Business
Legrand: 2025 first-half results
LIMOGES, France, July 31, 2025--Regulatory News: Legrand (Paris:LR):
About this update from Legrand Sa
Legrand reports +15% sales growth in first-half 2025, excluding exchange-rate impact and an adjusted operating margin of 21.0% after acquisitions Organic growth over the half year: +9%, driven by datacenters Net profit attributable to the Group: 13.2% of sales 2025 full-year targets revised upward Sales growth of +10% to +12% excluding exchange-rate impact Adjusted operating margin (after acquisitions): 20.5% to 21.0% of sales Active deployment of 2030 strategic roadmap 6 acquisitions announced since the beginning of the year New-product innovation and commercial excellence initiatives 2030 targets reaffirmed LIMOGES, France, July 31, 2025 --( BUSINESS WIRE )--Regulatory News: Legrand (Paris:LR): Benoît Coquart, Legrand’s Chief Executive Officer, commented: "Our first-half 2025 results were excellent, confirming both the relevance of our strategic roadmap and the strength of our teams’ execution. The period was marked by numerous growth initiatives, both organic — with many new product launches and commercial initiatives — and external, with the acquisition of six recognized specialists in the energy and digital transition markets announced, representing close to €200 million in additional full-year revenue. Encouraged by these strong performances, we are revising our full-year sales and margin targets upward. It has now been nearly a year since we unveiled our 2030 ambitions. The trends we’ve observed over the past twelve months — led primarily by datacenters, which account for 24% of our sales in the first half of 2025, and opportunities linked to the energy transition — combined with early results of our strategic roadmap, strengthen our confidence in reaching the upper end of our 2030 revenue target range, around €15 billion, compared with €8.6 billion in 2024". 2025 full-year targets revised upward 1 In 2025, the Group is pursuing the profitable and responsible development laid out in its strategic roadmap 2 . Taking into account the first six months of the year results and considering the world’s current macroeconomic outlook as well as a gradual normalization of customs policies, Legrand is now targeting for the full-year 2025: Financial performance at June 30, 2025 Key figures Consolidated sales In the first half of 2025, sales grew +13.4% from the same period of 2024, to reach €4,774.3 million. Sales rose organically by +9.0% over the period, with +10.7% growth in mature countries and +3.4% in new economies. The impact of broader scope of consolidation was +5.5% for the first half. Based on acquisitions announced and their likely dates of consolidation, their overall impact should be around +4.5% on a full year basis. The exchange-rate effect on sales in the first half of 2025 was -1.4%. Based on average exchange rates in June 2025, the full-year effect would be around -2.5% in 2025. Changes in sales by destination at constant scope of consolidation and exchange rates broke down as follows by region: These changes are analyzed below by geographical region: Adjusted operating profit and margin Adjusted operating profit for the first half of 2025 stood at €1,003.4 million, up +14.9% from the first six months of 2024. This corresponds to an adjusted operating margin equal to 21.0% of sales for the period. Before acquisitions, adjusted operating margin for the first half of 2025 was equal to 20.9% of sales, up +0.2 points from the first half of 2024. In the first half, the Group’s strong profitability demonstrates the strength of Legrand’s strategic model as well as its solid ability to execute and adapt. The Group remains fully committed to navigating the evolving international trade policy landscape, particularly in the United States. To this end, the action plan launched at the beginning of the year is progressing in line with our roadmap, covering targeted price increases and implementation of cost-saving initiatives, supply chain adjustments, and selective changes to our industrial footprint. Value creation and solid balance sheet Net profit attributable to the Group rose by +8.7% compared with first-half 2024, reaching €628.1 million, or 13.2% of sales. This performance mainly reflects the increase in operating profit, partially offset by a less favourable financial result and a one-point increase in the corporate income tax rate, which stood at 28% in first-half 2025. Free cash flow represented 10.5% of sales for the period, totalling €501.6 million, up +7.2% from first-half 2024. Net debt to EBITDA 1 ratio stood at 1.5 at June 30, 2025. In March 2025, Legrand successfully carried out a €500 million bonds issue maturing in 2035, followed in June 2025 by an €800 million issue of bonds convertible into new shares, maturing in 2033. These transactions increased the average maturity of the Group’s bond debt to nearly six years. In addition, the Group signed a new amendment and extension agreement to its revolving syndicated credit facility with seven banks, raising the notional amount to €1,050 million and the maximum maturity to June 2032. A ctive deployment of 2030 strategic roadmap Six acquisitions announced in the first half Legrand actively pursued its acquisition strategy in the first half of the year, announcing 1 six transactions since January, all in buoyant segments tied to the energy and digital transition: These acquisitions represent nearly €200 million in annualized additional revenue and are totally aligned with Legrand’s 2030 strategic ambitions. Numerous organic growth initiatives in the first half Over the past three years, Legrand has increased its first-half R&D spending by +17.1%, to deliver innovative solutions that support its customers’ growth. This strong innovation momentum is reflected in numerous product launches since the beginning of the year, including: Legrand also continued to roll out its commercial excellence initiatives , aiming to achieve a customer satisfaction rate (CSAT 2 ) of at least 80% and a net promoter score (NPS 3 ) of 50 in 2025. These efforts include the rollout of the Legrand Pro App for installers in Europe, as well as the enhancement and digitalization of retail point-of-sale material management in India. Lastly, the Group continued to invest in local industrial capacity to better serve its customers and support their growth. For example, Legrand announced a €22 million investment in its Montbard site in France, which specializes in steel wiremesh cable trays — essential for equipping latest-generation datacenters. 2030 targets reaffirmed Building on its achievements and taking into account market trends observed over the past 12 months — particularly in datacenters , where Legrand now expects double-digit average annual organic growth in its accessible market between 2025 and 2030 — the Group is confident in its ability to reach the upper end of its 2030 revenue target range, around €15 billion, compared with €8.6 billion in 2024. The consolidated financial statements for the first half of 2025 were subject to a limited review by the Group’s auditors and were adopted by the Board of Directors at its meeting on July 30, 2025. These consolidated financial statements, a presentation of 2025 first-half results, and the related teleconference (live and replay) are available at www.legrandgroup.com . Key financial dates About Legrand Legrand is the global specialist in electrical and digital building infrastructures. Its comprehensive offering of solutions for residential, commercial, and datacenter markets makes it a benchmark for customers worldwide. The Group harnesses technological and societal trends with lasting impacts on buildings with the purpose of improving life by transforming the spaces where people live, work and meet with electrical, digital infrastructures and connected solutions that are simple, innovative and sustainable. Drawing on an approach that involves all teams and stakeholders, Legrand is pursuing a strategy of profitable and responsible growth driven by acquisitions and innovation, with a steady flow of new offerings that include products with enhanced value in use (energy and digital transition solutions: datacenters, digital lifestyles and energy transition offerings). Legrand reported sales of €8.6 billion in 2024. The company is listed on Euronext Paris and is a component stock of the CAC 40, CAC 40 ESG and CAC Transition Climat indexes (code ISIN FR0010307819). https://www.legrandgroup.com Appendices Glossary Adjusted operating profit: Adjusted operating profit is defined as operating profit adjusted for: i/ amortization and depreciation of revaluation of assets at the time of acquisitions and for other P&L impacts relating to acquisitions, ii/ where applicable, impairment of goodwill. Cash flow from operations: Cash flow from operations is defined as net cash from operating activities excluding changes in working capital requirement. CSR: Corporate Social Responsibility. EBITDA: EBITDA is defined as operating profit plus depreciation and impairment of tangible and right of use assets, amortization and impairment of intangible assets (including capitalized development costs), reversal of inventory step-up and impairment of goodwill. Free cash flow: Free cash flow is defined as the sum of net cash from operating activities and net proceeds from sales of fixed and financial assets, less capital expenditure and capitalized development costs. Net financial debt: Net financial debt is defined as the sum of short-term borrowings and long-term borrowings, less cash and cash equivalents and marketable securities. Organic growth: Organic growth is defined as the change in sales at constant structure (scope of consolidation) and exchange rates. Payout: Payout is defined as the ratio between the proposed dividend per share for a given year, divided by the net profit attributable to the Group per share of the same year, calculated on the basis of the average number of ordinary shares at December 31 of that year, excluding shares held in treasury. Working capital requirement: Working capital requirement is defined as the sum of trade receivables, inventories, other current assets, income tax receivables and short-term deferred tax assets, less the sum of trade payables, other current liabilities, income tax payables, short-term provisions and short-term deferred tax liabilities. Calculation of working capital requirement Calculation of net financial debt Reconciliation of adjusted operating profit with profit for the period Reconciliation of EBITDA with profit for the period Reconciliation of cash flow from operations and free cash flow with profit for the period Scope of consolidation Disclaimer This press release may contain forward-looking statements which are not historical data. Although Legrand considers these statements to be based on reasonable assumptions at the time of publication of this release. they are subject to various risks and uncertainties that could cause actual results to differ from those expressed or implied herein. Details on risks are provided in the most recent version of Legrand Universal Registration Document filed with the Autorité des marchés financiers (French Financial Markets Authority. AMF). which is available on-line on the websites of both AMF ( www.amf-france.org ) and Legrand ( www.legrandgroup.com ). Investors and holders of Legrand securities are reminded that no forward-looking statement contained in this press release is or should be construed as a promise or a guarantee of actual results by Legrand or anyone else. which are liable to differ significantly. Therefore such statements should be used with caution taking into account their inherent uncertainty. The forward-looking statements contained in this press release are only valid on the date of its publication. Subject to applicable regulations. Legrand does not undertake to update these statements to reflect events or circumstances occurring after the date of publication of this release. This press release does not constitute an offer to sell. or a solicitation of an offer to buy Legrand securities in any jurisdiction. View source version on businesswire.com: https://www.businesswire.com/news/home/20250730579669/en/ Contacts investor relations & Financial communication Ronan MARC (Legrand) +33 1 49 72 53 53 [email protected] Press relations Lucie DAUDIGNY (TBWA) +33 6 77 20 71 11 [email protected]