LLegrandExecutive Cockpit
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Software & Services 360

The less-cyclical, recurring engine — Eliot / Netatmo connected subscriptions, datacenter monitoring & services, Performation & building software and aftermarket / installed-base services; the order book & renewals at risk, and the delivery quality (OTIF / first-pass) behind them.

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

€193 M of the €1,360 M renewal / order-book wall is flagged at-risk against a €1,400 M software & services base repeating at 112%. Defend the at-risk slice and attach connected / datacenter services across the installed base — subscription retention plus software & services mix is the earnings-quality lever the market values most.

6 of 6 headline metrics improving vs prior · still off target: Software & Services Mix % 15.0% vs 18.0%, Software & Services Revenue €1.4 bn vs €1.7 bn, Connected / Subscription Retention 112.0% vs 115.0%

Do now — ranked by urgency
  1. 1
    Defend the €193 M at-risk renewal wallAct now
    Why it matters

    Each point of attrition on the €1,400 M base is €14 M of software & services revenue gone — far cheaper to retain than to re-win.

    What's driving it
    • €193 M at risk of €1,360 M due (next 4 quarters)
    • Subscription retention 112% vs 115% target
    FYI
    • Software & services base €1,400 M across 8,050 active contracts
    • Owner: RevOps · Software & Services
    Open renewal wall →
  2. 2
    Grow the software & services mixWatch
    Why it matters

    Software & services mix 15% sits 3pts below the 18% target; Eliot / Netatmo connected subscriptions is the best economics in the book at 62% GM and 114% retention.

    What's driving it
    • Software & services mix 15% vs 18% target
    • Eliot / Netatmo connected subscriptions 62% GM / 114% retention — highest in the book
    FYI
    • Blended service-line GM 58% vs ~51% company gross
    • Closing the mix gap lifts recurring earnings quality
    Attach play →
  3. 3
    Close the delivery misses behind the renewal promiseWatch
    Why it matters

    Contracts only renew if delivery holds: on-time delivery (OTIF) 96% sits 2pts under 98% and first-pass quality 98% is 1pts under 99%.

    What's driving it
    • On-time delivery (OTIF) 96% vs 98% target
    • First-pass quality 98% vs 99% target
    FYI
    • Plant capacity utilization 85% vs 90% target across 2.1k monitored plant assets
    • Owner: EVP, Operations
    Delivery quality →
  4. 4
    €40 M of contracts at risk — Q3 FY26Watch
    Why it matters

    Each lost renewal is recurring software, services & connected revenue that won't repeat.

    What's driving it
    • renewal window Q3 FY26
    • Signal: Renewal risk
    FYI
    • Of €330 M of software, services & connected contracts up for renewal in Q3 FY26, €40 M is at risk of non-repeat.
    • Owner: Commercial · Key Accounts
    Act →▤ open the at-risk contracts
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● LiveBuilt forRevOps · Software & Services· defend & grow the recurring bookCFO / Board· earnings quality (subscription retention)Operations· OTIF & utilization behind the contracts

Software & services revenue is Legrand's less-cyclical engine — €1,400 M across 8,050 active contracts, repeating at 112%. This view is where it's defended: which service lines carry the margin, which are up for renewal and at risk, and whether delivery quality is holding up the promise.

Data backing: service_line (software & services lines) · renewal · kpi (subscription / connected retention) · ops_metric (utilization / OTIF / quality / stoppages)
€1,400 M
Software & Services revenue
15% of revenue
8,050
Active contracts
across 4 service lines
112%
Subscription / connected retention
vs 115% target
58%
Blended service-line GM
vs ~51% company gross
2.1k
Monitored plant assets
lines · presses · test cells · PDUs
The software & services book

Revenue by service line

Eliot / Netatmo connected subscriptions is the highest-margin, highest-retention line — the one to attach across the installed base.

Eliot / Netatmo connected subscriptions€500 M · 4,200 contracts
Cloud, gateways & subscriptions across Netatmo / Legrand / Bticino connected products.
Repeat
114%
GM
62%
Datacenter monitoring & services€500 M · 900 contracts
Raritan / Server Technology / Starline monitoring, testing & aftermarket services for AI/HPC datacenters.
Repeat
118%
GM
58%
Performation & building software€200 M · 350 contracts
Connected-healthcare (Performation) & building-management software subscriptions.
Repeat
110%
GM
60%
Aftermarket, warranty & installed-base services€200 M · 2,600 contracts
Extended warranty, spares & service across the installed base.
Repeat
108%
GM
45%
The renewal wall

€1,360 M up for renewal · €193 M at risk

Next four quarters of contract / order-book renewals. At-risk = attrition-flagged or contraction-likely.

Q3 FY26€330 M due · €40 M at risk
Q4 FY26€360 M due · €55 M at risk
Q1 FY27€320 M due · €38 M at risk
Q2 FY27€350 M due · €60 M at risk

Defend first: the €193 M at-risk slice. Each point of attrition on the €1,400 M base is €14 M of software & services revenue gone — far cheaper to retain than to re-win.

The attach play

Attach across the installed base

Software & services mix is 15% vs an 18% target; the gap is connected / services content not yet attached.

Eliot / Netatmo connected subscriptions is the lever: 62% GM and 114% retention — the best economics in the book. Attaching it to existing distributor & datacenter accounts both raises margin and lifts the software & services mix.

Eliot / Netatmo connected subscriptions is the moat: 4,200 sticky contracts — repeat-buying even at lower margin; the foot in the door for cross-family attach.

Mix gap to target
15% → 18%
closing it lifts recurring earnings quality
Is the promise holding?

Delivery quality behind the contracts

Contracts only renew if delivery is good — these are the OTIF, first-pass quality & utilization measures behind the order book.

Plant capacity utilization
85%
target 90%
On-Time Delivery (OTIF)
96%
target 98%
First-pass quality
98%
target 99%
Sites below quality / OTIF target
3
target 0
Critical line stoppages (quarter)
11
target 0