Half Year 2026 Legrand SA Earnings Call Transcript
Key Points
- Legrand SA (LGRDY) reported a strong sales growth of 17.4% in H1 2026, driven by organic growth and acquisitions.
- The Data Center business experienced significant organic growth of over 30%, now accounting for 32% of Legrand's revenue.
- The company raised its full-year 2026 sales growth targets to between 16% and 19%, reflecting confidence in its strategic initiatives.
- Legrand SA (LGRDY) maintained a strong adjusted operating margin of 20.8% despite inflationary pressures.
- The company announced seven acquisitions in 2026, focused on energy and digital transition, contributing to its leadership in high-growth markets.
- Europe sales declined by 2.4% due to a challenging building market, impacting overall regional performance.
- The exchange rate effect negatively impacted sales by 3.7% in H1 2026.
- The company's profitability in Europe was affected by higher restructuring costs and fixed SG&A expenses.
- Legrand SA (LGRDY) faced challenges in managing the hyper growth of its Data Center business, leading to inefficiencies.
- Free cash flow was slightly lower at EUR488 million, representing 9% of sales, due to higher working capital requirements.
Good morning, ladies and gentlemen, and welcome to today's Legrand 2026 half year results conference call. For your information, this conference is being recorded. (Operator Instructions)
At this time, I would like to turn the call over to CEO, Mr. Benoit Coquart; and CFO, Mr. Franck Lemery. Please go ahead, sir.
Thank you very much. Good morning, everybody. Franck Lemery and myself are happy to welcome you to Legrand H1 2026 conference call and webcast. This morning, as usual, we published our press release, financial statements and the slide show that we will refer to during the call. After a few opening remarks, we will comment on the results in more details.
Let me start on page 4 with the key highlights of the quarter. First, Legrand delivered another period of record sales growth together with continued excellent profitability. Second, we are continuing to implement our 2030 strategic road map with determination. Third, we are
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