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UK's RS Group H1 revenue rises on pricing, volume growth

By Reuters News


Overview

  • UK industrial solutions provider's H1 revenue rose 10% yr/yr to £1.54 bln

  • Adjusted operating profit for H1 rose 17% yr/yr, margin expanded to 9.2%

  • Company completed over £35 mln of £100 mln share buyback programme


Outlook

  • Company expects trading momentum to remain encouraging in H2 2026/27 despite macro volatility

  • Company expects gross margin to remain stable in H2 2026/27

  • Company expects H2 2026/27 fixed costs to grow about 7%, variable costs at 14% of revenue


Result Drivers

  • PRICE AND VOLUME GROWTH - Co said revenue growth was driven by higher prices and increased volumes as end markets improved

  • PRICING INITIATIVES - Improved gross margin attributed to pricing actions and inflation, per co

  • AI AND DATA TOOLS - Expanded use of AI and data platforms supported customer targeting, pricing and operational efficiency


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

GBP 1.54 bln

H1 EBIT

GBP 131 mln

H1 Pretax Profit

GBP 121 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

  • Wall Street's median 12-month price target for RS Group PLC is GBp800.00, about 5.3% above its November 4 closing price of GBp760.00

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago


Reuters Recommended Reads

  • Nov 4 - UK's Barratt Redrow flags slower bookings after 12% decline in home completions

  • Nov 3 - Netherlands' Philips slightly misses Q3 revenue estimates, maintains 2026 forecast

  • Nov 3 - Eaton Q3 sales, EPS beat estimates on strong demand


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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