Legrand raises 2026 sales growth guidance on data centre demand
Legrand’s Upgraded Guidance Driven by Data Centre Demand
By Mathias de Rozario and Aleksandra Kret
July 29 (Reuters) - French electrical and digital building infrastructure group Legrand raised its 2026 sales growth guidance on Wednesday after strong demand from data centres helped drive first-half revenue above market expectations.
Revised Sales Growth Forecast
The company now expects sales growth of 16% to 19%, excluding currency effects, up from a previous forecast of 10% to 15%.
Shares in Legrand rose 2% in early Paris trading.
Financial Performance in the First Half
Revenue and Market Expectations
First-half sales reached 5.4 billion euros ($6.16 billion), exceeding the 5.3 billion euros expected by analysts on average in a company-provided consensus.
Regional Growth Drivers
The United States, which accounted for 44.4% of group revenue, remained the main driver of growth as investment in data-centre infrastructure continued to support demand.
North America’s Contribution
"Data centres account for almost half of our annual U.S. turnover, so we have a strong presence there, and that is one of the reasons why, over the half-year, North America has seen much stronger growth than the rest of the world," Chief Executive Benoit Coquart told journalists.
Operating Profit
Legrand posted adjusted operating profit of 1.12 billion euros ($1.28 billion) in the first half, broadly in line with analysts' expectations.
Geographical and Market Challenges
European Market Dependence
The company said only around 30% of its data-centre sales are generated outside the United States, leaving many of its European operations more dependent on construction-market trends.
"At the moment, there are no real signs of a recovery in the construction market, either in Europe or in the United States," Coquart said.
Regional Growth Variations
J.P. Morgan said growth in Europe remained uneven, with strength in Italy and Turkey failing to offset declines in most other markets in the region.
Risks and Currency Impacts
Raw Material and Geopolitical Risks
Coquart said rising raw-material and component costs remained a risk, though Legrand has not seen a direct impact from the conflict in the Middle East.
Foreign Exchange Effects
The company was also hit by a 3.7% adverse foreign-exchange effect, mainly due to movements in the U.S. dollar and the Indian rupee during the first quarter.
($1 = 0.8770 euros)
(Reporting by Mathias de Rozario and Aleksandra Kret in Gdansk; Editing by Matt Scuffham)
