Schneider Electric's record financial performance for fiscal year 2023 included a healthy dose of sustainability consulting and managed services, according to an annual earnings statement issued on February 15, 2024.
First, the big picture: Schneider Electric, founded around 1836, is based in Paris, France. The company has roughly 162,000 employees worldwide.
Led by CEO Peter Herweck (pictured above), Schneider Electric positions itself as the "digital partner for sustainability and efficiency" for "homes, buildings, data centers, infrastructure and industries." The company's expertise spans energy technologies, real-time automation, software, consulting services and managed services.
Schneider Electric Financial Trends: Where Sustainability Fits In
For Schneider Electric's fiscal year 2023:
- Annual revenue was €36 billion, up 13% organically from fiscal year 2022.
- The energy management business grew 14% organically.
- Industrial automation grew 7% organically.
- Net income was €4.0 billion, up 15%.
Q4 2023 Financial Trends: Dig a little deeper into the financials, and you'll see numerous updates involving energy management, sustainability and managed services. For instance:
- In the Software and Digital Services Market: Energy management agnostic software delivered double-digit organic revenue growth in Q4, led by the Group’s eCAD offer (ETAP). On a related note, Schneider Electric in January 2024 purchased the remaining 20% minority interests of ETAP under terms of a deal first inked in 2021, the company disclosed. ETAP is a software platform for electrical power systems modeling and simulation. The software allows customers to optimize electricity power systems based on their digital twin equivalents.
- In the Sustainability Business: Sustainability consulting and services offers (split between Digital and Field Services) delivered "high-single digit sales growth in Q4 against a base of comparison in excess of +20%," the company said. The group’s "sustainability consulting and managed services led growth, with strong performance in PPA advisory services in Europe, while the Group’s consulting services were a catalyst for strong pull-through for other offers," the earnings statement said. Side note: PPA is short for Power Purchase Agreements.
Among the key milestones to note: Schneider Electric completed the EcoAct acquisition from Atos Group in Q4 2023, which is a "pivotal addition to the portfolio of the Sustainability Business," the company said.
CEO Peter Herweck's Perspectives
In a prepared statement about the quarterly and annual results, Schneider Electric CEO Peter Herweck said: "We enter 2024 with a record level of backlog, particularly in relation to our systems business, giving us enhanced visibility for the coming quarters. Backlog and continuing strong demand dynamics across most of our portfolio solidifies setting strong financial targets for 2024. This is the first step of the “Next Frontier” our four-year journey as a leader in Industrial Tech, as set out in our CMD.”
Related: Track all Schneider Electric news for sustainability partners here.
