Rexel (RXL) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 marked a return to positive same-day sales growth of 1.4% after five quarters of decline, led by North America and improving trends in Europe.

• Digital sales penetration reached 33% of total revenue, up 241bps year-over-year, reflecting strong digital adoption.

• Active portfolio management included the acquisition of Schwing Electrical Supply in the US and divestment of Finnish operations, aligning with the portfolio optimization strategy.

• Business Accelerators represented 30% of sales, with electrification at 21%, stable year-over-year and improved sequentially.

• Share buyback program continues, reflecting disciplined capital allocation.

Financial highlights

• Q1 2025 sales were €4.8 billion, up 2.5% on a reported basis; organic same-day sales grew 1.4%, with acquisitions contributing +1.9% net of disposals.

• Volume contributed +0.6% to growth; cable product pricing added +0.9%, non-cable pricing was nearly flat.

• Negative calendar effect of -1.8% due to the 2024 leap year; currency effects added +1.0%, mainly from US dollar appreciation.

• Backlogs remain strong, with US backlog at end of March 6% higher than December 2024 and stable in Canada.

• Selling prices contributed 0.8% to sales growth; improved pricing conditions in all geographies.

Outlook and guidance

• 2025 full-year guidance confirmed: stable to slightly positive same-day sales growth, with North America expected to offset weaker European demand.

• Adjusted EBITDA/EBITA margin expected around 6%; free cash flow conversion about 65%, excluding a €124 million fine paid in April.

• Ongoing monitoring of US tariff impacts on sales and profitability, especially in North America.

• Pricing expected to be mid to high single-digit up in North America in H2 2025; volume downside risk acknowledged.

• No reforecast of guidance due to ongoing uncertainty; upside in pricing may be offset by volume downside.