Legrand (LR) H1 2024 earnings summary

Executive summary

• H1 2024 net sales declined by 2.0% year-over-year to €4,210.3 million amid a depressed building market, but Q2 saw a 1.5% organic rebound driven by datacenter business.

• Margins remained strong, with adjusted operating margin at 20.7% and net profit at 13.7% of sales (€577.6–578 million).

• Five acquisitions were announced in 2024, including three in datacenters, adding over €200 million in annualized revenue.

• Product innovation continued with new launches in wiring devices, datacenter solutions, and energy efficiency.

• Full-year targets for growth and margin reaffirmed, with a focus on datacenters and innovation.

Financial highlights

• H1 2024 sales: €4,210.3 million, down 2.0% year-over-year; organic decline –2.0%, scope +0.4%, FX –0.4%.

• Adjusted operating profit: €873.1 million (–8.5%); margin 20.7% (20.8% before acquisitions).

• Net profit: €577.6–578 million (13.7% of sales).

• Free cash flow: €468.1–468 million (11.1% of sales), down 42.5% year-over-year.

• Net debt/EBITDA: 1.8–1.88; net financial debt €3,429.9 million.

Outlook and guidance

• 2024 full-year guidance maintained: low single-digit sales growth (organic plus acquisitions), adjusted operating margin before acquisitions between 20.0% and 20.8%.

• Organic growth expected between slightly negative and slightly positive for 2024.

• Free cash flow to sales targeted at 13%-15%, likely at the lower end to support datacenter growth.

• At least 100% CSR achievement rate for the final year of the 2022–2024 roadmap.