Legrand Shares Climb Over 3.5%, Leading the CAC 40
The electrical infrastructure specialist continues its recovery from the opening trades, amid a renewed appetite for cyclical stocks. The stock confirms the momentum started the previous day and consolidates its position at the top of the Paris index.
The Stock Takes the Lead in the CAC 40, Marking Its Best Week Since Spring
Legrand shares gained 3.72% to €150.40, leading the CAC 40 from the opening, while the index rose by 0.43%. This movement extends the rebound of nearly 6% recorded the previous day, which had already placed the stock at the top of the index. Over the week, the stock now shows a gain of more than 10%, erasing almost all of the decline since the historic peak on May 7. The performance is built in a Paris market supported by the retreat in oil prices and geopolitical easing following the memorandum signed between Washington and Tehran.
Airbus (+2.87%) and Schneider Electric (+2.62%) accompany the rise, indicating a renewed interest in industrial cyclicals. Over one year, Legrand maintains a gain of more than 35%. The context remains favorable on the activity side: external growth has accelerated with the acquisition of American Girtz Industries announced on June 10, the sixth operation of the year following SRS Power Engineering in Malaysia. These two cases target data centers, a segment where the Limoges-based group continues to strengthen its exposure.
Crossing the MM50 Confirms Technical Recovery After Mid-June Low
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The rebound was initiated when the RSI fell to 29 on June 15, in the oversold zone, after breaking the support at €143.80 at the beginning of June. The stock today moves back above its 50-day moving average (€148.51), with a gap of 1.27%, and reinforces its position above the MM20 (€144.69) and MM200 (€139.54). The RSI returns to 51, in neutral territory, which leaves room before a possible overheating signal.
The next friction zone is at €157.40, a level that had served as a ceiling in the spring before the record high of €166.95 on May 7. The construction sector remains a fundamental point of vigilance, with a construction climate in France at -17.2 in May and a production decline of 2.8% year-on-year, but the group's increasing exposure to data centers and the energy transition continues to distance Legrand from dependence on the European residential cycle.
SectorMachines et équipements industriels›Équipements électroniques
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Context
Period
Period: S1 2026
Key reported figures
Revenue: 5 400 millions d'euros
Quarterly revenue: 5 400 millions d'euros
Revenue growth: 13,1 %
EBITDA: 1 263 millions d'euros
EBITDA margin: 23,4 %
Net income: 698,2 millions d'euros
5 755 millions d'euros
Guidance from the release
Legrand enregistre un semestre solide avec à nouveau une croissance record de ses ventes de +17% hors change et toujours une excellente rentabilité ; Objectifs annuels 2026 relevés
Risks mentioned
Situation géopolitique et économique qualifiée de « très évolutive » par la direction
Effets de change négatifs, la croissance publiée étant inférieure à la croissance hors change
Dépendance croissante à la dynamique du marché des centres de données
Opportunities identified
Croissance record de +17 % hors change tirée par les centres de données
Sept acquisitions créatrices de valeur dans la transition énergétique et numérique
Nombreux lancements de produits nouveaux dans le cadre du plan stratégique
Outlook / guidance
Expected revenue: 11 140 millions d'euros
Management commentary: sales growth (excluding currency effects) of between +16% and +19% (vs. +10% and +15% previously), comprising organic growth of between +8% and +10% (vs. +4% and +7% previously), and growth through acquisitions of around +8% (vs. between +6% and +8% previously); ■ adjusted operating margin (after acquisitions) of between 20.5% and 21.0% of sales (unchanged)
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.