(BFM Stock Exchange) – The French specialist in electrical equipment confirms its annual objectives after having unveiled a dynamic first quarter activity, once again drawn by data centers.

At the end of April, Schneider Electric had greatly disappointed the market by revealing growth in the first quarter lower than expectations. The residential building and project discrepancies in its data centers segment (data centers) had then penalized the growth of the specialist in electrical equipment.

This disappointing publication could then suggest a less tonic dynamic for Legrand in the first quarter. The specialist in electrical equipment has more than reassured investors, by revealing results above expectations this Wednesday, May 7.

Between January and late March, Legrand published a turnover up 12.3% over a year, to reach 2.228 billion euros. Sales are organic rise – that is to say by excluding the effects of perimeter and exchange – of 7.6%, which marks an acceleration from one quarter to the other. In the fourth quarter of 2024, Legrand sales had increased by 6.2% still on an organic basis.

Better still, Legrand has outlined market expectations, since the consensus quoted by Oddo BHF, hoped only an increase in income of 4.9% still in organic data over the first three months of 2025. And the contrast is striking from one year to the next. The group had started exercise 2024 on a bad start, then accusing an organic decrease of 5.4% and heavily paying for its exposure to a building market in difficulty.

Growth engine data centers

Once is not custom, the North America and Central zone has further drawn the group’s activity. Between January and the end of March, income in this area increased by 18.7% in comparable data including an increase in sales of 20.2% in the United States, thanks in particular to the “remarkable performance” of datacenters (data centers).

The group also explodes the meters, the consensus cited by Royal Bank of Canada (RBC) awaited an increase in activity of only 9.2% in this area.

Europe remains “poorly oriented”, describes Oddo BHF with a decline in turnover of 0.3% in organic, when the consensus cited by RBC was much more optimistic and aimed at organic growth of 1.6%. Legrand attributes this withdrawal to “a building market which remains generally sluggish in most countries”.

Regarding the other lines of the income statement, the operating profit (EBIT) adjusted in the first quarter increased by 13.1% to 470.4 million euros. This indicator has exceeded expectations, housed at 470 million euros, according to the consensus quoted by Oddo BHF.

The corresponding margin increases by 20 base points (0.2 percentage point) over one year, reaching 20.7%. This rate comes above the consensus cited by the previously quoted design office (20.5%).

“Compared to consensus, the North America and Central Zone was the most efficient with a margin of 20.4% (190 base points above). The margin in Europe stands online at 22.6% while the margin remains of the world is 16.1% (270 base points)”, details RBC.

The net profit increased by 6.3% to wait 293 million euros, and therefore stands out online with expectations “, remarks Oddo BHF.

“Our first quarter 2025 results are very solid and in accordance with our anticipations, both in terms of turnover and margin or free cash,” said Benoît Coquart, Managing Director of Legrand.

On the Paris Stock Exchange, the market appreciates the publication of the specialist in electrical infrastructure. The Legrand title increased by 2.50% around 11:10 am, displaying the highest increase in a CAC 40 which shows signs of feverishness before the announcements of the American Federal Reserve.

Forecasts 2025 renewed

At the end of this tonic start of the year, Legrand has renewed its forecasts for 2025. The group provides growth between 6% and 10%. The group specifies that this forecasting can be understood excluding exchange effects. The margin of EBIT adjusted after acquisitions is still expected stable compared to 2024, around 20.5%.

“For 2025, consensus anticipates 4% organic growth (8.2% by integrating the embedded effect of acquisitions) and 20.5% margin. It should slightly adjust its estimates according to us (1-2 %%), estimates Oddo BHF

Management was also expressed in customs duties set up on the Trump administration, and their effects on Legrand’s activity. She did not hide that this customs policy will have repercussions on the group but added that the company would be able to compensate for them.

“Almost half of what Legrand sells in the United States is imported. Legrand has significant exposure to customs duties, with two supply sources that are Mexico and China,” Benoît Coquart told BFM Buisness in Good Morning Business on Wednesday, May.

“The scenario on which we are tamulating is that of a gradual normalization of customs duties, added the manager. But these customs duties will not be painless, since Legrand estimates their cost between” 150 to 200 million dollars “, which will be offset” by punctual price increases, and mobility of the supply chain “to lower customs rights”. “We have a complete action plan which will allow us to fully compensate for the impact of these rates in our accounts,” said Benoît Coquart this Wednesday morning.