Rexel (RXL) H2 2025 earnings summary

Executive summary

• Achieved market outperformance and margin resilience in 2025, meeting or exceeding all key performance indicators and full-year objectives, driven by business transformation, digitalization, and strategic initiatives.

• Delivered strong free cash flow conversion, margin performance, and robust acquisition activity, especially in North America, with targeted divestments.

• Accelerated digital and AI adoption, boosting productivity and operational efficiency, with digital sales rising to over one-third of group sales.

• Net income increased by 73% to €591.4m; recurring net income up 2.4% to €678.5m.

• Maintained a robust balance sheet and continued shareholder returns via dividends and buybacks.

Financial highlights

• Full-year same-day sales growth of 2.5%, with Q4 growth accelerating to 3.8%; reported sales of €19.4 billion, up 0.7% year-over-year, mainly driven by organic growth.

• Adjusted EBITA margin at 6.0% for 2025, up 10bps from 2024.

• Free cash flow conversion before interest and tax reached 76%, well above guidance and historical averages; 66.3% including a €124m French antitrust fine.

• Operating income reached €1,061.6m, up 25.5% year-over-year.

• Gross profit margin improved to 25.1% of sales.

Outlook and guidance

• 2026 guidance: same-day sales growth of 3–5%, adjusted EBITA margin around 6.2%, and free cash flow conversion above 65%.

• Medium-term objectives: 5–8% sales growth (including 2–3% from acquisitions), adjusted EBITA margin above 7%, and cash conversion of 65%.

• Expecting further growth in North America, gradual improvement in Europe, and continued focus on execution and cost discipline.