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Electrical products distributor Rexel Q3 sales up on US data center demand, lifts 2026 outlook

By Reuters News


Overview

  • France-based electrical distributor's Q3 sales grew 11.4% on a same-day basis, highest since 2022

  • Company raised full-year 2026 guidance for sales growth and adjusted EBITA margin

  • Company agreed to acquire GCG in US, its largest deal in over 15 years


Outlook

  • Rexel raises 2026 same-day sales growth outlook to c.7% from c.5% previously

  • Company now targets at least 6.4% current adjusted EBITA margin for 2026, up from 6.2%

  • Rexel expects 2026 free cash flow conversion above 65%, unchanged from prior guidance


Result Drivers

  • US DATA CENTERS - Co said triple-digit growth in US data center segment contributed significantly to Q3 sales

  • INDUSTRIAL AUTOMATION - Co said industrial automation projects in North America boosted sales

  • SELLING PRICE INCREASES - Co said higher prices for cable and non-cable products supported sales growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

EUR 5.45 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Rexel SA is €43.00, about 31.4% above its October 21 closing price of €32.72

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Oct 22 - Rexel raises outlook again as US data-centre demand, European electrification drive growth

  • Oct 22 - Cable capacity emerges as bottleneck for AI data centres, Nexans says

  • Oct 22 - Nexans sales rise on grid, data-centre demand; confirms outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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