Schneider: Volume will drive margin despite tougher inflation outlook

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Schneider: Volume will drive margin despite tougher inflation outlook

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Schneider

Volume will drive margin despite tougher

inflation outlook

Reiterate Rating: BUY | PO: 320.00 EUR | Price: 257.70 EUR

Volume drives margin despite tougher inflation outlook 11 June 2026

We reiterate Buy, with Schneider well positioned to deliver its FY26 margin guidance Equity

(19.1–19.4%) despite a tougher price/cost environment and is well positioned to benefit

in the upcoming transition towards 800V DC. We see growth in Energy Management

(EM) in the low-teens range through FY26, as well as a continued pick-up see Industrial Key Changes

Automation supporting a strong volume contribution to margins this year despite a (EUR) Previous Current

tougher price cost environment. As the industry prepares for the shift to 800V DC, we Price Obj. 306.00 320.00

see Schneider well positioned as a systems integrator across both the power conversion

and thermal power train, where we see spending accelerating over time. For 2027-28, Benjamin Heelan >>

we see Schneider benefitting from accelerating power sidecar demand supporting Research Analyst

growth in Energy Management in the low teens. PO up to €320/ADR $75 (from Merrill+44 20Lynch7996 (DIFC)5723

€306/$71 prior (see inside for details)). Reiterate Buy. benjamin.heelan@bofa.com

Aron Ceccarelli >>

Research AnalystEM demand reinforced by peers and ecosystem signals MLI (UK)

Industry datapoints remain highly supportive. We continue to see strong order +44 20 7996 3827

momentum across the peer group, including Siemens, ABB, Eaton and Vertiv. At the aron.ceccarelli@bofa.com

same time, longer-duration agreements are increasingly being signed across power and Alexander Jones, CFA >>

fibre, underlining confidence in medium-term demand.