Rexel: Q4 sales & FY 2025 result

Core Insights - Rexel reported FY 2025 sales of €19,414.6 million, reflecting a year-on-year increase of 0.7%, driven by organic growth and acquisitions [1][10] - The current adjusted EBITA margin improved to 6.0%, up 10 basis points from 5.9% in FY 2024, indicating resilience in profitability despite challenging market conditions [1][20] - Net income surged by 73% to €591.4 million, while recurring net income rose by 2.4% to €678.5 million [1][26] Financial Performance - FY 2025 operating income reached €1,061.6 million, a 25.5% increase from €845.9 million in FY 2024, including exceptional items [1][26] - Free cash flow conversion was reported at 66.3%, or 76.4% excluding the impact of a €124 million fine, surpassing guidance for the third consecutive year [1][28] - The company maintained a robust balance sheet with an indebtedness ratio of 2.0x as of December 31, 2025 [1] Sales Growth - Same-day sales increased by 2.5% in FY 2025, with Q4 sales of €4,881.1 million reflecting a 3.8% increase on a same-day basis [3][7] - North America saw strong sales growth of 7.0% for FY 2025, with Q4 growth at 7.9%, driven by high-growth verticals such as datacenters and broadband infrastructure [15][16] - In Europe, sales were stable, with a slight decline of 1.1% for FY 2025 on a constant and same-day basis, while France reported a 1.5% increase [11][17] Strategic Initiatives - The company executed nearly €200 million in value-creating acquisitions and divested operations in Finland and New Zealand [4] - A proposed dividend of €1.20 per share represents a 52% payout ratio, maintaining a strong track record of returning value to shareholders [4][32] - Rexel's Axelerate 2028 strategic plan aims to enhance market outperformance and drive transformation initiatives across AI and digital platforms [2][5] Outlook - For FY 2026, Rexel anticipates same-day sales growth between 3% and 5%, with a current adjusted EBITA margin projected at approximately 6.2% [2][33] - The company expects to continue benefiting from structural electrification and AI-driven opportunities, supporting its medium-term ambitions [5][34]