Feb 13 (Reuters) - French industrial group Legrand
guided on Thursday for full-year 2025 organic sales growth of 6%
to 10%, prompting its shares to rise to a 5-year high, as it
reported full-year sales last year above market expectations.
Shares were up almost 8% at 0818 GMT, outperforming France's
blue chip index CAC 40. RBC Capital Market analysts said
the group posted "positive results", with a 2025 "supportive
guidance".
"This performance is mainly due to the strong success of
our data center offerings, as well as the sustained pace of
acquisitions during the year," CEO Benoît Coquart said in a call
with journalists.
He called the group's further growth remarkable taking
into account a depressed building market.
The European construction market remains sluggish, hit
by high interest rates and weak commercial real estate demand.
However, investments in energy-efficient buildings and data
centers provide a cushion.
Legrand, which sells products such as electrical
junctions and EV chargers to commercial, industrial, and
residential customers, reported full-year sales of 8.65 billion
euros ($8.99 billion), topping a company-provided consensus of
8.54 billion euros. Annual sales in the data centre segment
stood at of 1.6 billion euros.
In the U.S., which accounts for 37% of group revenue, sales
increased 5.7% year-on-year.
However, in Europe, which represents 40% of the group's
revenue, full-year sales fell 2.3%, hit by a weak construction
market.
The group posted full-year adjusted operating profit of 1.78
billion euros, beating the company-compiled consensus of 1.73
billion euros.
Asked about AI startup DeepSeek, the Chinese low-cost
alternative to U.S. rivals, Coquart told Reuters the growing
adoption of open-source AI models would drive greater artificial
intelligence penetration, fueling demand for data centers.
However, Legrand did not raise its guidance on the back of
this trend, with the CEO saying DeepSeek and other open-source
models remain fully in line with Legrand's outlook.
($1 = 0.9626 euros)