The tone has been set. The group has raised its annual growth target range to 10%-12%, up from 6%-10% previously. In Q1, companies remained cautious, held back by concerns about customs duties. Today, the situation has stabilized and the trajectory is confirmed.
A driving force: data centers
Data centers are the main growth driver. While the construction market remains "depressed," to use the words of CEO Benoît Coquart in the 2024 publication, data centers are more than compensating for this. Total sales rose 15% in H1, after already growing 12.3% in Q1.
America, the leading market
Amongst catalysts is the American continent. Over H1, growth there was twenty times higher than in Europe, at 20.5% compared with just 1%. For the first time, America will become Legrand's largest market, ahead of Europe.
This momentum is reflected in ABB, which reported record quarterly orders on the same day, also driven by data centers and the Americas. Schneider, which will announce its results on July 31, is also benefiting from the environment and its share price is up.
Organic growth and acquisitions
Of the 10%-12% growth targeted for this year, 5%-7% will come from organic growth. The rest will be based on the acquisition strategy, which is central to Legrand's model. After nine acquisitions in 2024, the group has already completed five in H1 this year, representing €100m in cumulative revenue in 2024.
These are promising announcements as the listed electrical equipment manufacturers' results approach. Data center activities and new integrations should continue to drive growth at Legrand. In 2024, they already accounted for 20% of revenue. This figure is set to rise.
