UPDATE 1-Schneider Electric unveils $4 billion share buyback, pumps up margin forecast

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Adds CEO and CFO quotes from media call in paragraphs 7-9, share move in paragraph 11

Schneider steps up shareholder returns with new buyback plan

Company expands profit margin target, revenue goal unchanged

CEO flags data centre demand beyond North America

By Gianluca Lo Nostro and Leo Marchandon

Dec 11 (Reuters) - France's Schneider Electric SCHN.PA plans a share repurchase programme of up to 3.5 billion euros ($4.1 billion) through 2030, its first in nearly three years, and aims to increase its adjusted core profit margin in the same period, it said on Thursday.

In a statement published ahead of an investor day event in London, the industrial group said it expected its adjusted earnings before interest, taxes and amortization (EBITA) margin to expand by 250 basis points between 2026 and 2030. It had previously forecast a 50-basis-point rise from 2023 to 2027.

The group maintained an annual organic revenue growth target of between 7% and 10% from 2025 to 2030, unchanged from its 2023 guidance.

The return to share repurchases signals Schneider's renewed efforts to boost shareholder returns after a muted share-price performance this year. Its last buyback was carried out between 2019 and 2023.

AI BOOM BOOSTS SCHNEIDER

Best known for its electrical components used in buildings and industrial automation, Schneider has drawn fresh investor attention amid the artificial intelligence frenzy.

The company has gained the spotlight as a major data centre supplier, particularly in North America, delivering power switches, cooling systems and server racks that form the backbone of AI infrastructure.

"We see a very good (data centre) demand outside North America," Schneider CEO Olivier Blum said, naming China, India, Middle East and Europe as regions where governments are building strong AI capabilities.

Still, the group has repeatedly flagged delays in data centre projects in Europe, mostly tied to power supply challenges.

"It's too early to say that those impediments are fully falling away," finance chief Hillary Maxson told reporters.

Schneider also said it planned to divest some businesses, responsible for between 1 billion and 1.5 billion euros of the group's revenue, by 2030.

Shares in Schneider rose around 4% in early trading in Paris, leading gains on the French CAC 40 .FCHI benchmark index.

($1 = 0.8559 euros)

(Reporting by Gianluca Lo Nostro and Leo Marchandon in Gdansk; Editing by Milla Nissi-Prussak)

((gianluca.lonostro@thomsonreuters.com))

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