Legrand Raises 2025 Sales Growth Guidance After Strong First Half
The electrical and digital building infrastructure specialist increased its full-year sales growth target to between 10% and 12%.
Legrand has raised its full-year 2025 sales growth guidance to a range of 10% to 12%, up from a previous target of 6% to 10%. The company, a specialist in electrical and digital building infrastructures, reported first-half revenue of 4,774.3 million euros.
This revenue represents a 13.4% increase compared to the 4,210.3 million euros recorded in the first half of 2024. Organic growth for the period was 9.0%, driven by a 20.5% increase in North and Central America, 3.3% in the Rest of the World, and 1.0% in Europe. The company said the overall result included a 5.5% increase from acquisitions and a 1.4% decrease due to currency exchange effects.
Profitability remained stable as the adjusted operating margin reached 21.0% of sales. On a perimeter constant with 2024, the adjusted operating margin was 20.9%, an increase of 0.2 point over the first half of 2024. The adjusted operating result rose 14.9% to 1,003.4 million euros.
Net income attributable to the Group grew 8.7% to 628.1 million euros. The company attributed this growth to the increase in operating results, though it noted this was partially offset by a 1 point increase in the corporate tax rate to 28% and an unfavorable evolution in financial results. Free cash flow rose 7.2% to 501.6 million euros, representing 10.5% of revenue.
Legrand is currently executing a plan to address evolving international customs policies, specifically in the United States. This action plan includes targeted sales price increases, cost-saving measures, and adjustments to supply chains and industrial setups.
To manage its balance sheet, the company issued 500 million euros in bonds due 2035 in March 2025 and 800 million euros in convertible bonds due 2033 in June 2025. It also extended a syndicated revolving credit agreement with seven banks to a nominal amount of 1,050 million euros with a maximum maturity of June 2032.
For the remainder of 2025, Legrand expects organic growth between 5% and 7% and acquisition growth of approximately 5%. The company now targets an adjusted operating margin between 20.5% and 21.0% of sales.