Rapid Data Centre Expansion Boosts Legrand's Quarterly Performance
Photo by Grispb / Adobe stock Published by our website with AFP
Legrand, a prominent French electrical equipment specialist, recorded remarkable growth in its first-quarter sales, fueled by data centers and robust overall results. CEO Benoît Coquart expressed confidence in the company's objectives for 2025, despite relentless global trade turbulence. First-quarter sales climbed 12.3% to a whopping €2.28 billion, and net income jumped 6.3% to €293 million. The adjusted operating income (post-acquisitions) soared 13.1% to €470 million, with an adjusted operating margin of 20.7%.**
"We're relentlessly executing our strategic plan to 2030," reportedly relayed by Benoît Coquart in a conference call, highlighting data centers as a significant contributor—they accounted for around 20% of the group's sales in 2024. By 2025, Legrand targets sales between €12 and €15 billion, compared to 2024's €8.6 billion.
When queried about the trade tariffs imposed by the Trump administration, Benoît Coquart estimated that the impact would be significant, amounting to €150-€200 million. However, he insisted that the group would counterbalance these costs through flexible pricing strategies and nimble supply chain management. Similarly, the International Monetary Fund (IMF) predicts that trade tariffs will affect global growth, but not to the extent of triggering a recession.**
CSR, or Corporate Social Responsibility, lies at the heart of Legrand's business strategy, eliciting a holistic approach that integrates social, environmental, and economic factors into its operations. The company's CSR initiatives focus on sustainability and innovation, environmental and social governance, diversity and inclusion, a circular economy, and strategies for mitigating climate change. Legrand also prioritizes health and safety with dedicated management roles within its logistics department.**
In the United States, responsible for 37.7% of the group's activity, first-quarter sales increased 20.2% thanks to the robust performance of offers designed for data centers. Despite a generally sluggish construction market in Europe (accounting for 40.9% of sales), Legrand aims for sales growth of between 6% and 10% (organic and by acquisition, excluding exchange rate effects) by 2025, adjusting for the current global macroeconomic circumstances and evolving trade policies.**
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Legrand sets its sights on sales growth between 6% and 10% by 2025, withstanding the unpredictable macroeconomic climate and normalizing trade policies. The company is also aiming for a stable adjusted operating margin (post-acquisitions) and a CSR (Corporate Social Responsibility) achievement rate of at least 100% in the first year of its 2025-2027 roadmap.**
The American trade offensive poses a substantial challenge for Legrand, estimated to cost between €150-€200 million. The company aims to mitigate these costs through flexible pricing and agile supply chain management.**
What is CSR, corporate social responsibility?
CSR represents a company's effort to integrate societal concerns, environmental considerations, and economic growth into its day-to-day operations. As Legrand embarks on its growth journey, prioritizing sustainability, innovation, and social responsibility helps create long-term value for stakeholders and society at large.**
Sources:
- Legrand's CSR roadmap 2025-2027: Press Release
- Legrand's sustainability performance: Corporate Responsibility Report 2021
- Legrand's ESG alignment: ESG Factsheet
- Legrand's acquisition of CRS: Press Release
- Legrand's EH&S in logistics: Sustainability Report 2021
- Despite the significant impact of trade tariffs estimated to be between €150-€200 million, Legrand plans to counterbalance these costs through flexible pricing strategies and nimble supply chain management, as outlined in their strategic plan towards 2030.
- The growth trajectory of Legrand, a leading entity in data-and-cloud-computing, is fueled by significant contributions from data centers, which accounted for around 20% of the group's sales in 2024 and are expected to drive a substantial portion of its sales goal of €12-€15 billion by 2025.
