Legrand Shares Rise After Data-Center Boom Prompts Guidance Upgrade
By Adria Calatayud
Legrand shares climbed after the French supplier of electrical equipment raised its 2030 targets as it laid out plans to capitalize on the rapid data-center buildout driven by artificial intelligence.
Shares in Legrand were up 6.2% in European morning trading Tuesday, lifting their year-to-date gain to 12%.
Ahead of an event with investors, the company said it expects annual organic sales growth of 6% to 8% over the 2027 to 2030 period. In its previous midterm update in 2024, Legrand had guided for annual organic sales growth of 3% to 5% through 2030.
Acquisitions are expected to boost revenue by 5% on average, while the group also plans to offload business representing sales of between 500 million and 1 billion euros ($568.6 million-$1.14 billion).
The company said it is targeting an adjusted operating margin of 21% to 22% on average, ahead of its prior goal of around 20%.
Legrand said the energy and digital transition, driven by the rapid expansion of AI data centers and electrification, prompted it to upgrade its 2030 sales and profitability ambitions.
Like several other industrial groups, Legrand is riding a wave of demand triggered by a global race to build data centers to power the computing needs of AI labs.
The company expects to generate more than 3 billion euros in sales from the data-center market this year, and said that it is positioning itself to enable the next generation of AI data centers.
Legrand said it would deploy 60% of its free cash flow on acquisitions on average, and that it would carry out selective stock buybacks in addition to its dividends.
The new targets are better than expected and this is coupled with higher ambitions for acquisitions and an explicit divestment program, which point to Legrand taking a more active approach to reshaping its portfolio, analysts at Jefferies wrote in a note to clients.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
September 29, 2026 04:08 ET (08:08 GMT)
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