Rexel (RXL) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 saw all three geographies—North America, Europe, and Asia-Pacific—in positive territory for the first time in 11 quarters, with North America and Asia-Pacific leading and Europe showing sequential improvement supported by electrification trends and government subsidies.

• Growth was driven by strong pricing, high-growth segments like data centers and broadband infrastructure in North America, and booming solar and battery activity in Australia.

• Europe benefited from a rebound in electrification and improved pricing, despite temporary volume softness and macroeconomic challenges.

• The Middle East crisis had limited impact in Q1, but ongoing geopolitical uncertainty and macroeconomic risks remain.

• Digital penetration increased, reaching 36% of sales globally and 44% in Europe.

Financial highlights

• Q1 2026 sales totaled €4,825m, up 1.7% year-over-year; same-day sales grew 3.4%.

• Selling price increases contributed 280 basis points to growth, while volumes added 60 basis points.

• Currency effects were negative due to USD depreciation, with FX impact at -4.3% and calendar effects at -0.9%.

• Digital sales accounted for 44% in Europe, 28% in North America, and 28% in Asia-Pacific.

• Acquisitions (including Techno-Contact 360) and disposals (Finland) impacted reported figures.

Outlook and guidance

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

• Cautious approach maintained due to macroeconomic and geopolitical uncertainties, especially related to the Middle East.

• Additional supplier price increases of 3–5% anticipated in North America, with uncertainty on how much will stick.

• Cost initiatives and AI-powered tools expected to offset inflation and support resilience.