Inchcape (INCH) H1 2026 earnings summary

Executive summary

• Achieved 9% reported revenue growth to £4.7 billion in H1 2026, with 5% organic growth and strong performance in the Americas and Europe & Africa, offsetting APAC weakness.

• Adjusted operating margin declined 40bps to 5.3% due to APAC margin contraction, but margins expanded in Americas and Europe & Africa.

• Adjusted EPS was flat at 35.5p, with higher tax rate and finance costs offset by share buybacks.

• Free cash flow conversion improved to 65% in H1 and 112% on an LTM basis; leverage at 0.5x EBITDA.

• Disciplined capital allocation continued, with share buyback program increased to £250 million and interim dividend up 14% to 10.8p.

Financial highlights

• Revenue: £4.7 billion, up 9% reported, 7% constant currency, 5% organic.

• Adjusted operating profit flat at £248 million; adjusted PBT down 6% to £188 million due to higher finance costs.

• Adjusted EPS flat at 35.5p; interim dividend up 14% to 10.8p.

• Free cash flow £84 million in H1; FCF conversion at 65%.

• Net debt/EBITDA at 0.5x, below 1x ceiling.

Outlook and guidance

• Reiterates medium-term guidance of >10% adjusted EPS CAGR through 2030.

• Expects FY 2026 organic volume growth at top end of 3–5% range and operating margin around 6%.

• Targets >100% free cash flow conversion for FY 2026.

• H2 expected to be stronger, with 20,000 additional vehicle volumes and margin improvement in APAC.

• Growth supported by increased share buybacks, recent acquisitions, and currency tailwinds.