Rexel (RXL) H1 2025 earnings summary

Executive summary

• H1 2025 sales reached €9.8bn, up 1.6% same-day, with Q2 acceleration driven by North America volumes and digital transformation; digital sales accounted for 33.6–34% of sales, up nearly 200bps YoY.

• North America delivered strong growth, especially in datacenter and broadband segments, offsetting European and Asia-Pacific declines; these segments now represent about 12% of U.S. sales.

• Profitability remained resilient with adjusted/current adjusted EBITA margin at 5.8% (vs. 6% H1 2024), supported by cost initiatives and a 2.1–2.2% FTE reduction.

• Five acquisitions completed or announced in H1 2025, strengthening positions in North America, Canada, and Italy.

• Paid €124m French Competition Authority fine in April 2025, which is under appeal.

Financial highlights

• H1 2025 sales: €9,775.3m–€9.8bn (+1.5% reported, +1.6% same-day); Q2 sales: nearly €5bn (+0.6% reported, +1.8% same-day); digital sales rose to 33.5–34% of total.

• Adjusted/current adjusted EBITA margin at 5.8% (down from 6% H1 2024); gross margin stable at 25%.

• Recurring net income was €308m (vs. €341m H1 2024); net income fell 25.9% to €261.6m.

• Free cash flow before interest and tax was €251m (42% conversion), or €127m after the €124m fine; above 5-year H1 average.

• Net debt at €3.1bn, leverage ratio at 2.4x, expected to decline by year-end.

Outlook and guidance

• Full-year 2025 guidance confirmed: stable to slightly positive same-day sales growth, adjusted EBITA margin around 6%, and ~65% free cash flow conversion (excluding €124m fine).

• North America expected to offset European weakness; tariff-related price increases and additional working days in H2 to support results.

• Profitability improvement action plans in place to address regional disparities.