Rexel Sa Stock Earnings Reports

Rexel delivered a resilient 2025 despite a mixed macro backdrop: same-day sales grew +2.5% for the year and +3.8% in Q4, adjusted EBITA margin rose to 6.0% (in line with guidance), and free cash flow conversion before interest and tax reached 76% (well above the >65% target, excluding a €124m French fine). Performance was driven by North America (notably data centers, broadband and industrial automation) while Europe remained muted, prompting targeted cost actions (~600 FTEs reduction in 2025). The group completed multiple bolt-on acquisitions (4 in 2025; 21 over the period) and 2 disposals, sharpening the portfolio and emphasizing North America and higher-margin adjacencies. Digital and AI adoption is being scaled (quoting, order entry, chatbots) and is already contributing to productivity gains (productivity ratio up to 2.8% in 2025). Management launched Axelerate2028 to accelerate sales-force productivity, supply-chain automation, pricing, and adjacent services. For 2026 management guides same-day sales growth of +3% to +5%, a current adjusted EBITA margin around 6.2%, and free cash flow conversion above 65%. They confirm midterm targets: annual sales growth of 5%–8% (including 2%–3% from acquisitions), adjusted EBITA margin above 7% and cash conversion ~65%. Key risks/variables called out: continued OpEx inflation slightly ahead of selling-price increases, the pass-through and timing of commodity (copper/silver) price moves, and macro/ tariff uncertainties in North America.