Legrand raises 2026 sales growth guidance on data centre demand

By Mathias de Rozario and Aleksandra Kret

July 29 (Reuters) - French electrical and digital building infrastructure group Legrand raised its 2026 sales growth guidance on Wednesday after strong demand from data centres helped drive first-half revenue above market expectations.

The company now expects sales growth of 16% to 19%, excluding currency effects, up from a previous forecast of 10% to 15%.

Shares in Legrand rose 2% in early Paris trading.

First-half sales reached 5.4 billion euros ($6.16 billion), exceeding the 5.3 billion euros expected by analysts on average in a company-provided consensus.

The United States, which accounted for 44.4% of group revenue, remained the main driver of growth as investment in data-centre infrastructure continued to support demand.

"Data centres account for almost half of our annual U.S. turnover, so we have a strong presence there, and that is one of the reasons why, over the half-year, North America has seen much stronger growth than the rest of the world," Chief Executive Benoit Coquart told journalists.

Legrand posted adjusted operating profit of 1.12 billion euros ($1.28 billion) in the first half, broadly in line with analysts' expectations.

The company said only around 30% of its data-centre sales are generated outside the United States, leaving many of its European operations more dependent on construction-market trends.

"At the moment, there are no real signs of a recovery in the construction market, either in Europe or in the United States," Coquart said.

J.P. Morgan said growth in Europe remained uneven, with strength in Italy and Turkey failing to offset declines in most other markets in the region.

Coquart said rising raw-material and component costs remained a risk, though Legrand has not seen a direct impact from the conflict in the Middle East.

The company was also hit by a 3.7% adverse foreign-exchange effect, mainly due to movements in the U.S. dollar and the Indian rupee during the first quarter.

($1 = 0.8770 euros)

(Reporting by Mathias de Rozario and Aleksandra Kret in Gdansk; Editing by Matt Scuffham)