Rexel S.A.

Rexel said H1 2026 sales were almost EUR 10 billion, up 2.2% reported, with same-day sales growth of 5.1%. Q2 same-day sales growth was 6.7%, driven by 3.1% volume growth and 3.6% selling price contribution; North America grew 7.8%, Europe 2.4%, and Asia Pacific 17%. Adjusted EBITDA margin increased 40 bps to 6.2%, while nonadjusted EBITDA margin was 6.4% including a one-off gain on copper. Recurring net income was EUR 347 million, up 13%, and free cash flow was close to EUR 250 million with a 37% conversion rate. For 2026, management now expects same-day sales growth of around 5% versus a prior 3% to 5% range, current adjusted EBITDA margin of at least 6.2%, and free cash flow conversion above 65%.

Guillaume Jean Texier framed the quarter as proof that Rexel’s multi-year portfolio and execution strategy is working, pointing to growth in secular areas like data centers, electrification and industrial automation. He emphasized that the results came in a low-cycle, volatile environment, with record productivity and better visibility from backlog. His tone was confident but still cautious, repeatedly noting macro, geopolitical and competitive uncertainty.

Laurent Delabarre focused on the mechanics of the quarter: volume and price both contributed to Q2 growth, with volumes up 3.1% and selling prices up 3.6% overall. He highlighted adjusted EBITDA margin improvement of 40 bps to 6.2% despite product mix pressure, plus operating leverage, positive price/cost spread, and a record 4% productivity gain. He also detailed cash and balance sheet items: gross cash flow before interest and tax of EUR 247 million, trade working capital at 16.3%, net debt up by EUR 390 million to EUR 3.3 billion, leverage at 2.4x, and liquidity of EUR 1.8 billion; he also cited 2026 expectations of about EUR 35 million in other income and expense and circa EUR 230 million in financial expense.

Analysts focused on whether Q2’s strength in Europe electrification and HVAC could persist, how much pricing still had room to run, and what was driving the guidance upgrade beyond data centers. Management said electrification demand in Europe continued into July and looked partly structural, but HVAC demand tied to heat waves was more weather-dependent; pricing would continue to rise a little in H2, but not at the H1 pace. They also said North American growth excluding data centers was weaker, with some verticals such as automotive and office space soft, and they characterized the upgraded outlook as conservative rather than implying a sharp slowdown.