Thank you. Good morning everybody.

Franck Lemery, Ronan Marc, and myself are happy to welcome you to the Legrand 2025 full-year results conference call and webcast. As this call is recorded.

We have published today our press release, financial statements, and a slideshow to which we will refer. I begin on page 4 with the three key highlights of this release.

First, Legrand delivered a remarkable performance, with record sales growth, high profitability, and a strong achievement of its CSR objectives. Second, the group continued the successful deployment of its strategic roadmap towards €15 billion of sales by 2030.

Third, Legrand is targeting further sales growth of between +10% and +15% in 2026, excluding currency effects. Starting on page 6 of the deck, we fully achieved our annual targets for 2025, which we will detail further by key topic during this presentation.

Moving to page 7, I will start with an overview of sales. In 2025, excluding currency effects, our sales grew by +13.1%.

This includes an organic growth of +7.7%. This growth is driven by an outstanding performance in datacenters, with an organic growth of close to +40% this year.

Regarding our sales in buildings, we are resisting very well despite a still muted market over the year. On top of organic growth, we benefit from a positive scope effect of +5.1%.

I will come back later on acquisitions. Of course, now, based on the acquisitions announced and the likely date of consolidation, the 2026 full-year scope impact would be close to +6%.

As for FX exchange rates, the effect was a negative -3.1% in 2025, and based on the rates of the month of Jan, it would be around -2.5% for the full year 2026. On page 8, you will find the key takeaways per geography on a like-for-like basis.

In Europe, in a market that remains mixed overall, sales were up +1.9% over the year, including, for example, in Germany, Italy, the Netherlands, and the UK. In North and Central America, sales were up a strong +16%, driven by an outstanding performance in datacenters.

Finally, in the rest of the world, sales increased by +2.7%, with good growth in Asia-Pacific, Africa, and the Middle East, partly offset by a retreat in South America. These were the main comments I wanted to share on sales.

I will now hand over to Franck for more color on our financial performance.

Thank you, Benoît. Good morning to all of you.

I will start on page 9 with adjusted operating margin. We recorded in 2025 a very solid adjusted operating margin of 20.7% of sales after acquisitions.

This represents a +20 basis point increase year-on-year, including a 10 basis point organic improvement and a +10 basis point favorable impact from acquisitions. The group's high profitability demonstrates once again the strength of our strategic model and our solidity, capacity to execute, and adapt.

I think notably of the volatile environment linked to the US custom policies, which increased the group cost base by around $100 million. Going now to page 10, the net profit attributable to the group stood at €1.2 billion, representing 13.1% of our sales.

The increase coming from the operating profit is partially offset by the impact of financial results, while the corporate income tax rate remains stable. The free cash flow came to a solid €1.3 billion at 14% of sales and a conversion rate of 107%, supporting the sustained acquisition momentum of Legrand while preserving balance sheet strength, with financial leverage kept under control at 1.9 at December, at the end of December 2025.

This is it with the key financial topics I wanted to share with you this morning. I now handing over back to Benoît.

Thank you, Franck. Let me now move to our 2025 CSR performance.

On page 11, in 2025, Legrand reached an achievement rate of 110% of the targets set for the first year of its 2025-2027 CSR roadmap. You will find on page 12 a few illustrative examples highlighting this performance.

For example, Legrand outperformed its targets in terms of Scope 1 and 2 CO2 emission reduction, plastic packaging reduction, or use of sustainable materials. All the achievements confirm the strong integration of sustainability into the group's strategy.

I'm now moving to page 13 to conclude on 2025 performance with our dividend. The approval of the payment of a dividend of €2.38 per share will be proposed to the next general meeting of shareholders.

This represents a rise of +8.2% from 2024 and a payout ratio of 50%. Let's now move to the second key topic of this release, our strategic roadmap.

In 2025, Legrand actively deployed its strategic roadmap towards €15 billion of sales by 2030, combining accelerated growth and value creation. As shown on page 15, this is first illustrated by the reinforced positioning of the group in energy and digital transition offerings, which now represent 53% of our sales, compared with 47% for essential infrastructure solutions.

Datacenters, at the heart of the group's growth strategy, represented sales of €2.4 billion at year-end 2025, i.e., 26% of group sales, to compare with €0.7 billion in 2020. Legrand is recognized as an undisputed major player in this field of activity, with a deep offering that is perfectly suited to the deployment of infrastructure for artificial intelligence.

Building on nearly 30 acquisitions completed in this field, Legrand has become a leading player and a preferred partner for major industry participants. The side positive impact of all the acquisitions we made in datacenters is that they also strengthened the group's existing position in critical power with other verticals driven by electrification, such as infrastructures, industry, telecom, oil and gas, and microgrids.

I am now moving to page 16 to 18. As innovation is really the DNA of Legrand.

We highlight on those slides a number of product launches carried out in 2025, which illustrates the sustained momentum in innovation across the group's segments and geographies. On page 19, we underline the group's continued focus on digital initiatives and customer experience, with high and improving customer satisfaction in 2025.

Finally, on page 20, we detail Legrand's particularly active M&A strategy, with seven acquisitions announced in 2025, representing €500 million of annualized sales, all in the fields of energy and digital transition. This momentum extends into 2026, as shown on page 21, with the announcement today of two additional acquisitions in datacenters: in the US with Kratos Industries, and in Brazil with Rinfort.

Maybe one thing to add that is not in the slide, actually, but in the press release: we recently invested in Accelsius in the US, a pioneer in two-phase direct-to-chip liquid cooling. This investment will further strengthen the group's portfolio of solutions for AI and HPC datacenters.

Let's now move quickly to the third part of this release, with our targets. On page 23, regarding '26, Legrand will continue to accelerate its profitable and responsible growth momentum, in line with its strategic roadmap.

Taking into account the current global macroeconomic outlook, the very strong datacenter market, and a modest recovery in the building sector, Legrand is targeting the following in 2026: sales growth excluding currency effects of between +10% and +15%, comprising organic growth of between +4% and +7% and growth through acquisitions of between +6% and +8%; adjusted operating margin after acquisitions of 20.5% to 21.0% of sales; a CSR achievement rate of at least 100% for the second year of its 2025-2027 roadmap. On page 24, regarding our 2030 ambitions, building on its achievements and taking into account both observed and expected market trends, Legrand is confident in its ability to reach the upper end of its 2030 sales target range, around €15 billion, with average annual sales growth of close to 10% excluding exchange rate effects, and average adjusted operating margin above 20% of sales, compared with a previously targeted level of around 20% in average.

This is it for the key topics of this release. Last word before we move to the Q&A session: you will find on page 26 to 28 our corporate access agenda for 2026, should you wish to meet Legrand management.

Let's now switch to Q&A.

Hi. Good morning.

Thank you so much for taking my question and the follow-up. I will do them one at a time.

Starting on the guidance for 2026, can you give us some help on the building blocks, particularly how much datacenter growth are you factoring in, and how much of that comes from a backlog you already have, and what pricing are you factoring in there?

Hello, Daniela. Our organic guidance, the 4% to 7% growth, is basically built this way: a growth in datacenter of between +10% and +20%, and for the rest of the activity, i.e., the building activity, something basically more or less flat in volume with a bit of pricing.

Those are the building blocks. How confident are we on the fact that we're going to grow from +10% to +20% in datacenter?

I have to say that we are very confident. Not much based on the orders, the lesson of last year is that it's difficult to anticipate what we're going to do based on the orders in hands.

Last year in Feb, based on the orders we had in hand, we targeted +10% to +20%, and at the end of the year, we did +40% or close to +40%. It's a bit difficult to do that, we have to rely not only on orders, which are very good, not only on the book-to-bill, which is above 1, but we also have to rely on the feedback we get from the market, on the capex plans announced by the hyperscalers, and so on and so forth.

Based on those information, we are very confident in our ability to do something between +10% and +20%.

As far as pricing is concerned, overall, not specifically on datacenter nor specifically on building, we are shooting for a pricing somewhere between +1% and +2%. Now, it is based on our scenario when it comes to the raw mats and components.

We believe that the price of raw mats and components would be up between +1% and +2% this year. Of course, it can change.

If for whatever reason, the price of raw mats and components was to be higher than expected, of course, we would do a bit more pricing. Based on the scenario we have in hands today, we believe that a +1% to +2% price should be enough.

Thank you very much. Then just following up just a bit on the acquisitions and the investments that you have been doing.

I think one of the deals today has more of a power distribution medium-voltage component, which I believe you hadn't done too much in the past. Then the Accelsius was into liquid cooling, although I guess it's just an investment rather than a full consolidation.

Can you talk us through sort of how you pivoting the portfolio in datacenters? Do you want to go into medium voltage?

How far out are you in the grey space right now, just to get a bit of a shift on the mix?

Thank you for asking the question, Daniela, because I sometimes feel that we haven't done a job good enough in explaining how deep our portfolio in datacenter was. A few numbers.

For example, we are already a bit in medium voltage. We've been selling for quite some time medium-voltage/low-voltage transformers, cast resin transformers to datacenters and to a number of other spaces.

Maybe let me give you a few numbers. The split between white space and grey space would be something like, in 2025, 75% white space, 25% grey space.

You could note that grey space was 5% 3 years back, and it's now 25%. We've been able to rebalance, if I may say, our portfolio as we committed to do at the last CMD.

Now, this split between grey and white doesn't give full justice to the breadth of portfolio we've been able to build, which is composed of close to 55,000 SKUs for datacenters, standard SKUs, and if we put together the customized SKUs, close to 100,000 SKUs. Maybe a best way to look at it is to break down it by type of applications.

In 2025, we had about 35% of our datacenter sales which was for critical power. Critical power, it's medium-voltage, low-voltage transformers.

It's UPS, switchgear, busbar, busway, remote power panels, and a few other products, 35% critical power. 50% of our sales relate to compute infrastructure, with approximately half of that would typically be physical infrastructure, racks, tap-off box, feeders, cable management, stuff like that, and half of that would be typically compute management.

It's about monitoring, PDU, rack PDUs, KVM, consoles, transceivers, and a few other products. So 35%, 50%.

We have 5% of advanced cooling, which is rear door, heat exchangers, containment, and now we have the ability to be more active on two-phase direct-to-chip. Then we have 10% which is testing and lifecycle services.

That's where we have the power banks, Aftron power banks, but we also have installation, commissioning, monitoring, field services, and so on and so forth. You see, we really have a complete set of products.

Yes, we are a bit into medium-voltage switchgear. We are already a bit into medium-voltage transformers, but it goes down to rack components and even field services.

I believe today we have probably one of the most comprehensive range in the datacenter industry, and it is set to continue. We have a lot of ideas both organically and inorganically to continue to build a strong catalogue.

Got it. That was super helpful.

Thank you very much for providing the split.

Good morning. Morning, everyone.

Maybe I'll start with a follow-up, because the color you just gave there was super interesting. In the context maybe of the way the business will evolve to the 800V DC architecture, and perhaps you could give a little bit of color on what that means for you and how you're going to address this new technology in the future?

Thank you very much for asking this question, because I sometimes feel that the analyst community is a bit lost with these new architectures, and it's the opportunity to maybe be a bit clear. What is basically 800V architecture?

You have a concept which is a sort of grid-to-chip concept, which we call in the industry the Holy Grail, which is still on the drawing board and won't be at scale before, I don't know, 2030, 2031, 2032. What is currently almost ready, if I may say, is a 800V DC architecture, but slightly different than this grid-to-chip.

It is based on what we call a sidecar. How does it work?

Basically, you have power train with AC components that feed a power sidecar, which is located in a white space. This power sidecar converts from AC to DC, then feed a number of racks, and that's where you have the compute components, the cooling, and so on and so forth.

Three characteristics: increased power density up to 500 or 600 kW per rack, use of DC components in addition to AC in the electrical power train, and a sort of decoupling of power and energy storage from the IT rack, and those components are moved into a sidecar serving one or several racks. This is the architecture which is almost ready and possibly at scale in a few years.

How would this architecture impact Legrand? We have made a number of analyses, and we think that it will have a neutral to negative impact on about 20% of Legrand sales, and a neutral to positive impact on 80% of Legrand sales.

The negative impact typically could be on rack PDUs, for example. It could be on UPS because UPS is replaced by a sort of battery storage within the sidecar.

It could be on a few other components. The positive impact, well, it's on the AC power train because you will need more power, more amperage.

It could be on the physical compute infrastructure because you'll have wider racks. It will be on cooling, of course, and especially it will push two-phase direct-to-chip cooling.

You will have rear door cooling for residual cooling, including actually in the sidecar. It will be good for commissioning and for Aftron products because not only you will need to commission the electrical infrastructure, but on top of that, you need to commission heat rejection units, CDUs, and so on and so forth.

To summarize the impact it could have on Legrand, it could imply for us the theoretical accessible market, let's say, would be between $3 million and $4 million per megawatt. Now, this being said, I wouldn't like you to get too excited by the opportunity because it won't be at scale before 20, it won't hit our P&L before, let's say, '28 or '29.

More importantly, this is one amongst many architectures. You have to understand that we are in a world where you have tens and tens of different architectures.

What is important is not for a company like Legrand is to be architecture agnostic. In other words, to have the ability to work with all the hyperscalers, all the every single colocators, so that our product launches stick to the architecture they're going to launch, rather than betting that the winning architecture will be X or Y.

I have the feeling that we have the right relationship with all of those guys. We are working with the Meta, the Google, the Oracle, the Microsoft, the xAI of the world, and the Vantage, and the Equinix, and so on and so forth.

In a nutshell, it should have quite a positive impact on Legrand, but not for now, within two or three years, and again, it will be one amongst many different architectures. Sorry, I've been a bit long, but I thought it was worth taking some time because those topics are complex topics, and we need to bring as much clarity as we can to the market.

That's very helpful. Thank you.

Maybe just another question on your guidance for data center growth this year. Previously you've sort of benchmarked yourself to Vertiv, and their growth is quite a bit above what you're saying yours will be this year.

Perhaps could you explain what the difference would be this year for you?

I hope they are right! To make long story short, no, but well, this year we grew close to 40%, which is significantly higher than their growth, right?

Because if my reading was correct, they grew 26%. We did a fantastic performance, and actually this plus close to +40% is probably significantly above the market growth.

If the market is not growing 10, 12, 14% this year in 2026, but much more than that, then fine! Our objective, as we did last year, is to outperform the market.

If the market is going 20% instead of growing 10%, all good for Legrand. There's no structural reason why Vertiv should grow faster than Legrand.

In '26, we grew 40 against 26, and if you look at the past two years, the performance is also significant. Again, we are all different animals in this business, comparing one with the other might not be the right way to do.

What I can confirm is that, again, we're going to experience a nice growth in 2026 in datacenters. We have the right product offering.

Should we miss something, we have the ability to develop it organically or to buy it. I think we have developed a great expertise in buying datacenter assets at reasonable prices.

We have the right relationships with the customers. We've been able to scale our business by adding capacity whenever needed.

We are ready to capture any market growth that will come.

Thank you.

Oh, hi. Good morning.

Thank you. Thank you for all of the datacenter disclosure.

Just to try and extract one more data point if I can. You mentioned $3 to $4 million per megawatt in a higher-density architecture, if I heard that correctly.

What is the current megawatt in a current architecture, if you will?

Now it's between 2 and 3, but probably closer to 3 now than to 2, given the latest acquisitions we have made. Between 2 and 3, but closer to 3.

Perfect. Thank you.

Then on the guidance, understood that we are expecting flat volume in buildings. I think that makes sense as a planning assumption.

Would you see any signs from the ground that there's an improving situation in end markets such as residential in Europe or US office, any kind of on the ground commentary on some of those key markets would be great, please.

You're right to say that the world shouldn't be limited to datacenters. It's worth also having a look at building.

We're a bit more optimistic for Europe than for the US. Typically for the US, we have embedded into our guidance a slightly negative building market overall.

We see no short-term positive signals on resi. It's only 15% of our sales in the US.

As far as non-resi is concerned, we also remain quite cautious, and the statistics tend to show that the market should be slightly down. Overall, building in the US, slightly negative.

Now, bear in mind that in the US, 40% to 45% of our sales is now represented by datacenters. Only slightly more than 50% is represented by building.

As far as Europe is concerned, we have embedded something flat to slightly positive. If you look at the various KPIs, as far as the resi is concerned, well, completions are moving from -9% in 2025 or should move from -9% in 2025 to +2% in '26.

Permits should be slightly up by +4% in 2026. Renovation should be slightly up by +1%.

We start to see positive indicators. Now, of course, we are late cycle, those indicators do not immediately translate into Legrand sales, but those are rather positive signs that the market should get better.

As far as non-resi is concerned, recent updates from experts also suggest some sort of recovery in 2026, with renovation remaining slightly positive and new build also. In other words, slightly negative building business in the US, and flat to slightly positive in Europe.

As far as the rest of the world is concerned, what is, as usual, quite a mixed situation. We don't expect a recovery in China yet on the building side, and Africa, Middle East, and India should remain quite supportive.

That's great. Thank you very much.

There's no pocket of the business that you're concerned about being in a significant contraction territory?

No. It depends what you call significant contraction.

The risk is always a bit China, because China has experienced a -50% decline in the residential business over the past three or four years. Now, China is only 2% of our sales, whatever happens to the resi market in China won't impact much Legrand numbers.

No, I don't see any reason why there would be a contraction somewhere.

That's great. Thanks very much.

Good morning. Thanks very much.

Can I follow up on the 800V DC discussion? I wondered how you're addressing this potential shift from a technological standpoint?

Especially around the potential change from electromechanical circuit breakers to solid-state circuit breakers. Also, still in relation to 800V DC, can you go a bit deeper into the breakdown you provided, especially around the revenue base you have in the rack PDU segment and what the impact could be on this part of the portfolio going forward?

Of course. Gaël, there's a misunderstanding between the 800V DC architecture which is ready for deployment, which is the one with the sidecar, and the sort of full DC, Holy Grail type of architecture, which is not ready for deployment, won't be before 2030, 2031, if it is, and which is a full DC architecture.

We are addressing both by two ways. Number one, by developing products whenever needed.

For example, we are developing OCP type of and we presented one, actually, six months back at a trade show of racks, by working on DC busways and a number of other things. Number two, whenever we feel that we have a gap, then we fulfill the gap by partnering or buying companies.

Good example being the two-phase direct-to-chip liquid cooling investment we made in Accelsius, which is not only financial investments, but which is also a commercial and technological partnership that will give us the ability to sell a very interesting product offering to high-density datacenters. You have to keep in mind that Legrand is the only company in this business which has built from scratch a product offering which is AI ready.

Our competitors were either pure play of datacenters already or had already switchgear and so on and so forth. When we started back in 2017, we were doing sales of €300 million in datacenters, of which a few PDUs and a few racks.

It was 9 years ago. Since then, we have built a product offering almost from scratch by doing 30 acquisitions, by developing organically products, which, again, is very suited to high-density datacenters.

I don't have the best answer to tell you. We're going to keep developing products.

We will keep working hard with the design teams of our customers to make sure that our products are suitable to their needs. We do a lot of ETO, engineering to orders, and whenever needed, we'll partner, we'll invest in partners if needed, or we'll buy companies.

It will make Legrand perfectly in good shape to tackle the challenges of the new architecture that are going to come. Now, as far as PDUs, I cannot be more precise than I was.

I don't want to give you sales by product families. I told you that everything which was related to compute management was about 25% of our sales, and within this 25% of our datacenter sales, you have many things including rack PDUs.

Not only rack PDUs, you have also monitoring devices, you have keyboard, video, mouse, you have transceivers, you have console business that we bought a couple of years back. That's it.

The PDU business is part of the 20% of our sales that should be negatively impacted by indeed 800V architecture. Again, you have many families of products that will be positively impacted, 80% of our sales.

This is our estimate today.

That's great. Thanks very much.

Can I also ask about what happened in Q4? I think the outcome in terms of organic growth was certainly a bit higher than what you had anticipated yourself.

What surprised you on the upside? Was it just datacenter related or are you also already seeing residential demand in Europe ticking higher here relative to the last time we spoke?

Yeah.

It's mostly datacenter, Gaël. Yes, the Q4 is optically better in Europe than the full year, but it also comes from datacenter, actually.

Don't forget that datacenter, it's not only a US business, but it's also Europe and rest of the world. Actually, maybe a data that I can share with you: I told you that we grew in datacenter close to 40%.

This growth is close to 50% in the US. It's about 20-plus in Europe and 20% in the rest of the world.

We are growing significantly everywhere in datacenter, even though the growth is stronger in the US than elsewhere. Now short answer to your question, we did not anticipate so much sales and actually so much orders in datacenter in Q4.

Thank you very much.

Thank you. Good morning.

Just my first question is around your pricing. When you say that's based on your kind of current assumptions, could you give us a feel for kind of what those current assumptions are?

Because obviously it's difficult with kind of copper prices and silver prices. We know they're quite sort of big drivers of direct raw materials.

Could you give us a feel of, are you doing that with kind of $13,000, $14,000 dollars copper in mind? Are you doing that with current steel prices?

Or if we do see raw materials stay at current prices, will that number be quite a bit higher? Thank you.

Hello, Max. It's a fair question because frankly speaking, we are not dependent upon one single raw mat, copper, silver, or something else.

Bear in mind that the vast majority of our purchases are components. Out of the 35% of raw mat and components, it's about 10% raw mats and 25% components.

It's a mix of many many things. We do it with our purchasing team on a very professional manner.

We look at experts, specialists. We embed, of course, productivity into that, and it leads to a central scenario.

Based on this central scenario, we do the appropriate pricing. The game would be to adapt.

The best analogy I can give you is what we did last year for tariff, US tariff. I remember when we did the same call a year ago, we told you that we have embedded only $30 million of tariff into our guidance.

I also told you that should there be more tariffs, we will do more pricing. That's what happened.

At the end of the year, we had $100 million of tariff to compensate for. Actually, the reality is that we had $140 million.

We compensated 40 million by optimizing our supply chain, making sure that more products were eligible to the USMCA agreement and so on, and the remaining $100 million of tariff were compensated through pricing in value. The same story with raw mats and components: we have a central scenario.

We might be wrong. We might be right.

If copper price was to go even up, and then the steel and plastic, oil, components, labor, and so on and so forth, and if we needed to do more pricing in order to deliver our profitability target, we will do more pricing. We've been demonstrating over the years that we have the ability to do so.

Okay. Just maybe a very quick follow-up on your North America growth rate of 7% in the quarter.

I'm really trying, or already struggling to understand that because you're sort of saying that datacenters was better. If I look at your kind of full-year datacenter number for the group, it feels like you did roughly 30% in the fourth quarter for the group, US must have been higher than that.

You're now saying datacenters is sort of 40% of your business in US. I know it wasn't that last year, but your datacenter business should have been growing, that should have been a double-digit contributor to growth.

I'm trying to figure out how we get back to 7.

No, no, actually, in Q4, our datacenter grew by about 10%. The reason So it seems to be slow, but bear in mind that that we had a very, very strong Q4 2024.

As early as July '25, we told you that in H2, you would have an optical deceleration, but which was not a deceleration, which was purely coming from the the basis for comparison. This is the the the point.

About +10% in Q4 on a +30% last year, I mean the year before, and full year close to +40%.

Then is your 40% datacenter growth this year, is that an organic number, or is that a

Close to 40% close to 40% is for the full year is an organic number.

With 10 in the fourth quarter.

Again, the basis for comparison makes makes the number a bit tricky because we had a very, very easy Q1 comp because of the great pause which happened back in Q1 2024, and we had a very, very demanding Q4 Q4. Now, be careful, don't extrapolate one way or the other.

There's no exit There's no such concept as an exit rate in datacenter, right? Don't extrapolate a good Q4 or or or a slow Q4 into into 2026.

I can confirm that the performance was was great in the US and elsewhere in Q4, that we have a lot of orders that are sustaining our guidance for for 2026, and that we should see very exciting growth in datacenters this year.

Okay. That'll make sense.

Thank you very much.

Hello, yeah. Good morning, everyone.

I also wanted to follow up a little bit on the data center side. We have been discussing about the 800V system, but I wanted to actually dig a little bit into the PUE side of things.

I know the demand for standard offerings is high, but are you also seeing a traction for your PUE offerings because we know that Europe is already short on power to power all the data centers? Then is there a dedicated part of the portfolio that is dedicated to these

high-efficiency

offerings, and is there something that you can add through acquisitions also? Thank you.

It's a good question. Indeed, we estimate that we have approximately 40% of our datacenter sales which help or can be used to reduce the energy bill of a datacenter.

It's not only about compute monitoring. It's also, of course, about efficiency within the power train and amongst another number of components.

Today the I think the average PUE on a worldwide basis is probably something like 1.5. We know that theoretically it can go down.

The best PUE ever, I think, was recorded was 1.025, if I'm correct. We have a lot of opportunities to help our customers cutting their PUE from 1.5, 1.6 down to 1.4, 1.3, 1.2, if needed.

It is clearly a very important driver behind our datacenter business, and it should continue to be. Now, this being said, it is a fact that you have geographies where access to grid is a constraint.

There are some countries where it can take up to 2, 3, 4 years for a datacenter to get connected to the grid. That's why you have to take with a certain cautiousness the numbers, the capex numbers, which are disclosed by our customers, because some of those capex will not be spent in 2026 or not even in 2027 just because they will need to get the access to the grid.

To make a long story short, I confirm that it is an industry challenge to get the energy. It may translate into some datacenters being open rather in '28 than in '26, but we are part of the solution, not of the problem, because a large part of our product portfolio help cutting down the PUE.

Right. Thank you for that.

Just to follow up a little bit on this: so is there a specific treatment that you get in terms of pricing with the portfolio and also if it helps the profitability? I know that most of the products are centered around the group profitability, but I just wanted to understand if there is a specific advantage that you can get from these particular set of products.

No, I'm not aware of any significant pricing approach between datacenter and building. Of course, our products in datacenter are mission critical.

They are extremely important for our customers to deliver their performance, not only in terms of PUE, but also in terms of reliability, compute performance, and so on and so forth. At the same time, they are big customers.

They are negotiating tough on price, and they want to make sure that they have good value for money. We are not taking advantage of product shortage or the criticality of our products to do additional pricing.

We are doing the same pricing we are doing elsewhere.

Thank you so much.

Yes, hi. Good morning.

My first question, on the construction cycle, you mentioned that Legrand is more a late cycle and it's certainly very true for the new build, but is it really the case for renovation? Because I suspect that if I need to renovate my house, I would probably start with some electrical equipments.

You're right, Eric. Indeed, for new, you have to, while it depends on the building, but it could be 6, 12, or 18 months lag between the time a permit is issued and the time we sell our products.

For renovation, the cycle's a lot shorter, even though it depends on the type of renovation. If it is renovating one room, it's almost immediate.

If it is renovating a full house, then it takes a few months. Now, this being said, the renovation numbers for Europe in 2026 are not very bullish, according to I think it's Euroconstruct.

They plan for the residential renovation to be up 1%. It's a very light increase, let's say.

Again, we can have good surprises. We'll see, but so far, nobody expect the renovation market in Europe to rebound sharply.

That's not what we have embedded in our guidance. We have embedded, as I said, flat to slightly positive building market in Europe.

Thanks for that. A follow-up on datacenter, you mentioned this close to 40% growth for the full year in 2025 and 10% for Q4.

Could you remind us Q1, Q2, Q3, how was it, the growth, on an organic basis for datacenters for Legrand?

We said that it was well above 30% in Q1, well above 30% in H1, I'll let you, Eric, do your own computation, above 30% in 9 months, and 10% in Q4, and that everything was coming from the basis for comparison, and that we have kept building a very nice order book over the year, and again, we have a very strong backlog and order book the end of 2025, which give us full confidence on our ability to deliver our datacenter targets for 2026.

It was probably

Maybe just a word because I want to make sure to avoid a misunderstanding, the close to +40% is really organic. If we were to put together FX and acquisitions, this close to +40% would become +50%.

The close to +40% is really purely like-for-like sales increase in datacenters in 2025.

Okay. The well above 30% you mentioned for the 9 months, it was actually well above 40%, I suspect.

40% is above 30%.

Fine. Just if I may, a last one on margin, your guidance on margin, do you include in your margin guidance for 2026 some positive impact from acquisition, or negative impact from acquisition?

Actually, first comment: when looking at our guidance, we start from a high base, which is a 2025 margin, and we basically include a bit of leverage, an organic leverage, not a lot, I have to admit, but I have to say that we have given the clear priority to growth in 2026, and to sustain growth, while you have inefficiencies, you have amortization, you have expenses to do, a bit of leverage and a few 10 bps of dilution coming from acquisitions. Could be -10, it could be -20.

Those are the order of magnitude. All that leads to the 20.5% to 21.0% adjusted EBIT margin after acquisitions, which we have embedded into our guidance.

I'm sure that you have also noticed, Eric, that we have upgraded a bit our 2030 EBIT margin target, because at the CMD, we said that we were looking for an average EBIT margin of about 20%, and now we make it clear that the average would be above 20%.

Yes, duly noted. Thank you.

Thank you. Good morning.

It's Martin from Citi. I don't want to labor the point too much, but just to come back to the the datacenter growth in in the fourth quarter, I appreciate that there are obviously some comp effects both from the very high growth in Q4 and also because of some of the acquisition effects as well.

Could you give us you've obviously given the €2.4 billion in absolute terms for the year, but in in euro terms for Q4, are we right in thinking datacenter sales in in in euro terms was sort of close to €700 million? Just just so we can make sure we square the circle in terms of how big datacenter was in in the fourth quarter.

I don't have this level of granularity, and it's a bit complicated because you have to embed FX, which is strongly negative in Q4 because of the dollar versus euro. You have to embed acquisitions and so it's a bit complicated to say.

It seems like you are surprised by the +10% in Q4, which is far better than what we guided for back in November for the last quarter. Again, you shouldn't look at the datacenter business as if it was a distributed business, right?

One quarter is impacted by the comps, impacted by the projects, and so on. If your question is is your target +10% in datacenter in 2026, the answer is no.

Our guidance is 10 to 20%, but of course we are targeting to grow as fast as possible. I wouldn't read the +10% in Q4 as any indication of what it would be for 2026.

What I can tell you again, and this is confirmed by the publication of our peers, this is confirmed by the huge capex plan from hyperscalers where the capex is growing from 50% to 100% between '25 and '26, it is confirmed by industry experts, it is confirmed by the backlog we have, it is confirmed by the book-to-bill which we have, 2026 is going to be another very good year in datacenters.

Thank you. No, yeah, we can obviously see the strength of the orders.

I think the debate or the confusion with the Q4 number is that the full year seemed to be a lot better than people had expected, and therefore that we would have thought the Q4 growth rate would have been higher. I'll go through the math afterwards.

I know there's a lot of moving parts on acquisitions and foreign exchange and these kind of things. Perhaps if I could just have one follow-up on datacenters.

Obviously you started off the year with a lower guidance. When the surprise comes, is it literally sort of an overnight surprise to you?

I know obviously the difference between backlog and pipeline, but in terms of when you're having those conversations with your customers, what sort of pipeline visibility do you have?

It's very complicated because again, we are not as experts as others in reading the pipeline, but again, the connection between backlog and sales is not that easy because all orders can be canceled, can be moved. Most of the contracts do have a pricing clause whereby you can adjust the price up or down depending on the price of raw material and components.

The orders we have are usually not three years orders. Our lead time are typically 8, 10, or 12 weeks for most of our products.

We have almost no products where you have longer lead time or lead time as high as 8 months, 10 months, or 12 months. Customers do not need to pass orders a year and a half in advance.

Most of the backlog we have will have to be delivered in 2026, not in 2027 and 2028. It's not solid enough as a leading indicator to tell you precisely, yes, we intend to grow 18.5% in datacenters in 2026 because the backlog would support that kind of growth.

It's more a trend topic, and these trend topic again confirm the very good 2026. I cannot be more precise than that.

In other words, to make a long story short: number one, we shouldn't try to read too much from the backlog, even though the numbers are very good. Number two, having a backlog or orders in hands is not a problem to pass on price increase if we needed to.

Great. Thank you very much.

Thank you.

Hi, good morning. Couple of follow-ups on data centers, please.

Obviously it sounds like you saw a similar sort of surge in center demand to your peers. I appreciate the comments about not overstating the importance of the backlog, but you obviously do talk about a promising order book there.

Does that surge in Q4 demand, does that really give you a sort of fast start to 2026 as well? I was just wondering what the outlook for Q1 data center growth was.

Obviously just last year, reflecting on 2025, that can be a little bit lumpy from one quarter to another, just to help us kind of calibrate expectations for the first quarter, thank you.

We are not guiding on quarterly sales or profit, neither on datacenters nor for the rest. Again, an exit rate doesn't mean much in the datacenter business.

No specific guidance to give you, Alasdair, for Q1. We stick to our early guidance.

Okay. Then maybe just the second question was on capacity to meet higher demand in datacenters.

Peer commentary, it sounds like constraints are creeping back in and on the rise again obviously because of the surge in demand. One of your slides mentions solid capacity to execute and adapt.

I appreciate that's probably a broader level across the group, but it feels like the ability to meet demand, short lead times, that's still very much a kind of competitive advantage right now in the industry. Just wondering if you could comment there

and

how you assess yourselves relative to the competition on that metric. Thank you.

Yeah. Far, the teams have done a very good job, I have to say.

We have doubled our capacity investment on datacenter in '24 compared to '23, and doubled again in in '25 compared to '24, still remaining actually within the 3% to 3.5% capex-to-sales level, we are not we are not increasing the capex guidance. We believe we we will still do a good job.

Yes, it's a it's a challenge, and the teams are working hard to meet the the demand. This is a business which is not capital intensive, you can increase capacity by working on your supply chain, by working with subcontractors, by adding shifts.

You don't have to spend millions and millions in in capex. It remains a challenge.

We've been able to to to to do a good job in the past two or three years, and I'm fully confident that it will not be a bottleneck for our business in 2026.

Okay. Perfect.

Thank you, Benoît.

Yes, good morning. Thank you very much for taking my questions.

Can I just clarify a couple of things first, and then I have one question. Sorry to come back to 800V DC,

but

in terms of when you talked about AC powertrain being neutral to positive within the 80% of your business, do you see that as in dollars per megawatt or just in absolute terms given there's going to be a lot more megawatts when we go to that architecture?

It's also dollar per megawatt. Again, I'm ready to have this discussion with your experts if you wish to.

Yes, we see much more solid, redundant, with more intensity AC powertrain, it should contribute to the slightly higher dollar per megawatt, indeed.

Okay.

On top of that, of course, you will have gigawatt datacenters and not megawatt datacenters, for datacenters as a whole, it's also a good news, huh?

Yes, yeah, we have no doubt in the growth in megawatts, or gigawatts in absolute. It's just a couple of people we spoke to basically suggest that there's at least one stage of switching that disappears in the DC 800V architecture and not the AC switching, I was just intrigued to hear that you see that as

a You have less UPS, which is true, but we have a very small market share in UPS in datacenters, I have to say. Again, it depends which DC architecture you're talking to.

If it is the next grid-to-chip then it's about DC and no longer AC. Again, this architecture is in the books today, huh?

In the architecture which is currently considered for '28, '29 in some of the datacenters, it's still an AC powertrain, huh?

Got it. Thank you.

Just I think related to that

I think there's a focus on this new architecture, which again is pretty good news for Legrand, not a bad news, which is too strong from the financial community. You are missing, I think, one point, which is the fact that number one, many architectures will continue, and even if this one has a meaningful market share, this market share is going to be 10, 12, 15%, not 100%, and it will probably be made of different type of sub-architectures, so many architectures will coexist.

If you talk to one hyperscaler, he will tell you that the past 10 or 12 years, they probably have 6, 7, 8 different architectures by hyperscaler. In total, you have tens and tens of different architectures coexisting.

There's not one that going to prevail in the years to come, number one. Number two, you consider companies such as Legrand as static animals, which do have a product portfolio which were not able to adapt and to adjust.

Again, look at what Legrand did in the past 8 years. If there's something new coming in the architecture, if there's one piece missing that we don't have, we'll develop it, we'll partner to get it, or we'll buy it by buying a company.

It shouldn't be such a concern. It's interesting to see that 1/4 of the questions on this call were on 800V DC.

I think there's too much emphasis putting on that topic.

Fair enough. No, completely take it.

On that kind of non-static animal, I guess that's what you're saying on the solid-state switching and breaking that you do not have it right now, but you're confident you will develop it or be able to buy it.

I don't want to be specific on one product family or on the other. Again, if we feel that there's something that we absolutely need to have, we will have it.

Most importantly, the current Legrand portfolio can address 99% of the needs of at least the next 5 years. That's a very important message that I want to channel to you.

Now, what will come in 6 or 7 years, it's a different story, but we will adapt. If we are ready to tackle only 70% or 80% of the architecture that will come in 8 years, but we will do what it takes to address the remaining 20%, and that's it.

We have product offering which is suitable for 99% of the architecture that will come in the next 4 or 5 years. That's it.

Great. Thank you.

Yeah.

Thank you very much. Can I just ask on that change to the margin ambition for 2030 from around 20 to above 20?

I guess as we learned on this call, above 30 can be 45. Just wanted to understand whether that above 20 is an ambition to continuously improve margin from here, or is it kind of, hey, the margin is above 20 now and we're kind of okay with it now?

No, we are not guiding more precisely than that because of course it depends on the acquisitions we're going to do. Last year our acquisitions were accretive, but they could very much be dilutive by 30, 40 bps.

It depends on the growth rate, it depends on the gross rate, and so forth. I don't want to shoot a number.

If you look at the past 6 years, '21 to '25, we've been consistently above 20%, and the average of the 5 years, if I'm correct, is 20.6%. Bon, I'm not saying that this is a new standard or new benchmark, but it means that it could be a 20.2, it could be 20.5, or it could be 21.

It will not be 35, if this is your question. No, we are not shooting a new target, just that it's going to be above 20%.

Very, very helpful. Thank you very much.

Thank you. Morning, guys.

Hope all are well. I had a couple.

I think a previous question assumed or sort of said you've had an order surge. Maybe I missed it in your opening remarks, but can you just give us a sense of your order development obviously in data centers in the fourth quarter?

The reason why we ask is your phasing and your timeline in projects can be a little bit different from others. If I look at Eaton, Vertiv, others that have reported, they've seen a kind of almost doubling of their orders between the third and fourth quarters, and up by 200%-plus year-over-year.

I guess my question is, I don't want a specific number, but are you seeing exactly that kind of trend qualitatively? When I think about the phasing of your growth in the current year, is it correct to assume that that growth, whether it's 10% to 20% or 30%, is back-end loaded?

I guess what I'm thinking about is how quickly we see any orders come through in the next six months. Thank you.

Hello, Ben. I'm a bit embarrassed because we have seen some order flowing, some backlog building, but I don't want to shoot a number because, again, I don't believe that it will help in any way to forecast what the 2026 sales is going to be.

Actually, when we look at our competitors, I don't know, yes, ABB showed an increase in backlog, but they are guiding for

a

growth in datacenters which is in the teens. Vertiv, if my correct, is saying that you shouldn't extrapolate anymore their orders and that they will not give it anymore quarter-by-quarterly.

I think everybody's more or less in line to tell you, be careful, you cannot extrapolate an order inflow, a backlog, or an order book into the next 12 months' sales. All the more for Legrand as, again, we don't have the same order pattern as an ABB, an Eaton, a Schneider, or a Vertiv.

We don't have orders, and we've never had in datacenters orders above a year. 95% of our orders should be delivered in 2026.

It's the very nature of our business, the fact that we have short lead time, maybe the products we are in, I don't know, maybe the geographies we are in, that makes me a bit uncomfortable to extrapolate the orders we have into sales. I know you don't like the answer, but unfortunately, I cannot give a better answer than that.

No, understood. By the way, I appreciate all the disclosure.

It goes round and round in circles, but I think we're all trying to get to the same thing. The second kind of question is just around North America on the margin side.

Putting 4Q to one side, it's pretty healthy evolution year-over-year, but we still have moving parts in terms of raw material, tariffs, etc. Is there any reason for us to think about the drop-through or the potential growth in North American margin obviously given your top line?

Is there any reason to think about it differently this year than last year, i.e., all else equal, we should be seeing some decent drop-through to your margin, or are there any qualifying effects? Thank you.

I will let Franck take this one. Go ahead, Franck.

Yes, hello, Ben. As you noted, effectively, the margin on Q4 alone for North and Central America is a little bit weak.

There is absolutely nothing sustainable. There are many moving pieces in that margin with the mix of business, with new acquisition, with some one-timers.

The way I'm reading the performance is more looking at H2 with a gross margin around 50%, with adjusted EBIT around 20%, which makes North and Central America very profitable. On a year-on-year basis, the margin is improving a lot despite the tariff challenge that we already shared.

Second, as you rightly said, interestingly, it's the value, the year-on-year growth,

24%

of improvement in value of the adjusted EBIT margin between '25 and '24, and that's in euros. It's close to 30 in dollars.

Bottom line, very very good performance of our US colleagues.

Understood. Thank you very much, and thank you for the patience with all of the data center questions.

You're welcome.

Thank you.

Good morning to you all, Benoît, and thank you for taking the question and the time. I have two questions: one relating to the structure of your guidance, one if I can harness your continued generosity on the data center discussion to talk about the definition of the business.

Firstly with data centers, you've talked a lot about the profile of the business here and the growth rates. Could you just touch on the customer profile?

We've seen a lot of growth across and announcements from hyperscalers, but there's a broad base of customers. How is your customer footprint positioned between the large-scale and the broader cloud providers and other providers, and how is the growth trends differing between the different DC-type customers?

Yeah. We are a mix of customers that more or less replicate the market.

That's the feeling we have. It's not always easy to identify all of them, but it's probably 1/3, a big 1/3 to 1/2 on hyperscaler, and then I don't know, cloud 20-25%, and on-premise maybe 25-30%, or those are the orders of magnitude.

If you take the market, there's no reason why our sales wouldn't replicate the market. Of course, the hyperscalers have been the one investing the most, we are growing very nicely on hyperscalers.

Now the growth is also very good on colocators, either serving hyperscalers or retail colocators. The one segment of the market which is not growing at the same pace is clearly on-premise datacenters, which have a much slower growth rate.

When it comes to cloud, neocloud, hyperscalers, or colos retail or colos, those are growing very nicely.

Thank you. Then maybe moving across to the segmentation detail that you provide annually on slide 15, could you talk a little about your expectations going forward for the growth rates across the energy transition category?

We've talked about buildings, which largely fall for essential infrastructure.

Yeah. Let's maybe a word on '25.

On '25, I told you that datacenter grew close to 40%, which implies that the rest is slightly growing only. Out of the rest, you have energy transition growing a little bit more.

You have digital lifestyle down, with connected health growing, but connected home being down, and this is a result of the housing market in Europe. Essential infrastructure is basically flat.

Plus for energy transition, flat for essential, slightly down for digital lifestyle. When it comes to 2026, it's difficult to be very precise because it will depend on the underlying markets.

Now, I see no reason why energy transition shouldn't do better than essential, because it is boosted by structural trends. The fact that the world is electrifying and moving from fossil energies to electricity is a structural trend that is here to last.

It should do a bit better than essential, but by a few points, not by 10 or 15 points. This is our central scenario.

A word, I'm not sure it was completely clear in the press release, which is very interesting: when we buy companies related to the critical power into datacenters, it's Link, company we bought in Malaysia, it's Aftron in the US, it's Kratos Industries in the US, and it's a few others, usually they're not doing 100% of their sales in datacenters. They are doing 50, 60, 70% of their sales in datacenters, and the rest of their sales is made in microgrids, in infra, in industries, and so on and so forth.

It helps us building an energy transition footprint in verticals in which we were not. We already had critical power in education, commercial buildings, office buildings, but we did not have critical power into microgrid or industries.

It's a sort of side effect of our acquisitions in datacenters: not only it builds our position in datacenters, but on top of that, it also reinforces and builds our position in energy transition.

Thank you. Maybe a last final follow-up relating to prospects.

We talked broadly about Europe, but I think Rexel last night printed 3.3% growth in France. I know they win market share.

What are your thoughts about some of the major European countries, and particularly France?

For 2026, well, number one, we are not growing in France, but we're not losing market share, and clearly Rexel has been massively gaining market share in France for quite some time. It's tribute to the teams.

For 2026, we start to be somehow a bit more positive than we were on France. I'm sure you have heard about this Plan Logement, this housing plan, the so-called Bazooka Plan, which the French authorities have stated that they intend to build 400,000 houses a year, which would be a surge compared to the current 270,000.

Now, we're a bit cautious because so far it's an announcement. We don't know yet the specifics about this plan, how will it be financed, what will be the measures that will be implemented in order to support this plan, but at least it signals a change of mood in France and the fact that now housing is considered again as a priority where it was not.

We are slightly more positive on the mood, at least. We'll see about the numbers.

When it comes to Germany, the Bazooka Plan should start to have a bit of impact. Southern Europe has been pretty healthy.

We did nice growth last year in Italy, for example. Spain is okay.

Again, I don't know, sound too optimistic, because we've been waiting for the rebound for two years and it did not really happen yet. Again, the signals start to be a bit more positive.

Now, before starting to applaud, we have to wait for the construction KPIs to flow into our numbers, which is not yet the case.

Thank you very much.

I just wanted to thank you for your interest in Legrand, thank you for the clarity of your questions, and should you have more questions and not only on the 800V DC, do not hesitate to call the IR team. We'll be happy to answer.

Thanks a lot.