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Investing.com -- Legrand (EPA:LEGD) reported better-than-expected first-quarter sales on Wednesday, supported by strong momentum in its U.S. data centre (DC) segment.
The company’s shares rose 1.7% in Paris as of 08:34 GMT.
The French company, known for its electrical and digital infrastructure solutions ranging from junction boxes to EV chargers, posted revenue of 2.28 billion euros ($2.58 billion) for the quarter. That topped the 2.24 billion euro consensus from a company-provided analyst survey.
Adjusted EBIT came in at 470 million euros, also ahead of the 456 million euro average forecast.
While the European construction market remained under pressure from high interest rates and subdued commercial real estate activity, Legrand saw growth driven by its data centre offerings. "The 7.6% organic (sales) growth is coming entirely from data centre," CEO Benoît Coquart told Reuters.
Coquart added that annual sales from the data centre segment are expected to represent between 20% and 25% of group revenue.
In North and Central America (NCA)—Legrand’s largest region, accounting for 40.8% of total sales—revenue climbed 18.7%. U.S. sales, which make up 37.7% of the total, rose 20.2%, fueled by data centre demand.
Europe, which contributes 40.9% of overall revenue, posted a slight 0.3% decline, reflecting a soft construction environment across the region.
The company reaffirmed its full-year guidance and said it was implementing targeted price increases, cost efficiency measures, and supply chain changes in response to evolving U.S. trade policy.
RBC Capital Markets analysts said they feel "slightly positive overall" after Legrand’s print.
"Results beat operationally, driven by strong organic growth, though we wonder whether the NCA result was impacted in any way by pre-buying," analysts led by Nick Housden added. "We are encouraged to see strong DC momentum continuing."
Separately, Morgan Stanley (NYSE:MS) analysts said the print marks a "reassuring start on growth," driven by NCA strength. Further price tailwinds in North America are "still to come," they added.