Inchcape (INCH) Q4 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%, and free cash flow reached GBP 315 million, supporting growth and returns.

• 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%.

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

• Adjusted basic EPS rose 13% to GBP 0.808; total DPS up 13% to GBP 0.323.

• Return on capital employed was 29%.

Outlook and guidance

• Expecting FY 2026 growth at constant currency, with organic volume growth at the lower end of 3%-5% guidance.

• Resilient operating margins of circa 6% and free cash flow conversion of ~100% anticipated, with H2-weighted performance.

• EPS growth of more than 10% targeted; performance skewed to H2 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.

• Continued momentum in Americas and Europe & Africa, with management actions addressing APAC challenges.