Q3 2025 Legrand SA Earnings Call Transcript
Key Points
- Legrand SA (LGRDY) reported robust sales growth of 14.5% over nine months, with organic growth at 8.2%, driven by a strong performance in data centers.
- The company achieved a solid adjusted operating margin of 20.7%, demonstrating strong execution and adaptability.
- Legrand SA (LGRDY) confirmed its 2025 full-year targets, including expected sales growth of 10% to 12% and an adjusted operating margin of 20.5% to 21%.
- The company has announced seven acquisitions in 2025, enhancing its presence in energy and digital transition markets, with annualized sales of approximately EUR500 million.
- Legrand SA (LGRDY) reported a significant increase in free cash flow, growing by 16.3% to EUR871 million over the same period last year.
- The exchange rate effect negatively impacted sales by 2.2% in the first nine months of 2025, with an expected full-year impact of around 3%.
- Sales in residential and other non-residential buildings were flat, with residential sales slightly down.
- The company faces a demanding basis for comparison in data centers, which may lead to perceived deceleration in growth.
- Pricing increases were modest, with a full-year expectation of only 1.5%, slightly lower than previous guidance.
- The residential market in China and the US showed signs of decline, impacting overall sales performance in these regions.
Good morning, everybody. Franck Lemery, Ronan Marc, and myself are happy to welcome you to the Legrand 2025 nine months results conference call and webcast. Please note that as usual, this call is recorded. We have published today our press release, financial statements, and a slide show to which we will refer.
I begin on page 4 with the three key highlights of this release. First, Legrand delivered robust sales growth and very solid margins over nine months. Second, we are sustaining a strong acquisition momentum. And third, our 2025 full year target rate in July are confirmed.
So moving to page 6. I will start with an overview of sales. Over nine months, excluding FX, our sales grew by plus 14.5%. This includes an organic growth of plus 8.2%, driven by an outstanding performance in data centers of well above plus 30%. This also includes a positive scope effect of plus 5.8%. And based on acquisitions announced and their likely date of consolidation, the full year impact of scope changes should
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