3i Group (III) H1 2026 earnings summary

Executive summary

• Achieved a 13% total return for the half year, with NAV per share rising to 2,857p (£28.57), driven by strong Private Equity and Infrastructure performance, especially from Action and Royal Sanders.

• Action, the largest asset, saw net sales up 17.4% and operating EBITDA up 16.3% in the first nine months, with store expansion ahead of plan.

• Increased stake in Action to 62.3% through share issuance and reinvestment of distribution proceeds.

• Declared a 36.5p per share dividend for FY2026, maintaining a progressive dividend policy.

• Royal Sanders and other private equity holdings also delivered strong organic growth and cash flow.

Financial highlights

• NAV per share at period end: 2,857p (£28.57), up from 2,542p (£22.61) year-over-year.

• Gross investment return: 14% from private equity, 9% from infrastructure; total GIR of £3,406m.

• Action contributed £2.1bn to value growth in the half; portfolio value increased to £29.3bn.

• Cash realization of £391m, mainly from the sale of MPM and MAIT.

• Net debt of £772m, gearing of 3%, and liquidity over £1.6bn.

Outlook and guidance

• Expecting continued progress in the second half, with Action and Royal Sanders focused on long-term growth.

• Store opening guidance for Action increased to 380 for the year, with potential for further growth next year.

• Like-for-like sales guidance at risk in France due to macro headwinds, but medium-term ambition for 5%+ like-for-like growth remains.

• Cautious on new investments due to challenging macroeconomic and geopolitical environment.

• Transaction market and wider environment expected to remain challenging in the second half.