The building electrical and digital infrastructure specialist (+7.05%, at 154.90 euros) leads the main Paris index. The stock hit a record high on the back of robust annual results and an upward revision of its medium-term targets.
Over the past year, Legrand reported a 9.6% increase in revenue, reaching 9.48 billion euros, slightly above the consensus forecast of 9.46 billion euros. Data centers accounted for 26% of the group's revenue. "Organic growth came in at 7.7% for the full year, including 6.2% in the fourth quarter alone (consensus at 4%), after 6.7% in the third quarter. Data centers continued to play a key role despite a tougher comparison base," notes Oddo BHF, which maintains a neutral stance on the stock.
Adjusted operating profit rose by 10.5% to 1.96 billion euros, in line with expectations.
For 2026, the group is targeting sales growth between 10% and 15% and an adjusted operating margin after acquisitions of 20.5% to 21.0% of revenue.
Legrand will propose a dividend payment of 2.38 euros per share for 2025.
"Legrand is showing clear optimism, emphasizing that its business model will benefit from the increased use of direct current electrical distribution in data centers," notes Jefferies, which has a buy rating on the stock that has posted the third largest gain on the CAC 40 (+21.57%) since January 1.
Legrand is the global specialist in electrical and digital building infrastructure. Its comprehensive range, suitable for the commercial, industrial, and residential segments of the low voltage market, makes Legrand a benchmark for customers worldwide. Close to its markets and focused on its customers, Legrand has commercial and industrial operations in nearly 90 countries. The group benefits from solid, long-term growth levers.
Geographically, 40.4% of net sales are generated Europe region, 42.3% in North and Central America and 17.3% in the rest of the world.
In terms of product offering, 53% of its sales come from products with enhanced value in use (data centres, energy transition and digital lifestyles), and 47% from essential infrastructures products.
In addition, the group benefits from very solid social and technological megatrends which will support its long-term development.
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