Legrand S.A.

Legrand reported H1 2026 sales growth of 17.4% excluding currency effects, including 9.8% organic growth, 6.9% scope growth from acquisitions, and a -3.7% currency effect. 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. Full-year 2026 guidance was raised to sales growth excluding currency of 16% to 19% versus 10% to 15% previously, organic growth of 8% to 10% versus 4% to 7%, acquisition-driven growth of around 8%, and an adjusted operating margin after acquisitions of 20.5% to 21% of sales, unchanged. Management also said the 2026 acquisition scope impact is around 8% based on deals already announced, and CSR achievement is targeted at least 100%.

Benoît Coquart framed the quarter as another record period, emphasizing strong demand in data centers and energy-transition-related offerings, continued execution on the 2030 roadmap, and disciplined acquisitions and innovation. He repeatedly stressed that data center demand is not slowing, orders are extending into 2027 and 2028, and that Legrand is well positioned for high-density AI infrastructure through a broad and increasingly modular portfolio. His tone was confident and constructive, while also acknowledging Europe’s weak building market and the need to keep adapting the footprint.

Franck Lemery highlighted a very strong H1 adjusted operating margin of 20.8%, saying pricing, cost productivity, and the contribution of acquisitions helped offset inflationary pressure. He said net profit rose to EUR 698 million, free cash flow was EUR 488 million, and restructuring in H1 was EUR 33 million, broadly in line with last year’s EUR 34 million. He also said H1 working capital was elevated at around 14% versus a typical 12%, but expects full-year free cash flow to normalize to 13% to 15%, and noted net leverage at end-June was 2.4x EBITDA.

Analysts focused on data center sustainability, backlog visibility, 800VDC and sidecar architecture, European margins, pricing, tariffs, and acquisition pace. Management said H1 data center growth was above 30%, full-year organic growth should be 25% to 30%, and the demand backdrop remains strong with solid orders and growing gigawatt announcements; however, backlog is not treated as firm revenue visibility because projects can be delayed or canceled. On margins, management explained Europe’s weaker profitability mainly reflects fixed SG&A, central costs, and restructuring tied to weak volumes, while tariff effects were not material in H1 and are not expected to be meaningful in 2026.