Legrand "Q2'26 preview: Expect solid underlying quarter; acquisitions..."

Research evidence excerpt

Legrand "Q2'26 preview: Expect solid underlying quarter; acquisitions..."

Global Research

29 June 2026ab

Legrand Equities

FranceQ2'26 preview: Expect solid underlying quarter;

acquisitions consolidation timing to watch Electric Components & Equipment

12-month rating Neutral

12m price target €160.00Bottom line

Based on our channel checks, datapoints and conversations with corporates, we set our

expectations for 6.3% Q2 organic sales growth and 21.9% Adj EBITA margin. Our Price (29 Jun 2026) €144.45

estimates are broadly inline with consensus on organic growth and Adj EBITA margin RIC: LEGD.PA BBG: LR FP

basis but we landed c4% below current consensus at the absolute Adj EBITA level

because of a delta in acquired growth. While the deals announced so far point to c7% Trading data and key metrics

acquired growth, the company points to somewhat slower consolidation in this given 52-wk range €160.10-111.05

quarter and hence only c2% acquired growth. We note that consensus is currently for Market cap. €38.4b/US$43.8b

c+7% but we view this as rather mechanical (and deals consolidation will likely catch up Shares o/s 266m (ORD)

later in the year) and therefore not price sensitive. For full-year 2026, we raise our Adj Free float 100%

EBITA estimate by c2% as we expect full consolidation of the newly announced deals for Avg. daily volume ('000) 579

the year slightly tweak up the Americas margin assumption. This lands us about 2% Avg. daily value (m) €85.1

ahead of consensus and we therefore expect a similar degree of revisions despite a likely Common s/h equity (12/26E) €8.04b

lower Q2. Maintain Neutral. P/BV (12/26E) 4.7x

Net debt to EBITDA (12/26E) 2.0x

Key points for Q2'26

800V DC architecture: Legrand believes the market is oversimplifying the subject EPS (UBS, diluted) (EUR)