Relais Group (RELAIS) Q2 2026 earnings summary

Executive summary

• Net sales grew 33% year-over-year in Q2 2026 to EUR 110.5 million, with 4% organic growth and acquisitions contributing 25 percentage points.

• Operating cash flow reached a record EUR 6.8 million in Q2, with cash conversion at 99.6%, reflecting strong working capital management.

• Adjusted EBITA increased 6% to EUR 8.0 million, but margin declined to 7.3% from 9.1% due to credit loss provisions, growth investments, and temporary relocation costs.

• Profitability was impacted by EUR 1.2 million in ECL provisions, growth investments, and temporary effects from a major workshop relocation.

• Focus remains on converting top-line growth into improved profitability and returns, with operational and working capital discipline as key priorities.

Financial highlights

• Adjusted EBITA was EUR 8.0 million in Q2; reported EBITA EUR 6.2 million, with EUR 1.9 million in items affecting comparability, including discontinued IT projects and a new incentive plan.

• Adjusted EBITA margin declined to 7.3% from 9.1% year-over-year, mainly due to increased expected credit loss provisions and M&A mix.

• Basic EPS for Q2 was EUR -0.09 (down from EUR 0.08 last year); adjusted EPS excluding acquisition amortizations was EUR 0.12 (down from EUR 0.15).

• Return on capital employed was 10.8%, return on net working capital 42.8%, and return on equity 7.1%.

• Net debt at end of Q2 was EUR 226.0 million, slightly down from EUR 226.9 million last year; net debt to LTM EBITDA at 3.7x.

Outlook and guidance

• No numeric full-year guidance provided; market conditions broadly stable with some variation across units and geographies.

• Priorities for H2 include converting growth to profitability, maintaining capital efficiency, and focusing on EBITA growth.

• No new organic investments or locations planned for Technical Wholesale in H2; focus is on ramping up existing investments.

• Second half of the year expected to contribute a larger share of earnings due to seasonal effects.

• Long-term targets are double-digit EBITA growth and ROCE above 13%.