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 increased to 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.

• Full-year 2025 guidance was confirmed amid ongoing macro-political uncertainty and tariff impacts.

Financial highlights

• Q1 2025 sales were €4.8 billion, up 2.5% reported, with organic same-day sales up 1.4% and acquisitions contributing +1.9%.

• Calendar effect was -1.8% due to the 2024 leap year; currency effects added +1% in Q1.

• Selling prices contributed 0.8% to growth; cable pricing up 0.9% due to favorable copper prices.

• North America sales grew 3.8%, Europe declined 0.7% but improved sequentially, APAC up 1.4%.

• High backlogs, with US backlog up 6% from December 2024.

Outlook and guidance

• 2025 guidance reaffirmed: stable to slightly positive same-day sales growth, with North America offsetting weak European demand.

• Adjusted EBITA/EBITDA margin expected around 6%, free cash flow conversion ~65% (excluding €124M French fine).

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