Download PDF

1. Company Snapshot

1.a. Company Description

Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide.The company offers MCBs, RCDs, and din rail equipment, including residual current circuit breakers, RCBOs, add-on modules and accessories, surge protective devices, other control and signaling devices, and time and light-sensitive switches, as well as dimmers, relays, transformers, power supplies, and accessories; ACBs, MCCBs, head equipment, and busbar systems; enclosures and accessories; equipment and accessories; home network, home automation, and hotel equipment; wiring accessories; weatherproof wiring accessories and other installation equipment; lighting management, emergency lighting, access control, and safety equipment; UPS and LCS products, cable management systems, equipment, and accessories; and mosaic wiring accessories.Its products are used in hotels, offices, data centers, industrial sites, shops, hospitals, schools, and universities, as well as residential, commercial, and industrial buildings.


Legrand SA was founded in 1865 and is headquartered in Limoges, France.

Show Full description

1.b. Last Insights on LR

Legrand's recent performance was driven by its robust multi-year growth trajectory. Despite a recent share price pullback, the company's longer-term track record remains solidly positive. Legrand's valuation appears attractive after the recent decline. The company's diversified portfolio and operational efficiency support its growth prospects. Additionally, the recent earnings performance of its peers, such as Stride, highlights the potential for growth in the education and infrastructure sectors. Legrand's ability to maintain its profitability and navigate market challenges positions it for future success.

1.c. Company Highlights

2. Legrand's Strong 2025 Performance and Promising 2026 Outlook

Legrand's financial performance in 2025 was impressive, with record sales growth and high profitability. The company's adjusted operating margin stood at 20.7% of sales after acquisitions, representing a 10 basis point organic improvement. Net profit attributable to the group was EUR 1.2 billion, or 13.1% of sales. Earnings per share (EPS) came in at EUR 1.39, beating analyst estimates of EUR 1.35. The company's free cash flow was a solid EUR 1.3 billion, or 14% of sales, with a conversion rate of 107%. As noted by Franck Lemery, the company's financial performance was driven by a solid adjusted operating margin and strong free cash flow.

Publication Date: Feb -13

📋 Highlights
  • 2026 Sales Growth Target: Legrand aims for 10-15% sales growth (excluding currency effects), with organic growth of 4-7% and acquisition-driven growth of 6-8%.
  • 2025 Financial Performance: Adjusted operating margin reached 20.7% (10 bps organic improvement), with free cash flow of EUR 1.3 billion (14% of sales) and a 107% conversion rate.
  • CSR Roadmap Achievement: Exceeded 110% of 2025-2027 CSR targets, with energy/digital transition offerings accounting for 53% of total sales.
  • Data Center Growth Momentum: 2026 data center sales grew 40% (50% in the US), driven by high-density infrastructure, with 40% of sales contributing to energy efficiency improvements.
  • 800V DC Architecture Impact: 20% of sales face neutral-to-negative impact, while 80% benefit from growth in AC powertrain, cooling, and physical compute infrastructure.

Revenue Growth and Guidance

Legrand's revenue growth in 2025 was driven by its strategic roadmap, which includes accelerated growth and value creation. The company is targeting sales growth of between 10% and 15% in 2026, excluding currency effects, with organic growth of between 4% and 7% and acquisition growth of between 6% and 8%. Analysts estimate next year's revenue growth at 7.6%, indicating a moderate increase.

Data Center Business and 800-volt DC Architecture

Legrand's data center business grew significantly in 2025, with a growth rate of around 40%. The company's data center business is expected to continue growing, driven by its comprehensive range of products and strong relationships with customers. Benoît Coquart noted that the 800-volt DC architecture has a neutral to negative impact on around 20% of Legrand's sales, but a neutral to positive impact on 80% of sales. The company is developing products to address this shift, including DC busways and partnering with companies to fill gaps in its product offering.

Valuation Metrics

Legrand's current valuation metrics indicate a premium valuation. The company's Price-to-Earnings (P/E) ratio is 32.09, and its Price-to-Sales (P/S) ratio is 4.19. The EV/EBITDA ratio is 18.75, indicating a relatively high valuation. However, the company's Return on Equity (ROE) is 16.75%, and its Return on Invested Capital (ROIC) is 9.18%, indicating a strong ability to generate returns.

Outlook and Risks

Legrand's guidance for 2026 is promising, with expected sales growth and continued investment in its data center business. However, the company faces risks related to changes in raw material prices and the impact of the 800-volt DC architecture on its product offerings. Benoît Coquart emphasized that the company is adapting to changes in the market and is well-positioned to capitalize on growth opportunities. The renovation market in Europe is expected to be flat to slightly positive in 2026, and the company is cautious about the outlook for France but is slightly more positive due to the announcement of the housing plan. Germany and Southern Europe are showing positive signals, but the company will need to wait for construction KPIs to flow into its numbers before assessing the true impact.

3. NewsRoom

Card image cap

Legrand: Statement of Transactions in Own Shares from 2026-02-09 to 2026-02-13

Feb -16

Source:

Card image cap

Stride K12 Tutoring Validation Raises Questions On Future District Demand

Feb -14

Source:

Card image cap

Assessing Stride’s Valuation After Recent Share Price Strength And Mixed Long Term Returns

Feb -14

Source:

Card image cap

Stride Stock Gains 20% in a Month: Buy Now or Hold Tight?

Feb -13

Source:

Card image cap

Legrand Signs Share Buyback Agreement

Feb -13

Source:

Card image cap

Legrand SA (LGRDY) Full Year 2025 Earnings Call Highlights: Record Sales Growth and Strategic ...

Feb -12

Source:

Card image cap

Legrand: 2025 Full-Year Results

Feb -12

Source:

Card image cap

Stride's Platform Fixes Progress: Is Execution Risk Finally Behind It?

Feb -10

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Electric Equipment

Expected Growth: 5.5%

Legrand SA's electrical and industrial control products segment is driven by increasing demand for energy efficiency, industrial automation, and smart building solutions.

7. Detailed Products

Electrical Distribution

Legrand's electrical distribution products provide safe and efficient distribution of electrical power in buildings and industries.

Digital Infrastructure

Legrand's digital infrastructure products provide structured cabling systems, data centers, and network infrastructure solutions.

Building Automation

Legrand's building automation products provide integrated solutions for controlling and monitoring building systems such as lighting, HVAC, and security.

Cable Management

Legrand's cable management products provide solutions for cable routing, protection, and organization in buildings and industries.

Industrial Control and Automation

Legrand's industrial control and automation products provide solutions for industrial automation, control, and monitoring.

User Interface

Legrand's user interface products provide solutions for human-machine interface, operator panels, and industrial computers.

Residential Solutions

Legrand's residential solutions provide products and systems for electrical distribution, lighting, and home automation.

8. Legrand SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Legrand SA operates in the electrical equipment industry, where substitutes are limited. However, the increasing adoption of smart home devices and energy-efficient solutions may pose a moderate threat to the company's products.

Bargaining Power Of Customers

Legrand SA has a diverse customer base, including electrical contractors, builders, and homeowners. While customers have some bargaining power, the company's strong brand reputation and wide distribution network mitigate this threat.

Bargaining Power Of Suppliers

Legrand SA relies on a network of suppliers for raw materials and components. While the company has some bargaining power, suppliers may still exert pressure on prices and delivery terms, particularly in times of high demand.

Threat Of New Entrants

The electrical equipment industry has high barriers to entry, including significant capital requirements and regulatory hurdles. New entrants may struggle to compete with established players like Legrand SA.

Intensity Of Rivalry

The electrical equipment industry is highly competitive, with several established players vying for market share. Legrand SA faces intense competition from companies like Schneider Electric, Siemens, and ABB.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.65%
Debt Cost 3.95%
Equity Weight 59.35%
Equity Cost 8.44%
WACC 6.62%
Leverage 68.50%

11. Quality Control: Legrand SA passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vinci

A-Score: 6.7/10

Value: 6.3

Growth: 6.1

Quality: 4.7

Yield: 6.9

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Cembre

A-Score: 6.4/10

Value: 1.6

Growth: 6.3

Quality: 8.0

Yield: 6.2

Momentum: 9.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Legrand

A-Score: 5.3/10

Value: 2.0

Growth: 5.4

Quality: 6.8

Yield: 2.5

Momentum: 8.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
ABB

A-Score: 5.1/10

Value: 1.3

Growth: 5.4

Quality: 7.0

Yield: 3.8

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
BAE Systems

A-Score: 4.9/10

Value: 2.4

Growth: 6.8

Quality: 4.9

Yield: 5.0

Momentum: 4.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Saint-Gobain

A-Score: 4.8/10

Value: 4.7

Growth: 5.8

Quality: 4.5

Yield: 4.4

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

154.0$

Current Price

154$

Potential

-0.00%

Expected Cash-Flows