Legrand S.A.

H1 2026 sales increased 17.4% excluding currency effects, including 9.8% organic growth, 6.9% acquisition-driven growth, and a 3.7% currency headwind. Adjusted operating margin was 20.8%; net profit was EUR 698 million, up 11.2% versus H1 2025; and free cash flow was EUR 488 million, or 9% of sales. For 2026, Legrand now expects sales growth excluding currency effects of 16%-19% (vs. 10%-15% prior), organic growth of 8%-10% (vs. 4%-7% prior), acquisition growth of around 8% (vs. 6%-8% prior), and an adjusted operating margin after acquisitions of 20.5%-21% unchanged. The company also said full-year currency impact should be around minus 1.5% and acquisition impact around plus 8% for the year.

Benoît Coquart emphasized that Legrand delivered record sales growth, continued strong profitability, and is executing its 2030 roadmap with determination. He highlighted data centers as the main growth engine, citing more than 30% organic growth in H1, and said orders remain very solid with momentum not slowing. He also framed the business as increasingly positioned around energy transition and AI infrastructure, while pointing to the upcoming September CMD in Singapore for a deeper update on data centers and 2030 ambitions.

Franck Lemery said profitability remained very strong in H1 despite inflation, with a 20.8% adjusted operating margin supported by pricing, cost productivity, and the contribution of recent acquisitions. He noted net profit of EUR 698 million, up 11.2%, and free cash flow of EUR 488 million, or 9% of sales, which he called soft but not unusual for H1 due to working-capital needs. He added that working capital should normalize and that full-year free cash flow should return to the usual 13%-15% of sales range; he also said H1 tariff effects were not material and that the margins are “clean.”

Analysts focused on data center demand durability, the risk of an AI/data center bubble, the company’s exposure to 800VDC and sidecar architectures, pricing into H2, European margin weakness, and the pace/valuation of M&A. Management said data center orders remain very strong, with growth expected at 25%-30% organically for the full year and H2 growth still likely 20%-30%, and argued the AI buildout is still early given low penetration. On pricing, Legrand said H1 selling prices were up 2.9% and it now expects about 3% for the full year, while European margin pressure was attributed mainly to fixed SG&A, central costs, and restructuring rather than a gross margin problem. On M&A, management said the 7 announced deals so far in 2026 represent around EUR 450 million of annual revenue, were done at less than 11x 2025 EBIT, and that leverage at 2.4x EBITDA still leaves room for further deals.