Rexel S.A.

Rexel reported H1 2026 sales of almost EUR 10 billion, up 2.2% reported, with same-day sales growth of 5.1% in the half and 6.7% in Q2. Adjusted EBITDA margin increased 40 bps to 6.2%, while non-adjusted EBITDA margin was 6.4% including a one-off gain on copper. Q2 same-day sales growth was supported by 3.1% volume growth and 3.6% pricing, with all regions positive on volumes for the first time since Q2 2023. Recurring net income was EUR 347 million, up 13%, gross cash flow before interest and tax was EUR 247 million, and free cash flow was close to EUR 250 million in H1. Net debt ended at EUR 3.3 billion with an indebtedness ratio of 2.4x. For 2026, Rexel now expects same-day sales growth of around 5% versus prior guidance of 3% to 5%, current adjusted EBITDA margin of at least 6.2%, and free cash flow conversion still above 65%.

Guillaume Jean Texier framed the quarter as evidence that Rexel’s multi-year repositioning is working, citing portfolio changes, growth initiatives and operational excellence. He emphasized secular growth pockets such as data centers in North America and electrification in Europe, plus record backlog that improves visibility for the rest of the year. His tone was constructive but measured: he repeatedly noted the macro and geopolitical backdrop remains uncertain and that the company is still being selective on where it invests.

Laurent Delabarre highlighted improving momentum from plus 3.4% in Q1 to plus 6.7% in Q2, with volumes contributing 3.1% and pricing 3.6% in the quarter. He walked through the 40 bps adjusted EBITDA margin expansion to 6.2%, driven by operating leverage, positive price-cost spread, and 4% productivity from action plans. He also noted other income and expense of minus EUR 8 million, financial expense of EUR 113 million, tax rate of 30.5% due to an exceptional French tax, and net debt of EUR 3.3 billion after EUR 398 million of acquisition-related cash outflow and EUR 353 million of dividends. He said H2 should have less favorable gross margin and carryover benefits than H1, which is why management stayed cautious despite the raised outlook.

Analysts focused on how much of the raised guidance came from data centers, electrification, and copper pricing versus underlying demand, and management said all three contributed, but that Europe and the broader U.S. economy remain softer than hoped. Questions also probed whether the strong HVAC demand in Europe was weather-driven and could fade; management said inventories were in good shape and that the underlying electrification trend still looks structural, though air conditioning demand is weather dependent. On margins, management said H2 usually has better seasonality, but this year should see less help from price-cost and action-plan carryover, so the company is guiding prudently rather than assuming a strong macro rebound.