Cash 360

The treasury cockpit — 13-week cash, profit-to-cash conversion, working-capital unlock, receivables, liquidity and covenant headroom.

Legrand SA · FY2025 (31 Dec 2025, audited)

The global specialist in electrical & digital building infrastructures

39,600 employees · 50+ manufacturing & logistics sites · 90 countries

▲ Executive read· the answer, then the moves

Liquidity is sound at €2.0 bn (≈ 9 weeks cover), but €181.8 M of working capital is trapped in receivables — and far more in inventory. Pull DSO from 62d to 55d to help self-fund the ~€250 M/yr growth capex and the bolt-on M&A pipeline rather than lean on the €2.4 bn of covenant headroom.

4 of 5 headline metrics improving vs prior · still off target: Free Cash Flow €1.3 bn vs €1.4 bn, Cash Conversion Cycle 78d vs 70d, DSO (Days Sales Outstanding) 62d vs 55d

Do now — ranked by urgency

1
Unlock €181.8 M by pulling DSO to the 55d targetWatch
Why it matters
Every day of DSO above 55d ties up working capital; closing the gap releases ≈ €181.8 M of one-time cash.
What's driving it
DSO 62d vs 55d target
Overdue >60d = €150.0 M of €1.6 bn AR
FYI
Normalizing laggard brand families to 50d DSO releases ≈ €266.4 M
Owner: Treasury
Work the overdue book →▤ open the overdue receivables
2
Net debt up +40% on M&AWatch
Why it matters
Fund the bolt-on pipeline from FCF (€1,331 M, 107% conversion); keep leverage well inside the ceiling.
What's driving it
Net Debt / EBITDA
Signal: Alert
FYI
Net financial debt €4,223 M (from €3,006 M) → leverage 1.9× (was ~1.5×); still investment-grade vs ~3.0× ceiling.
Act →
3
FX (€/$) a ~−3% drag on reported growthWatch
Why it matters
Natural hedging via local production (US, India, China); report ex-FX to show underlying momentum.
What's driving it
Currency impact
Signal: Alert
FYI
A stronger euro cut reported growth to +9.6% vs +13% ex-FX; ~85% of sales are international.
Act →
4
ERP / digital (Gaia & Elia AI) — PlannedWatch
Why it matters
Unbanked synergies & margin until captured.
What's driving it
€25 M run-rate targeted
Signal: Synergy program
FYI
SAP S/4 + agentic AI tools (Gaia product data, Elia sales assistant on 200,000 references).
Owner: CFO
Act →

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↗ Where this connects — act / drill across

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Liquidity

€2.0 bn

≈ 9 weeks cover

Free cash flow

€1.3 bn

107% cash conversion

Cash conversion cycle

78d

DSO 62 + DIO 86 − DPO 70

Working-capital unlock

€181.8 M

DSO 62→55d target

Exhibit 1

13-week direct cash flow forecast

Net weekly cash (bars) and ending cash (line) vs. €350 M minimum. Forecast trough: €561 M.

Above minimum

€600 M

Opening cash

€3.1 bn

13-wk collections

€3.1 bn

13-wk disbursements

€612 M

Closing cash

Exhibit 2

Adj. operating profit → free cash flow

€2.0 bn adjusted operating profit converts to €1.3 bn FCF (107% of net income).

Exhibit 3

Cash collected

Monthly, €M.

Cash conversion cycle

Working-capital days

DSO — receivables62d

DIO — inventory86d

DPO — payables (offset)(70d)

Cash conversion cycle78d

Where cash is trapped

Working-capital cash unlock

€266.4 M

Normalizing laggard brand families to 50-day DSO releases ~€266.4 M one-time.

Raritan · Server Technology · Starline (Datacenter)66d

€74.5 M

Legrand (Wiring Devices & Controls)60d

€71.2 M

Avtron · Kratos · ZPE (Datacenter M&A)70d

€38.4 M

Numeric · Zucchini (Power & Busway)60d

€30.1 M

Bticino (Building Systems)58d

€28.1 M

Cablofil (Cable Management)58d

€24.1 M

Collections

AR aging

Total AR €1.6 bn

Current days€980 M

1-30 days€350 M

31-60 days€130 M

61-90 days€90 M

90+ days€60 M

Overdue (>60d) = €150.0 M.

Exhibit 4

Collections priority

Highest DSO first.

Account	Revenue	DSO	Credit risk
Datacenter operators & hyperscalers	€1.9 bn	68d	Low
Panel builders & integrators	€1.1 bn	60d	Medium
Electrical distributors & wholesalers	€5.2 bn	58d	Low
Electricians & installers	€800 M	55d	Medium
Retail / DIY & e-commerce	€481 M	40d	Medium

Exhibit 5

Supplier DPO

Working-capital lever.

Supplier	Spend	DPO	OTIF	Risk
Copper & non-ferrous metals	€900 M	70d	93%	High
Electronic components & semiconductors	€800 M	66d	90%	High
Plastics, resins & polymers	€650 M	72d	94%	Medium
Steel, sheet-metal & enclosures	€400 M	68d	92%	Medium
Logistics, energy & MRO	€300 M	60d	95%	Medium
Packaging & consumables	€250 M	65d	91%	Low