Legrand (LR) H2 2024 earnings summary

Executive summary

• 2024 targets fully achieved, with sales growth of 3.9% (organic and acquisitions), strong data center expansion now at 20% of sales, and robust profitability and cash generation.

• Nine acquisitions in 2024 added €430 million in annual sales, expanding presence in data centers, connected health, and Oceania.

• Customer satisfaction improved, with CSAT at 80% and NPS at 80 in 2024.

• CSR roadmap achievement rate at 113% for 2024, with a 53% reduction in direct carbon emissions over three years.

• Initiatives in 2024 position the company well for 2030 ambitions, with 2025 targets set for accelerated growth.

Financial highlights

• 2024 sales reached €8,648.9 million, up 2.8% year-over-year; organic plus M&A sales up 3.9%.

• Adjusted operating margin at 20.5% after acquisitions; gross profit margin at 51.6%.

• Net profit reached €1,166.4 million (13.5% of sales); free cash flow at €1,290.5 million (14.9% of sales), with 111% conversion rate.

• Net debt at €3.0 billion, with net debt/EBITDA ratio at 1.5 at year-end.

• Proposed 2024 dividend of €2.20 per share, up 5.3%, maintaining a payout ratio close to 50%.

Outlook and guidance

• 2025 sales growth targeted at +6% to +10% (organic and acquisitions, excluding FX), with stable adjusted operating margin.

• At least 100% CSR achievement rate targeted for 2025.

• Free cash flow expected to remain at 13%-15% of sales, consistent with prior years.

• 2030 ambitions: €12–15 billion sales, ~20% adjusted EBIT margin, €10 billion free cash flow (2025–2030), 80% eco-responsible sales.