Inchcape posts lower FY25 profit, launches £175m buyback

Core Insights - Inchcape reported lower revenue and profit for FY2025, with a new £175m share buyback announced [1][5] Financial Performance - Revenue from continuing operations decreased by 2% to £9.10bn from £9.26bn [1] - Operating profit from continuing operations fell by 6% to £526m, with operating margin down 30 basis points to 5.8% [1] - Total profit for the period dropped by 37% to £273m, while basic earnings per share increased by 9% to 72.5p [1] Dividend and Regional Performance - Full-year dividend increased by 13% to 32.3p per share, aligning with the 40% adjusted basic EPS payout policy [2] - Asia-Pacific (APAC) region saw a 15% decline in revenue to £2.54bn and a 23% drop in adjusted operating profit to £182m [2] - Europe & Africa recorded an 8% revenue growth to £3.26bn, with adjusted operating profit up 6% to £151m [2] - The Americas delivered revenue of £3.30bn, up 1%, while adjusted operating profit increased by 11% to £230m [2] Strategic Developments - Inchcape secured 10 distribution contract wins and acquired Icelandic distributor Askja for £35m [3] - A £250m buyback was completed on 2 March 2026, with a further £175m program announced [3] - The CEO highlighted the company's diversified business model and double-digit EPS growth during a transformative year in the automotive sector [3] Future Outlook - For FY2026, the company anticipates organic volume growth towards the lower end of its 3%–5% guidance range, weighted to the second half [4] - Expected adjusted operating margins are around 6%, with free cash flow conversion of approximately 100% and EPS growth of more than 10% [5]