Inchcape (INCH) Investor Update summary

2025 performance highlights

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

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

• Adjusted PBT rose 3% to GBP 443 million, and EPS grew 13% to 80.8 pence, supported by share buybacks.

• Free cash flow was GBP 315 million, with a 104% conversion rate and leverage reduced to 0.4x.

• Returned GBP 340 million to shareholders via dividends and buybacks, and invested in bolt-on M&A.

Strategic execution and operational initiatives

• Accelerate+ strategy drove new distribution contracts, including 10 new awards with major OEMs.

• Rationalized brand portfolio, exited non-core contracts, and expanded third-party retail network.

• Leveraged AI for pricing, inventory, and sales optimization, and launched vehicle pricing algorithms.

• Initiated cost reduction programs, especially in APAC, to address regional challenges.

• Enhanced collaboration with OEMs and optimized product and inventory management.

Regional performance and market context

• Americas and Europe & Africa posted strong growth, with Americas up 8% in both market volumes and revenue.

• APAC faced competitive pressures and weak premium segment, but Australia remained resilient.

• Europe & Africa benefited from contract wins and Iceland acquisition, with organic revenue up 6%.

• BYD insourcing in Europe is not seen as a broader trend among OEMs; most partners remain reliant.

• Market volumes grew 2% overall, with company volumes up 3%, outperforming the market.