentary. Can you just give us a little bit more color of the pricing actions that you have been taking? And I guess what I'm trying to understand is in terms of offsetting the impacts, is this simply a timing effect, i.e., that your price actions have lagged market developments or whatever -- however you want to put it? Or is this to do with regional differences? And I remember in the first half, you called out China, is that still a pressure point? So just is this to do with timing of your increases? Or are there regional variations basically?

Question: William Mackie - Kepler Cheuvreux SA - Analyst : My question focused on industrial automation, very positive flip from the earlier negative growth this year to 6% growth in Q3. To what extent do you think this is driven by a real shift in underlying demand, particularly in Western Europe or Asia Pacific rather than a normalization of what you might call distributor behavior and the normalization of stock levels, for example?

Question: Kulwinder Rajpal - Alphavalue SA - Analyst : I just wanted to zoom in a little bit more on the discrete automation side in China in particular. So what were the key trends that shaped the high single-digit growth that we saw there? And also, how do you see those trends as we move into the end of the year and then a couple of quarters into '26? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2025 / 7:30AM, SCHN.PA - Q3 2025 Schneider Electric SE Corporate Sales Call

Question: Kulwinder Rajpal - Alphavalue SA - Analyst : But no one-off, right? Is that correct?

Question: Eric Lemarie - CIC Market Solutions - Analyst : A question on data centers. So obviously, the market is very dynamic. Do you see any new players trying to enter the market with aggressive behaviors in the US or in Europe?

Question: Eric Lemarie - CIC Market Solutions - Analyst : But my question was more new competitors for Schneider Electric.