Inchcape (INCH) Q3 2025 TU earnings summary

Executive summary

• Q3 performance was driven by market growth, new distribution contract wins, and successful product launches, with organic revenue growth of 8% and reported growth of 7% year-over-year, outpacing market growth of 5%.

• Strategic execution included the acquisition of Askja/Askyr in Iceland, making the group the market leader there, and the disposal of a non-core retail business in Australia.

• The group continues to optimize its distribution contract portfolio, exiting several small contracts in the Americas and focusing on scalable, profitable operations.

• Disciplined capital allocation was maintained, with ongoing share buybacks and a robust M&A pipeline.

Financial highlights

• Q3 revenue reached GBP 2.3 billion, up 7% in constant currency and on a reported basis year-over-year.

• Organic revenue growth was 8%, with distribution contract wins contributing about one-third of this growth.

• Volumes increased 13% to approximately 91,000 cars, significantly outpacing market growth of 5%.

• Americas and Europe & Africa regions outperformed their respective markets; APAC showed improvement over H1.

Outlook and guidance

• FY 2025 guidance is reiterated, expecting another year of growth at prevailing currency rates, including tariff impacts.

• A stronger second half is anticipated, supported by ongoing product launches and cost management.

• EPS growth is expected to outpace profit growth, targeting a medium-term EPS CAGR of over 10%.