Legrand (LR) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 sales growth of 12.3% year-over-year to €2,277.8 million, with organic growth of 7.6% and significant contributions from acquisitions and currency effects, driven by exceptional datacenter performance and robust execution of the strategic plan.

• Adjusted operating margin reached 20.7% after acquisitions, with net profit at 12.9% of sales and free cash flow at 8.3% of sales.

• Two acquisitions announced in Q1 2025, strengthening positions in connected healthcare (Netherlands) and datacenter infrastructure (Australia).

• Launched the 6th CSR roadmap (2025-2027), focusing on climate, diversity, circular economy, customer service, and responsible business.

• Confirmed full-year targets despite a volatile macroeconomic and trade environment.

Financial highlights

• Net sales rose to €2,277.8 million (+12.3% year-over-year); organic growth was 7.6%, with acquisitions contributing 3.3% and FX 1.0%.

• Adjusted operating profit increased 13.1% to €470.4 million (20.7% of sales); net profit attributable to the Group was €293.3 million (+6.3%).

• Free cash flow reached €188.1 million (8.3% of sales), up 28.7% year-over-year.

• EBITDA for Q1 2025 was €528.1 million, up from €471.1 million in Q1 2024.

• Gross margin was 52.4% of sales, slightly down from 53.1% in Q1 2024.

Outlook and guidance

• 2025 full-year targets confirmed: sales growth of 6%-10% (organic and acquisitions, excluding currency), stable adjusted operating margin, and at least 100% achievement of the first year of the 2025-2027 CSR roadmap.

• Data center growth expected at the higher end of 15%-20% for 2025, with additional pricing actions to offset tariffs.

• Full-year currency effect expected to be close to -2% based on April 2025 rates.

• Cautious on building market volumes due to macro uncertainty and potential trade war impacts.

• Macroeconomic outlook and normalizing customs policies considered in guidance.