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Investing.com -- Shares in Inchcape (LON:INCH) rose more than 6% on Thursday after the automotive distributor reaffirmed its full-year 2025 guidance and reported a resilient operating performance for the first half of the year, citing limited impact from tariffs and continued contract momentum.
In a trading update ahead of its interim results for the six months ending June 30, scheduled for release on July 29, the London-listed company said total industry volume trends remained consistent across its markets, and that operational performance remained steady.
Regional performance continued to vary. Inchcape reported improvement in the Americas and ongoing resilience in Australia, while parts of Asia faced continued pressure. The company said it outperformed relative to market conditions in Europe and Africa.
The company secured two new distribution contracts in the second quarter, bringing the total number of new contracts signed year to date to nine.
Inchcape said it maintained a focus on inventory management, cost discipline and capital allocation. It noted that currency translation effects continued to act as a headwind.
The company reiterated its full-year 2025 outlook, stating it expects further growth, with the second half of the year supported by a favorable product launch schedule, particularly in the Asia-Pacific region.
Inchcape said it now incorporates an assessment of tariffs into its full-year view, and expects some impact on supply, demand and competitive dynamics, although it described the effect to date as limited.
The company forecast full-year earnings per share growth of about 10%, driven by profit growth and continued share repurchases.
Inchcape said it had completed approximately £150 million of its planned £250 million buyback program, representing about 7% of the company’s outstanding shares. The program is scheduled to run through March 2026.
Analysts at Jefferies said the update was consistent with guidance provided in April and indicated no material change to full-year consensus estimates.
Inchcape’s medium-term targets through 2030 include 3% to 5% organic growth, approximately 6% operating margins, return on capital employed of 25% to 30%, and cumulative free cash flow of £2.5 billion from fiscal years 2025 to 2030.
The company also targets compound annual earnings per share growth of 10% over the same period.