Inchcape (INCH) H2 2025 earnings summary

Executive summary

• Delivered strong FY 2025 results despite tariff disruptions and economic uncertainty, with record PBT in Americas and Europe & Africa, and improved H2 in APAC.

• Continued execution of Accelerate Plus strategy, winning new distribution contracts and completing an acquisition in Iceland.

• Returned GBP 340 million to shareholders via dividends and buybacks; EPS and DPS grew 13%.

• Employee engagement rose to 81%, up 4 points YoY, reflecting a high-performance culture.

• Growth expected in FY 2026, with continued focus on operational execution and capital allocation.

Financial highlights

• Revenue reached GBP 9.1 billion, with 1% organic growth and operating margins of 6.2%.

• Adjusted PBT was GBP 443 million, up 3% in constant currency; adjusted operating profit GBP 563 million, down 1% in constant currency.

• Free cash flow of GBP 315 million, with 104% conversion to adjusted profit after tax.

• Adjusted basic EPS up 13% to 80.8 pence; total DPS up 13% to 32.3 pence.

• Return on capital employed at 29%.

Outlook and guidance

• FY 2026 expected to be a year of growth, with organic volume growth at the lower end of the 3%-5% range.

• Resilient operating margins of circa 6% anticipated, supported by aftersales, finance & insurance, and cost actions.

• Free cash flow conversion of ~100% and EPS growth of >10% targeted.

• Performance expected to be H2-weighted due to seasonality and APAC supply chain phasing.

• Medium-term targets reiterated: >10% EPS CAGR to 2030 and GBP 2.5 billion free cash flow by 2030.