Wide-Moat Schneider Electric Holds Long-Term Structural Growth Thanks to the Energy Transition

Schneider Electric is well-positioned for the ongoing convergence of electrical hardware and software markets. Its portfolio of electrical power and industrial automation products exhibit high barriers to entry and will benefit from the secular trends of digitalization, the energy transition and reshoring production, supporting long-term structural growth. Several acquisitions have expanded Schneider’s digital capabilities, leveraging its leading market share in electrical products to further integrate itself with end users’ operations and create more meaningful relationships with customers. The shift away from purely transactional sales toward stickier digital revenue and its continuous focus on productivity improvements have lowered the cyclicality of operating performance.