France · Delayed Price · Currency is EUR Legrand Earnings Call Transcripts
Fiscal Year 2026
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Shareholders approved all resolutions, including a dividend increase and board renewals. Strong financial and CSR performance was highlighted, with ambitious 2030 targets and continued focus on data centers, energy transition, and acquisitions.
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Strong Q1 sales growth was driven by data centers and acquisitions, with profitability and cash flow remaining robust. Guidance for 2026 is confirmed, with data center growth expected at the high end of the range and continued caution on building markets due to geopolitical risks.
Fiscal Year 2025
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Record 2025 sales and profitability were driven by exceptional data center growth and strategic acquisitions, with strong cash flow and a robust outlook for 2026. Guidance targets +10% to +15% sales growth and sustained high margins, supported by continued momentum in energy transition and digital offerings.
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Sales grew 14.5% year-over-year, driven by data centers (+30%) and acquisitions, with adjusted operating margin at 20.7%. Full-year guidance is confirmed, targeting 10–12% sales growth and 20.5–21% margin, while building segments remain flat and tariff impacts are less severe than expected.
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Strong H1 2025 results featured 15% sales growth and a 21% adjusted operating margin, driven by exceptional data center performance. Full-year guidance was raised, with most growth expected from data centers, while building markets remain subdued.
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Q1 saw double-digit sales growth, led by exceptional data center performance, while building markets remained soft. Margin and profit were strong, with tariff risks managed through pricing and supply chain actions. Full-year guidance and strategic targets are reaffirmed.
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The new 2025-2027 CSR roadmap builds on strong past achievements, targeting further gains in diversity, emissions reduction, circular economy, and responsible business. CSR is fully integrated into strategy, governance, and management incentives, supporting both financial and non-financial performance.
Fiscal Year 2024
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2024 targets were fully met, with strong data center growth, robust M&A, and high profitability. 2025 guidance targets 6%-10% sales growth, stable margins, and continued CSR progress, while data centers and acquisitions remain key growth drivers.
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Sales were stable over nine months, with Q3 growth driven by acquisitions and US data centers. Margins and cash flow remained solid despite weak construction markets in Europe and China, while data center demand and M&A activity were strong.
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Legrand delivered on its 2021-2024 targets, expanding its addressable market and boosting exposure to high-growth segments like data centers and energy transition. By 2030, it targets €12–15 billion in sales, 3–5% annual organic and M&A growth, and 80% of sales from eco-responsible products, while maintaining strong profitability and cash flow.
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Resilient performance in a weak building market, with Q2 sales growth driven by data centers and robust margins. Full-year guidance is reaffirmed, acquisitions accelerate, and data center momentum is expected to continue, while Europe and China remain challenging.