DCC shares gain as first-half results meet forecasts, outlook steady

Investing.com -- Shares of DCC Plc (LON:DCC) rose Tuesday after the Dublin-based sales, marketing and support services group reported first-half fiscal 2026 results broadly in line with expectations and maintained its full-year guidance.

DCC posted an adjusted operating profit of £207 million for the six months ended September 2025, compared with £219 million a year earlier. 

The figure marked a 5.4% decline on a continuing operations basis, reflecting weakness in its Products business. 

Revenue for the period was £7.38 billion, down 7.1% from the prior year. The company declared an interim dividend of 69.5 pence, up 5% year over year.

The first quarter showed a negative operating profit, while trading improved in the second quarter, resulting in modest growth. 

Organic growth declined by 4.8% in the first half, with mergers and acquisitions reducing growth by 0.5% and foreign exchange effects by 0.1%.

By division, Mobility reported 2.8% organic operating profit growth, and Energy Services rose 8.5%, offsetting a 12.8% decline in Products. 

The weaker Products result was linked to mild weather, strong prior-year comparisons and the disposal of the Hong Kong operation in 2024. 

The Technology division posted a 6.9% operating profit decline on a continuing basis, with a smaller organic drop of 2.4%.

DCC said it plans to launch a £600 million share buyback tender offer “shortly,” with completion expected in December 2025. 

The company has also committed about £50 million toward liquid gas acquisitions in Austria and the United Kingdom during the half, which it described as a continuing priority for growth. 

Morgan Stanley noted that integration and operational efficiency programs in North America are “progressing well and delivering to plan.”

DCC stated it intends to reach an agreement to sell its remaining Technology business by the end of calendar 2026. 

The company previously completed divestments in its Healthcare and Information Technology units and continues to advance its portfolio simplification strategy.

Guidance for the full fiscal year remains unchanged. DCC said it expects “a year of good operating profit growth on a continuing basis, significant strategic progress and ongoing development activity.” 

Consensus forecasts compiled by the company show a projected operating profit of £627 million for fiscal 2026, with adjusted earnings per share of 434 pence. 

Morgan Stanley’s estimates are nearly identical at £625 million and 431 pence. The report added that consensus figures are not expected to change following the completion of the tender offer in December.

The brokerage described the update as “a stable” one for the seasonally less significant half, highlighting progress on the company’s strategic plan announced in November 2024.