Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Legrand has increased its 2026 sales growth guidance after reporting stronger-than-expected first-half revenue, supported by sustained demand for data centre infrastructure, particularly in the United States. The company now expects organic sales growth of 16% to 19%, excluding currency effects, compared with its earlier outlook of 10% to 15%. While demand from data centres continues to support growth, Legrand said construction markets in Europe and the United States remain weak. The company also highlighted foreign exchange headwinds and rising raw material costs as key factors to watch in the coming months.
French electrical and digital building infrastructure company Legrand has raised its sales growth guidance for 2026 after reporting better-than-expected revenue for the first half of the year, driven by continued investment in data centre infrastructure. The company now expects sales to grow between 16% and 19% at constant exchange rates, compared with its earlier forecast of 10% to 15%. Following the announcement, Legrand's shares gained around 2% during early trading in Paris.
Legrand reported first-half sales of EUR 5.4 billion (USD 6.16 billion), higher than analysts' average estimate of EUR 5.3 billion, according to the company's consensus data.
The United States remained the company's largest market, contributing 44.4% of total group revenue. Continued investments in data centres across the country remained the primary growth driver during the first half.
Chief Executive Benoit Coquart said data centres account for nearly half of Legrand's annual revenue in the United States. He noted that the company's strong presence in this segment helped North America record much stronger growth than other regions during the first half of the year.
Legrand's adjusted operating profit stood at EUR 1.12 billion (USD 1.28 billion) in the first half, broadly matching analysts' expectations.
The company also pointed out that only about 30% of its data centre-related sales come from markets outside the United States. As a result, many of its European businesses remain more exposed to the performance of the construction sector than to data centre investments.
Commenting on market conditions, Coquart indicated that the company has not yet seen clear signs of a recovery in construction activity in either Europe or the United States. The slower construction environment continues to weigh on several of Legrand's businesses outside the fast-growing data centre segment.
J.P. Morgan also observed that growth across Europe remained mixed. While markets such as Italy and Turkey continued to perform well, these gains were not enough to offset weaker demand across several other European countries.
Legrand further said that rising raw material and component costs continue to pose a business risk. However, the company has not experienced any direct operational impact from the ongoing conflict in the Middle East.
Currency movements also affected the company's financial performance. Legrand reported a 3.7% negative foreign exchange impact during the first quarter, mainly due to fluctuations in the U.S. dollar and the Indian rupee.
Demand for electrical and digital infrastructure linked to artificial intelligence, cloud computing and hyperscale data centres has become an important growth engine for companies supplying power distribution, cable management and digital building solutions. While this trend continues to support Legrand's performance, the company remains cautious about the slower recovery in traditional construction markets, particularly in Europe.
Source Reuters
Advertisement
Facebook
Whatsapp
