Half Year 2025 Legrand SA Earnings Call Transcript
Key Points
- Legrand SA (LGRDY) reported strong sales growth of 15% in the first half of 2025, with organic growth at 9%, driven by an outstanding performance in data centers.
- The company revised its 2025 full-year targets upwards, expecting sales growth between 10% and 12%, and an adjusted operating margin of 20.5% to 21%.
- Legrand SA (LGRDY) achieved a solid adjusted operating margin of 21% in H1 2025, demonstrating strong operational leverage and favorable impacts from acquisitions.
- The data center segment accounted for 24% of group sales in 2025, with a backlog of about EUR1 billion, providing good visibility and confidence in continued growth.
- Legrand SA (LGRDY) is actively executing its strategic ambitions to 2030, with six acquisitions announced in segments tied to energy and digital transition, totaling around EUR200 million in acquired sales.
- Foreign exchange (FX) had a negative impact of -1.4% on sales in the first half of 2025, with expectations of a further negative impact of -2.5% for the full year.
- Sales in Europe rose by only 1% in the first half of 2025, indicating contrasted market conditions in the region.
- The rest of the world saw sales increase by 3.3%, with growth in Asia Pacific, Africa, and the Middle East partially offset by a retreat in America.
- The US office market remains depressed, with no signs of recovery expected before late 2025 or 2026, impacting Legrand SA (LGRDY)'s building business.
- Free cash flow was EUR52 million, growing by only 7.2% in the first half, which may indicate challenges in cash generation relative to sales growth.
Good morning, ladies and gentlemen, and welcome to today's Legrand 2025 half-year results conference call.
For your information, this conference is being recorded. (Operator Instructions) At this time, I would like to hand the call over to CEO, Mr. Benoît Coquart; and CFO, Mr. Franck Lemery.
Please go ahead, sir.
Thank you very much.
Hello, everybody. Good morning. So Franck and Ronan and I are happy to welcome you to the Legrand 2025 H1 results conference call and webcast. As you know, we have published today our press release, financial statements and a slide show to which we will refer. I begin on page 4 of the slide show with the three key highlights of this press release.
First, Legrand delivered very solid results in the first half of 2025 with strong sales growth and high profitability. Second, we have revised our 2025 full-year targets upwards, both in terms of sales and adjusted operating margin. And third, we are
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