RS Group (RS1) H1 2026 earnings summary

Executive summary

• Delivered financial outcomes in line with expectations amid challenging but stabilizing markets, with strategic and operational investments supporting long-term value creation.

• Returned to marginal group revenue growth in Q2, with Americas and APAC growth offsetting EMEA decline; continued market share gains in all regions.

• Confidence in long-term value creation underpinned by disciplined cost management and capital allocation.

• Ongoing restructuring, pricing agility, and cost management supported results; strategic initiatives are improving operational metrics.

• Outperformed market in all major product categories and gained share from competitors in Europe.

Financial highlights

• Group revenue for H1 2025/26 was £1,403m, down 3% year-over-year (1% like-for-like); adjusted operating profit £122m, down 8% (7% LFL); margin at 8.7%.

• Gross margin improved to 43.1% (up 0.4 pts); adjusted free cash flow £86m; cash flow conversion at 107%.

• Net debt reduced by £31m to £333m, with net debt/EBITDA at 1.0x.

• Interim dividend increased by 2% to 8.7p per share; progressive dividend policy maintained.

• Adjusted EPS 17.6p (down 5%); basic EPS up 8% to 17.7p.

Outlook and guidance

• Full-year outlook remains unchanged; gross margin expected slightly above 43%; organic investment at lower half of £35–45m range.

• Capital expenditure forecast at £50m; effective tax rate c. 26%.

• Medium-term targets: revenue growth at twice market rate, mid-teen adjusted operating margins, >80% cash conversion, >20% ROCE.

• Integration and cost savings of at least £15m; restructuring/integration costs £10m–£15m.

• Depreciation and accruals expected to be weighted to the second half.