- Legrand’s adjusted operating profit for the first half of the year reached €1.00 billion, marking a 15% increase compared to the previous year and aligning with market estimates.
- The company’s adjusted operating margin improved to 21%, slightly above last year’s 20.7% and in line with the projected 21%.
- Net income rose by 8.7% year-over-year to €628.1 million, although it fell short of the estimated €646 million.
- Free cash flow was reported at €501.6 million, representing a 7.2% increase from the previous year, but below the consensus estimate of €639.6 million.
- Legrand expresses confidence in achieving the upper limit of its revenue target for 2030, aiming for approximately €15 billion.
- The company forecasts sales growth of 10% to 12% in 2025, excluding the impact of exchange rates.
- For 2025, Legrand anticipates an adjusted operating margin of 20.5% to 21.0% after accounting for acquisitions.
Legrand SA on Smartkarma
Analysts on Smartkarma, like Baptista Research, have been providing valuable insights on Legrand SA, a French multinational focusing on electrical and digital building infrastructure. In a recent research report titled “Legrand S.A.: Initiation of Coverage- How Are They Executing Geographical Diversification To Seize Growth Opportunities!“, Baptista Research shared a bullish sentiment. The report highlighted Legrand’s strong performance in 2024, meeting its financial targets with a 3.9% sales growth driven by organic expansion and strategic acquisitions. Despite challenges like currency fluctuations and reduced contributions from Russia, Legrand’s data center segment and M&A activities were significant contributors to its success.
A look at Legrand SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Legrand S.A., a company specializing in electrical installations and information networks for various sectors, has received positive Smartkarma Smart Scores indicating a promising long-term outlook. With solid scores in Growth, Resilience, and Momentum, Legrand SA appears well-positioned for future success in the market. Its strong Growth score reflects the company’s potential for expanding its operations and increasing its market share over time. Additionally, the high Resilience and Momentum scores suggest that Legrand SA has the ability to withstand economic challenges and maintain steady progress in its performance.
While Legrand SA received lower scores in Value and Dividend, the overall outlook remains optimistic based on its strengths in Growth, Resilience, and Momentum. Investors may find value in considering Legrand SA as a potential long-term investment option given its favorable prospects in key areas essential for sustained growth and competitiveness in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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