RS Group (RS1) Q3 2025 TU earnings summary

Executive summary

• Q3 trading was softer than anticipated, with group revenue for Q3 ended 31 December 2024 decreasing by 3%, or 1% on a like-for-like basis, due to weakening industrial production and extended customer shutdowns, especially in Europe and the UK.

• Trading recovered in January and stabilized in line with revised expectations, but a full catch-up for the year is not expected.

• Strategic initiatives in digital, technology, and operational efficiency are progressing, supporting share gains and cost savings.

• Full-year profit before tax is now guided to the bottom end of the current consensus range due to Q3 underperformance.

Financial highlights

• Annualised cost savings expected to exceed £30 million this year, in line or ahead of plan.

• Full-year profit before tax is expected at the lower end of consensus due to Q3 underperformance and weak EMEA confidence.

• Prior gross margin and cost guidance remain unchanged.

Outlook and guidance

• January trading is in line with revised expectations; difficult trading environment expected to persist until PMIs improve.

• Planning for relatively low growth and soft markets until a sustained improvement in PMI data is observed.

• Inflation costs for 2025 are expected to be around 3-4%, with similar assumptions for 2026.

• Cost base will continue to be managed with ongoing integration and restructuring, aiming for a more productive fixed cost base.

• Consensus for FY25: revenue £2,911m (range £2,871m–£3,011m), adjusted operating profit £293m (range £277m–£306m), adjusted PBT £261m (range £247m–£274m).