Legrand Shares Drop After Results Miss Estimates

By Nina Kienle

Legrand shares fell on Thursday after the company's results for the first nine months of the year missed consensus estimates.

In European morning trading, shares were trading 11% lower at 131.65 euros, although they are up 40% in the year to date.

The French electrical and digital building infrastructure manufacturer posted sales for the nine-month period of 6.97 billion euros ($8.01 billion), shy of the company-compiled forecast of 7.03 billion euros. Organic growth was 8.2%, below the anticipated 8.9%.

Adjusted operating profit of 1.44 billion euros and a margin of 20.7% after acquisitions missed analysts' estimates of 1.47 billion euros and 20.9%, respectively.

"We think consensus was a little too aggressive on organic growth assumptions," RBC Capital Markets analysts Nick Housden said in a note to clients. Legrand had previously been clear that the second half of the year would become meaningfully tougher, he added.

Meanwhile, the manufacturer reiterated its full-year guidance of organic growth between 5% and 7%, as well as an adjusted EBIT margin of between 20.5% and 21.0%. Company-compiled consensus has organic growth at 8.4% and the adjusted EBIT margin at 20.9%.

"By our calculations, the top end of the guidance implies an around 1% cut to consensus adjusted EBIT while the midpoint implies a 3% cut," Housden said.

Cuts to earnings per share are likely to be bigger, given the higher-than-expected finance costs, he added.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

November 06, 2025 04:26 ET (09:26 GMT)