Q1 2025 Legrand SA Earnings Call Transcript
Key Points
- Legrand SA (LGRDY) reported strong sales growth in Q1 2025, with an 11.2% increase excluding FX, driven by a 7.6% organic growth and a 3.3% positive impact from acquisitions.
- The company achieved a solid adjusted operating margin of 20.7% in Q1 2025, demonstrating strong operational leverage.
- Legrand SA (LGRDY) confirmed its full-year targets, projecting sales growth between 6% and 10% organically and through acquisitions.
- The data center segment showed outstanding performance, with growth exceeding 40%, and is expected to continue strong growth throughout 2025.
- Legrand SA (LGRDY) announced two acquisitions in Q1 2025, totaling EUR50 million in acquired 12-month sales, enhancing its leadership in connected healthcare and data centers.
- Sales in Europe were almost flat, with a slight decline of 0.3% organically, due to a sluggish building market.
- The rest of the world saw mixed results, with sales growth in India and the Middle East offset by declines in China and Brazil.
- The company faces challenges from US tariffs, with a significant portion of its US COGS being imported, leading to potential cost increases.
- Legrand SA (LGRDY) anticipates a negative impact on financial results due to rising corporate income tax and financial expenses.
- The building market in North America, excluding data centers, remains slightly down, with no recovery seen yet in the residential or office markets.
Hello. Good morning, everybody. Franck, Ronan and I are happy to welcome you to the Legrand 2025 Q1 conference call and webcast. As you know, we have published today a press release, financial statements and a slide show to which we will refer. After a few opening remarks, we will comment the results into more details.
I begin on page 4 of the deck with the three key highlights of this release. First, Legrand reports strong growth in sales with an acceleration of growth in data centers together with very solid results in Q1, in line with our expectations. Second, we are actively executing our strategic plan for 2030. And third, we confirm our full year targets.
We will also touch a few words on the key topics on the agenda of our incoming General Meeting of Shareholders. Moving to pages 6 and 7, I will start with another view of sales. In the first quarter of 2025, excluding FX, our sales grew by plus point -- sorry, by 11.2%-plus with an organic growth of 7.6%-plus and a positive scope
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