Legrand S.A.

Legrand said H1 2026 sales rose 17.4% excluding currency effects, including 9.8% organic growth and 6.9% growth from acquisitions; FX was a minus 3.7% headwind. Adjusted operating margin was 20.8%. Net profit was EUR 698 million, up 11.2% year over year. Free cash flow was EUR 488 million, or 9% of sales. Management raised full-year 2026 guidance to sales growth excluding currency of 16% to 19% (previously 10% to 15%), organic growth of 8% to 10% (previously 4% to 7%), and acquisition-driven growth of around 8% (previously 6% to 8%), while leaving adjusted operating margin at 20.5% to 21% and targeting at least 100% CSR achievement rate.

Benoît Coquart framed the quarter as another period of record sales growth and excellent profitability, and said the company is executing its 2030 strategic roadmap with discipline. He highlighted data centers, acquisitions, and innovation as the key pillars of momentum, and emphasized that data center demand remains very strong with solid orders and no sign of slowing. His tone was confident and upbeat, but he repeatedly said more detail on long-term architecture and portfolio mix would come at the September Capital Market Day.

Franck Lemery emphasized that profitability remained very strong despite inflation, with an adjusted operating margin of 20.8% in H1 2026. He pointed to net profit of EUR 698 million, up 11.2%, and free cash flow of EUR 488 million, equal to 9% of sales. On drivers, he cited effective pricing, cost productivity, and the quality of recent acquisitions, and said H1 restructuring was EUR 33 million, in line with EUR 34 million in H1 2025; he also said leverage at June was 2.4x EBITDA and that tariffs had no material impact in H1.

Analysts focused heavily on data centers, asking about the durability of demand, the risk of an AI bubble, backlog visibility, and the implications of future 800VDC/LVDC architectures. Management said demand remains strong with orders extending into 2026, 2027, and some into 2028, but stressed that backlog is not the main driver of visibility; instead, it watches announced gigawatts and hyperscaler capex plans. Questions on margins and Europe led management to explain that Europe’s weaker profit line reflects central costs, acquisition mix, and restructuring rather than a major pricing problem, and that H1 cash flow was soft mainly because of working capital.