Schneider Electric Raises Revenue to €36 Billion

Schneider Electric increased total revenues organically by 13% to EUR 36 billion in 2023. During this period, the company's annual adjusted EBITDA reached EUR 6.4 billion. Schneider Electric also completed the year with a score of 6.13 according to Schneider Sustainability Impact analyses, exceeding the 6-point target set for 2023 within the company's sustainability commitments. Free Cash Flow increased by 38% to EUR 4.6 billion. Leading the digital transformation of energy management and automation, Schneider Electric announced its 2023 financial and non-financial results. The company completed its 2023 sustainability commitments with performance above targets. According to the Schneider Sustainability Impact assessment, the company continued working for the welfare of stakeholders and the planet with a performance of 6.13, surpassing the target by 0.13 points. Schneider Electric CEO Peter Herweck, noting that they aim to sustain this strong performance in 2024, stated: "In 2023, our company continued to demonstrate record-level growth and development. We achieved new performance milestones with 13% organic revenue growth, excellent organic margin development, high free cash flow and strong net income growth. We entered the year with the goal of sustaining this high performance in 2024, and in the first period of the year, the strong demand for our solutions, particularly in the Systems segment, provides a positive outlook for the upcoming period. 2024 will be the first step of our 4-year strategy, which we call 'New Horizons' and focuses on sustainable growth and development.

High performance achieved

Successful operations in the fourth quarter played an important role in Schneider Electric's strong annual performance. During this period, the company's revenues increased organically by 9.1% to EUR 9,480 million. Schneider Electric derived 53% of 2023 revenues from the products segment. The Systems segment, which accounted for 28% of the company's 2023 revenues, grew organically by 17% in the fourth quarter. This growth was driven by double-digit organic growth in Energy Management, supported by continued strong demand for Data Center and Infrastructure projects globally. In Industrial Automation, growth was driven by Process and Hybrid system sales. The Software and Services segment, representing 19% of 2023 revenues, grew organically by 17%. Software and Digital Services showed organic growth of 28%. AVEVA, operating under the Schneider Electric umbrella, recorded strong growth in Annual Recurring Revenue (ARR) with an increase of 19% as of 31 December 2023. New customer acquisitions and interest in new products from the existing customer base contributed to this growth. Energy Management agnostic software offerings provided high double-digit organic revenue growth in the fourth quarter. The group's software offering for the construction sector (RIB Software) contributed to this development with strong growth. EcoStruxure solutions serving the digitalization of power grids also provided strong double-digit growth during this period. Field Services, comprising 10% of 2023 revenues, showed 9% organic growth in the final quarter. Sustainability consulting and service offerings conducted within Digital and Field Services provided growth in the high single-digit range during this period. The company's consulting services and solutions provided to private sector and public institutions in various regions of the world contributed to this development. Additionally, the acquisition of EcoAct, which operates in this segment, had a positive impact on the company's performance. In 2023, 56% of the company's revenues came from digital solutions. Thus, in this area where growth above company average was achieved, Connected Products, Software & Services and agnostic software particularly contributed to performance. Schneider Electric aims to increase this ratio to the 60-65 band by 2027. The company, operating in over 100 countries, had North America playing an important role with a 34% share in 2023 revenues. In this region, the company achieved 7% organic growth in 2023. Demand for the company's solutions continued to increase in its other important markets, Western Europe and Asia Pacific. In the company's 2023 performance, Turkey was also influential, particularly through investments and business partnerships in Energy Management and Industrial Automation.