Legrand's Strong H1 2025 Performance Reflects Data Center Infrastructure Tailwinds

In the first half of 2025, Legrand has emerged as a standout performer in the industrial and technology sectors, driven by its strategic alignment with the AI-driven data center boom. The French multinational's H1 2025 results reveal a 15% sales growth (excluding exchange-rate impacts) and an adjusted operating margin of 21.0%, with data center infrastructure accounting for 24% of total sales and delivering organic growth of +9%, according to Legrand's 2025 first-half results. This performance underscores Legrand's ability to capitalize on global demand for high-density, energy-efficient solutions as AI, cloud computing, and edge computing reshape the data center landscape.

Strategic Acquisitions Fuel AI-Ready Infrastructure

Legrand's aggressive M&A strategy in 2025 has positioned it at the forefront of the data center revolution. The company has completed seven acquisitions year-to-date, four of which are data center-focused, including Avtron Power Solutions (a leader in liquid-cooled load banks for high-density AI applications), Amperio Project (Switzerland), Computer Room Solutions (Australia), and Linkk Busway Systems (Malaysia). These acquisitions, expected to add €500 million in annualized revenue, directly address the surging need for modular, scalable infrastructure to support AI workloads.

Notably, the $1.125 billion Avtron acquisition has amplified Legrand's capabilities in power quality and load testing, critical for AI-driven data centers where energy efficiency and reliability are paramount; Legrand detailed the deal on its website in the Avtron acquisition. As stated by Legrand's CEO, this move aligns with the company's "energy and digital transition" ambitions, ensuring it remains a key player in markets projected to grow significantly through 2030, according to a Yahoo Finance article.

Market Tailwinds and Financial Resilience

The data center infrastructure market is experiencing unprecedented growth, with Legrand's data center revenue surging nearly sevenfold since 2018 and on track to exceed €2 billion in 2025 (driven in part by the Avtron acquisition). This trajectory mirrors broader industry trends: the global data center rack market is forecasted to expand rapidly, driven by AI adoption and the need for edge computing solutions, according to a rack market forecast. Legrand's U.S. operations, which contribute 39.2% of its revenue, saw a 21.6% sales increase in H1 2025, reflecting strong demand in North America's AI-centric tech hubs - a trend noted in Legrand's Avtron acquisition announcement.

Financially, Legrand has revised its full-year 2025 guidance to a sales growth range of +10% to +12% (excluding currency effects) and an adjusted operating margin of 20.5% to 21.0%, as detailed in the company's 2025 first-half results. This resilience, even amid macroeconomic volatility, highlights the company's disciplined cost management and strategic focus on high-margin data center solutions.

Risks and Long-Term Outlook

While Legrand's positioning is compelling, investors should monitor risks such as supply chain bottlenecks and currency fluctuations, which could impact margins. However, the company's diversified geographic footprint and emphasis on organic growth (8.2% in the first nine months of 2025) - a figure discussed in the Yahoo Finance article - suggest a robust buffer against short-term headwinds.

Looking ahead, Legrand's Ambition 2030 plan-focusing on energy transition, digital innovation, and sustainable growth-provides a clear roadmap for sustained leadership in the data center sector. With AI-driven demand expected to remain a multi-year tailwind, Legrand's strategic acquisitions and operational agility position it as a prime beneficiary of this transformative wave.