Legrand: Revenue Up by 11.4% in Q1, Yet Debt Climbs to €4.67 Billion
Legrand announced on Thursday its first quarter 2026 results showing an 11.4% increase in revenue to €2.537 billion, with a stable adjusted operating margin of 20.7%. However, the acquisition strategy has increased net debt, which climbed to €4.67 billion, up from €3.03 billion a year earlier. A key issue for investors is the group's ability to integrate these acquisitions without eroding its margins.
Revenue Increases, Margins Preserved Despite Integrations
Revenue reached €2,537.6 million in the first quarter of 2026, up 11.4% year-on-year (from €2,277.8 million the previous year). The adjusted operating result hit €524.7 million, with an adjusted operating margin of 20.7%, identical to the same period in 2025.
The net result attributable to the Group was €334.9 million, up 14.2% compared to €293.3 million recorded in the first quarter of 2025. Earnings per share (EPS) stood at €1.281, up from €1.119 a year earlier, an increase of 14.5%.
These results benefited from the partial consolidation of several acquisitions made since late 2024 (APP, Power Bus Way, Performation, Computer Room Solutions, Linkk Busway Systems, Amperio Project, and Quitérios). During the quarter, the group also integrated Green4T (Brazil, nearly 750 employees, €45 million in annual revenue), Kratos Industries (USA, 325 employees, $100 million in annual revenue), and TES (UK, 280 employees, €85 million in annual revenue).
Cash Reserves Decline but Free Cash Flow Improves
Cash and cash equivalents stood at €1,940.1 million as of March 31, 2026, down by €441.1 million from the end of the previous year (€2,381.2 million). This contraction primarily reflects the outlays related to acquisitions, which amounted to €522.3 million during the quarter, as well as an increase in inventory of €106.2 million (related to the business cycle) and trade receivables of €250.5 million.
Nevertheless, free cash flow increased to €221.0 million (8.7% of revenue) from €188.1 million a year earlier. Net financial debt peaked at €4,670.5 million as of March 31, 2026, compared to €3,031.6 million a year earlier, an increase of 53.9% linked to the financing of the group's strategic acquisitions.
Massive Acquisitions and Aim for 10-15% Annual Growth
Between January and March 2026, Legrand deployed a strategy of multiple acquisitions across its three major geographic zones. Additionally, in April 2026 (after the close of the quarter), the group acquired Keydak, a Chinese leader in racks based in Guangzhou, with over 330 employees and annual revenue exceeding €60 million.
For the full year 2026, Legrand targets a revenue growth of between 10% and 15%, with an adjusted operating margin maintained between 20.5% and 21%. In the first quarter, Legrand reported an 11.4% growth in revenue and a stable adjusted operating margin of 20.7%, consistent with the first quarter of 2025. The challenge lies in integrating the acquired scope without deteriorating this profitability.
