Legrand (LR) CMD 2026 summary

Strategic roadmap and focus areas

• Exceeded 2024 growth and profitability commitments, now targeting 2030 with a focus on data centers (32% of sales), energy transition (22%), and essential building infrastructures (46%).

• Roadmap leverages digitalization, AI-driven data centers, electrification, and building needs, supported by innovation, customer experience, pricing, and disciplined acquisitions.

Data center strategy and technology

• Data center sales projected to surpass €3 billion in 2026, driven by organic growth, acquisitions, and a comprehensive offering across critical power, infrastructure, monitoring, cooling, and lifecycle services.

• Emphasis on open architecture, integration, and global delivery to address evolving needs such as AI workloads, higher rack densities, and new power architectures.

• Unveiled vision for Low Voltage Direct Current (LVDC) architectures and a roadmap for next-generation AI data centers at gigawatt scale.

• Regional growth highlighted by a Malaysia business case, combining local manufacturing, engineering, and recent acquisitions.

Upgraded 2030 financial ambitions

• Organic sales CAGR of +6% to +8% for 2027-2030, with acquisitions adding ~5% annually and divestments of €0.5–1.0 billion.

• Adjusted operating margin targeted at 21–22% of sales, including restructuring and acquisitions.

• Free cash flow expected at 13–15% of sales, with cash conversion above 100% on average.

• Capital allocation: ~60% of free cash flow to acquisitions, 50% net income payout as dividends, selective buybacks, and leverage ratio of 1.5x–2.5x net debt/EBITDA.