Legrand raises its 2026 organic growth target to 11-13% after nine months at +19.5%
Legrand published revenue of €8,329.4 million for the first nine months of 2026 on November 5, 2026, up 19.5%. The group raised its organic growth target for 2026, now between 11% and 13%, compared with 8% to 10% previously.
This upgrade is based on an acceleration during the year: organic growth reached 18.8% in the third quarter alone, compared with 12.7% over nine months. The adjusted operating margin target, however, remains unchanged, between 20.5% and 21.0% of sales.
Over the period, this margin rose by 0.1 point to 20.8%. The announcement came the day after a session in which the stock fell 3.5%, ranking last in the CAC 40.
Organic growth accelerates to 18.8% in the third quarter
Excluding currency effects, sales rose 22% over nine months. This increase combines organic growth of 12.7% and a scope effect of 8.3%, while currency movements subtracted 2.1%.
The third-quarter acceleration concerns the group's three main regions. In North and Central America, organic growth went from 26.6% over nine months to 31.7% in the third quarter alone; in the Rest of the World, it went from 8.4% to 19.6%.
Europe, down 0.9% over nine months, thus posted a 2.4% increase in the third quarter. External growth continued in parallel: Legrand announced seven acquisitions since the beginning of the year, representing a combined annual revenue of approximately €450 million.
All of them are related to data centers, energy transition or digital lifestyles. The group estimates the scope effect at about 8% for the full year.
The United States drives growth, Europe declines over nine months
North and Central America, which accounts for 47.3% of revenue, concentrates most of the momentum. In the United States alone (44.7% of sales), revenue rose 28.7% over nine months and 32.7% in the third quarter.
This growth is driven by offerings for data centers and the energy transition. Benoît Coquart, Chief Executive Officer, reported organic growth in data center activities of 'nearly +40%' over the period.
Europe (33.1% of sales) operates in a building market that the group describes as 'still mixed'. Increases recorded in Italy, the United Kingdom and Turkey do not offset the declines seen in most other countries.
In Asia-Pacific (13.0% of sales), growth reached 10.6% over nine months and 25.2% in the third quarter, with gains in India and Australia, while China remained weak.
Stable adjusted margin, free cash flow up 15.9%
Adjusted operating income rose 20.0% to €1,732.0 million. On a 2025 scope basis, the adjusted operating margin would reach 20.9%: the acquired companies therefore subtract 0.1 point. On an accounting basis, operating income increased 19.7% to €1,595.0 million, and its margin remained stable at 19.1%.
Net income attributable to the Group rose 19.6% to €1,067.0 million, representing 12.8% of sales, the same as a year earlier. This change reflects higher operating income, a tax rate of 27.5% and an unfavorable change in financial income.
Free cash flow increased 15.9% to €1,009.5 million, more slowly than net income. Relative to sales, it fell 0.4 point to 12.1%, while working capital requirements rose from €1,067.0 million to €1,367.6 million.
Net financial debt stood at €5,373.2 million as of September 30, up 72.1% over one year. For 2030, the group targets an average adjusted operating margin of 21% to 22% and free cash flow of 13% to 15% of revenue, above the levels recorded in the first nine months.
