RS Group (RS1) H2 2025 earnings summary

Executive summary

• Achieved resilient performance in FY2025 despite challenging macroeconomic conditions, focusing on effective execution, operational control, and strategic investment.

• Continued to gain market share in high-service distribution channels and advanced digital and service solutions.

• Enhanced leadership, accountability, and agility have improved execution and delivery across the business, embedding revised operating models.

• Advanced ESG initiatives, earning top sustainability ratings and reducing emissions.

Financial highlights

• Revenue £2,904m, down 1% year-over-year (2% like-for-like); adjusted operating profit £274m, down 10% (8% LFL).

• Adjusted operating profit margin declined to 9.4% from 10.4%, mainly due to inflation in the cost base.

• Adjusted operating cash flow conversion exceeded 110% due to improved working capital management.

• Full-year dividend increased by 2% to GBP 0.224 per share (22.0p).

• RS Pro own brand grew 2% and now represents 14% of group revenue.

Outlook and guidance

• Planning for gross margin to remain broadly flat in FY2026, with pricing discipline maintained.

• Organic investment spend at lower end of GBP 35m–GBP 45m, with cost inflation expected at 3%.

• Targeting at least GBP 15m further cost benefits from efficiencies and Distrelec integration.

• Capital expenditure guidance unchanged at around GBP 50m, supporting infrastructure and ESG initiatives.

• Cash conversion expected to exceed 80% going forward.