Pepco Group (PCO) Q4 2026 TU earnings summary

Executive summary

• Achieved strongest quarterly like-for-like (LFL) revenue growth since strategy reset, with Q4 constant currency revenue up 15.6% and LFL revenue excluding FMCG up 9.5%.

• Completed transformation into a pure-play Pepco business following the sale of Dealz Poland.

• Eight consecutive quarters of positive LFL sales growth, driven by operational changes and focus on customer proposition.

Financial highlights

• Full-year revenue expected to exceed €4.5 billion, representing constant-currency growth of approximately 8%, at the top of the 6-8% guidance range.

• FY26 gross margin expected around 51%, up 200 basis points year-over-year, driven by sourcing efficiencies and favorable mix.

• Underlying EBITDA (IFRS 16) growth projected in the mid-teens; underlying net earnings growth expected to exceed 60% year-over-year.

• Unlevered free cash flow anticipated to surpass €350 million, above previous guidance.

• Capital expenditure for FY26 expected at €150 million, below the mid-term range.

Outlook and guidance

• Revenue growth for FY26 expected at the top of guidance, with continued focus on store expansion and operational improvements.

• At least 600 new stores planned in Western Europe between FY27 and FY30.

• Future LFL revenue growth to be reported as a single metric, reflecting the exit from FMCG categories.