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• Sales Growth: 11.2% increase excluding FX, with 7.6% organic growth and 3.3% from acquisitions.

• FX Impact: Positive 1% impact on the quarter.

• Geographical Sales Performance: North and Central America sales up 18.7%, Europe sales down 0.3%, Rest of the World sales up 4.8%.

• Adjusted Operating Margin: 20.7% in Q1 2025.

• Net Profit: EUR293 million, representing 12.9% of sales.

• Free Cash Flow: EUR188 million, 8.3% of sales.

• Net Debt-to-EBITDA Ratio: 1.5 at the end of the quarter.

• Acquisitions: Two acquisitions totaling EUR50 million in connected healthcare and data centers.

• Proposed Dividend: EUR2.2 per share, up 5% from last year.

• Warning! GuruFocus has detected 6 Warning Sign with OSTO:NYAB.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Legrand SA (LGRDY) reported strong sales growth in Q1 2025, with an 11.2% increase excluding FX, driven by a 7.6% organic growth and a 3.3% positive impact from acquisitions.

• The company achieved a solid adjusted operating margin of 20.7% in Q1 2025, demonstrating strong operational leverage.

• Legrand SA (LGRDY) confirmed its full-year targets, projecting sales growth between 6% and 10% organically and through acquisitions.

• The data center segment showed outstanding performance, with growth exceeding 40%, and is expected to continue strong growth throughout 2025.

• Legrand SA (LGRDY) announced two acquisitions in Q1 2025, totaling EUR50 million in acquired 12-month sales, enhancing its leadership in connected healthcare and data centers.

Negative Points

• Sales in Europe were almost flat, with a slight decline of 0.3% organically, due to a sluggish building market.

• The rest of the world saw mixed results, with sales growth in India and the Middle East offset by declines in China and Brazil.

• The company faces challenges from US tariffs, with a significant portion of its US COGS being imported, leading to potential cost increases.

• Legrand SA (LGRDY) anticipates a negative impact on financial results due to rising corporate income tax and financial expenses.

• The building market in North America, excluding data centers, remains slightly down, with no recovery seen yet in the residential or office markets.

Q & A Highlights

Q: Can you provide more details on the growth in North America, particularly in the data center segment? A: Benoit Coquart, CEO, stated that the growth rate of data centers in the US and at the group level was higher than 40%. The data center segment experienced fantastic growth, and this trend is expected to continue due to a strong order book. However, the non-data center business was slightly down, both in North America and globally.