Rexel reports Q3 sales growth as North America offsets European softness

Investing.com -- Electrical products distributor Rexel (EPA:RXL) reported third-quarter sales of €4.76 billion on Wednesday, a 3.0% increase on a same-day basis, driven primarily by strong performance in North America.

The company’s North American operations surged 7.4% on a same-day basis, with high-growth verticals such as datacenters and broadband infrastructure contributing to more than half of the growth in the US.

Meanwhile, European operations showed signs of improvement despite a 0.5% decrease, with the company citing "positive macroeconomic green shoots" in housing starts and transactions across France, Benelux, and DACH regions. Asia-Pacific also declined by 0.5% but demonstrated sequential improvement.

"Q3 was in line with the trends observed since the beginning of the year, with growth improving steadily in both North America and Europe," said Guillaume Texier, Chief Executive Officer. "The sequential improvement seen in Europe and Asia-Pacific demonstrates the strength, resilience and agility of the new Rexel in persistently soft conditions."

Pricing contributed 140 basis points to sales growth, consistent with the second quarter. The company also reported progress in its digital penetration, which improved by 136 basis points over the quarter.

Rexel narrowed its full-year 2025 sales growth guidance to "slightly positive" compared to 2024, from the previous outlook of "stable to slightly positive." The company confirmed its full-year profitability and cash flow targets despite what it described as a "competitive" environment.

The electrical distributor continues to implement its Axelerate 2028 strategy, which includes strategic investments in high-growth areas such as a new datacenter-focused distribution center in Reno, Nevada, and the expansion of Talley in Canada.

The company also completed the disposal of its Finland activities in September and issued a €400 million senior note due 2030.