LLegrandExecutive Cockpit

Value Creation Plan

The shareholder-value view — start → today → target, the multiple-expansion that datacenter, connected products & bolt-on M&A earn, plus the software & services engine behind it.

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

Enterprise value has re-rated from €24.9 bn at the start of the journey to €39.2 bn today; €29.0 bn of the plan remains to the €68.2 bn 'Ambitions 2030' target. The prize is datacenter-led growth + multiple expansion — grow datacenter mix from 26% toward 30% and bank the €220 M of open strategic-program run-rate.

4 of 4 headline metrics improving vs prior · still off target: Total Revenue €9.5 bn vs €10.4 bn, Adjusted Operating Profit €2.0 bn vs €2.1 bn, Software & Services Mix % 15.0% vs 18.0%

Do now — ranked by urgency
  1. 1
    Capture the €29.0 bn of value remaining to targetWatch
    Why it matters

    €29.0 bn of enterprise value stands between today's €39.2 bn and the €68.2 bn target plan — the swing that compounds shareholder value.

    What's driving it
    • EV €24.9 bn → €39.2 bn today → €68.2 bn target
    • €14.4 bn created, €29.0 bn remaining
    FYI
    • Driven by adjusted-operating-profit growth and the AI/datacenter multiple re-rating
    • Datacenter mix 26% → Datacenter-weighted infrastructure tier (16–20×)
  2. 2
    Re-rate the multiple: grow datacenter mix toward 30%Opportunity
    Why it matters

    Climbing toward the AI-infrastructure platform tier is worth 2–3 turns of the multiple — on €2.0 bn of adjusted operating profit that is €3.9 bn–€5.9 bn from re-rating alone.

    What's driving it
    • Datacenter mix 26% · Datacenter-weighted infrastructure tier
    • Software & services revenue worth €2.8 bn at ~2.0× (€2.1 bn–€3.5 bn)
    FYI
    • Software, services & connected revenue €1.4 bn commands a premium 1.5–2.5× EV/revenue
    • Grow datacenter, connected & software; disciplined bolt-on M&A
  3. 3
    Bank the €220 M of open program run-rateOpportunity
    Why it matters

    €220 M of €250 M run-rate from the strategic programs is still to capture — the same work that finishes M&A integration and datacenter capacity and lifts blended margin.

    What's driving it
    • Programs €250 M run-rate, €30 M banked
    • 0 of 6 workstreams behind plan
    FYI

    M&A integration, datacenter capacity & cooling, Eliot platform, ERP / Gaia · Elia AI

Datacenter-led growthStep 2 of 7 · today → mid-term value-creation leversStrategy & GoalsEnterprise 360All journeys
🌐 Enterprise 360 modules· on Value Creation PlanBrowse all 31 views ▾
● LiveBuilt forBoard / Investors· thesis progress & shareholder valueChair / CFO· what moves the multipleStrategy· growth & M&A in the plan

Legrand runs a Value Creation Plan from start to target. The business has grown to €9.5 bn of revenue; the prize from here is datacenter-led growth + multiple expansion — the AI / datacenter re-rating lifts the business, and less-cyclical software, services & connected revenue is valued at a premium. This is the screen that tracks it.

Data backing: vcp (value-creation plan) · synergy_prog (strategic programs) · service_line (software & services) · kpi · sector multiple conventions
Enterprise value · start → today → target (adjusted operating profit × EV/EBITDA)
Start of journey
€24.9 bn
€1.8 bn adj. op × 14×
Today (FY2025)
€39.2 bn
€2.0 bn adj. op × 20×
Target ('Ambitions 2030')
€68.2 bn
€3.1 bn adj. op × 22×
Value created · remaining
€14.4 bn · €29.0 bn
The plan

Value-creation workstreams

Each lever shown start → today → target, with progress through the plan.

WorkstreamLeverStartTodayTargetProgressStatus
Scale the platformDatacenter, connected & bolt-on M&A€8.6 bn€9.5 bn€15.0 bn
On track
Grow datacenter & connectedAI/datacenter + Eliot21%26%30%
On track
Expand adjusted marginMix, pricing & productivity20.5%20.7%21%
On track
Grow profitScale × margin€1.8 bn€2.0 bn€3.1 bn
On track
Fund M&A, stay investment-gradeFCF + IG balance sheet1.5×1.9×1.5×
On track
Re-rate the multipleAI / datacenter re-rating14×20×22×
On track
Why datacenter re-rates the business

The multiple ladder

Datacenter mix moves the EV/EBITDA multiple. At 26%, Legrand sits in the datacenter-weighted infrastructure tier — every point toward 30% pulls it up.

Cyclical electrical hardware
datacenter mix <15%
10–13×
Electrical + connected
datacenter mix 15–25%
13–16×
Datacenter-weighted infrastructure · Legrand today
datacenter mix 25–35%
16–20×
AI-infrastructure & digital platform
datacenter mix 35%+
20–24×

Climbing toward the AI-infrastructure platform tier is worth 2–3 turns of the multiple — on €2.0 bn of adjusted operating profit, that's €3.9 bn€5.9 bn of enterprise value from re-rating alone.

The premium engine

Software, services & connected · a premium multiple

Less-cyclical software, services & connected revenue (Eliot / Netatmo subscriptions, datacenter monitoring & services, Performation software, aftermarket) commands a richer EV/revenue than cyclical hardware — separate from, and on top of, the blended multiple.

€2.8 bnpremium-engine value at ~2.0× revenue (€2.1 bn€3.5 bn at 1.5–2.5×)
Software & services revenue (Eliot, datacenter, Performation, aftermarket)€1.4 bn
Target software & services revenue€1.7 bn
Implied value @ 1.5× / 2.0× / 2.5×€2.1 bn / €2.8 bn / €3.5 bn

So what: scaling Eliot / Netatmo subscriptions, datacenter monitoring & services and building software creates value at a premium multiple — well above the 20× the blended company trades at. It's the single highest-return euro in the plan.

How value actually gets captured

€250 M of run-rate from strategic programs · €30 M banked

The concrete programs behind the value-creation % — not a slogan, a checklist.

Datacenter capacity & cooling
Critical-power, busway & advanced/liquid-cooling capacity for AI/HPC.
€90 MIn progress
M&A integration (FY2025 bolt-ons)
Cost / revenue synergies from the 7 FY2025 datacenter & digital-transition deals.
€60 MIn progress
Eliot / connected platform
Cloud, gateways & natively-connected products across Legrand / Netatmo / Bticino.
€45 MIn progress
Energy efficiency & electrification
EV charging (Green'up), UPS, microgrids — the 53% 'energy & digital transition' book.
€30 MCaptured
ERP / digital (Gaia & Elia AI)
SAP S/4 + agentic AI tools (Gaia product data, Elia sales assistant on 200,000 references).
€25 MPlanned

Legrand's value-creation playbook in action: M&A integration of the FY2025 bolt-ons, datacenter capacity & advanced cooling, the Eliot / connected platform, energy-efficiency & electrification, and ERP / Gaia · Elia AI digitalization. €220 M of run-rate is still to capture — the same work behind holding the 20%+ adjusted operating margin.