Pepco Group (PCO) Q3 2026 TU earnings summary

Executive summary

• Q3 FY26 revenue grew 8.5% year-over-year at constant currency, with like-for-like revenue up 5.4% excluding FMCG, led by Western Europe and strong trading in May and June.

• Completed the exit from FMCG retail, including the sale of Dealz Poland, transforming into a pure-play Pepco business focused on a single scalable brand and efficient format.

• Announced up to €400 million tender buyback for FY26, with a commitment to increase the regular dividend payout ratio to approximately 40%.

• Transformation over the past 12–18 months has created a self-funding, profitable growth engine with a clear strategy for continued expansion.

• Net new store openings reached 74 in Q3 FY26, totaling 4,151 Pepco stores at quarter-end.

Financial highlights

• Q3 FY26 revenue (excluding Dealz) was €1,089m, up 8.5% year-over-year at constant currency.

• Gross margin for 9M FY26 rose 290 basis points year-over-year to 51.9%, supported by sourcing efficiencies and FX tailwinds.

• Underlying EBITDA margin (IFRS 16) for H1 FY26 was 22.4%, up from 19.6% in H1 FY25.

• Free cash flow guidance for FY26 is ~€300m, with H1 FY26 unlevered FCF at €193m.

• Underlying PAT for FY25 (excluding Dealz) was €234m, with underlying EPS of 40.7 cents.

Outlook and guidance

• FY26 revenue growth expected at 6–8% (excluding Dealz), with gross margin guided at around 51%.

• Underlying EBITDA growth now forecast in the mid-teens, and underlying net earnings growth above 50% versus restated FY25 base.

• Unlevered free cash flow guidance raised to ~€300m, and ~250 net new store openings expected in FY26.

• Mid-term and FY27 guidance to be updated at year-end results in December.