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Investing.com -- Rexel posted a 1.6% rise in first-half 2025 sales on a same-day basis, supported by stronger volumes in North America and early pricing benefits from U.S. tariffs.
Second-quarter sales rose 1.8% on the same basis, as North American activity improved and non-cable selling prices increased 0.9%.
The company’s shares rose 3.6% in Paris trading as of 07:18 GMT.
Barclays (LON:BARC) analyst George Featherstone said Rexel ’s Q2 print beat the bank’s and consensus expectations, and "highlights why you want to own a cornerstone of the U.S. electrical equipment supply chain."
While the European market remained challenging, Rexel (EPA:RXL) said it achieved market share gains in key countries.
Digital sales rose to 33.6% of the Q2 total, up nearly two percentage points year-on-year.
“Our teams delivered solid performance across the board, capitalizing on high-growth segments such as datacenters and broadband infrastructure and achieving market-share gains in key European countries despite continuing softness in demand,” said Chief Executive Guillaume Texier.
Rexel reported a current adjusted EBITA margin of 5.8% for the first half, citing further productivity initiatives.
First half operating income for the period was €505.7 million, down from €576.8 million a year earlier, while recurring net income slipped to €307.9 million from €340.8 million.
Texier added: “Our recent performance as well as the additional initiatives that we have launched strengthen our confidence in our ability to deliver on our midterm objectives, thanks to the value-creating potential of our Axelerate 2028 roadmap.”
Looking ahead, the company maintained its full-year guidance, expecting stable to slightly positive same-day sales growth and current adjusted EBITA margin at around 6%.
Barclays expects a gradual recovery in short-cycle demand during the second half of the year, likely reflected in improving manufacturing PMIs, which could support a re-rating of Rexel’s valuation.
Analysts believe concerns about the cycle are already priced in, with earnings momentum nearing a positive turn. They also point to recent portfolio changes, including the disposals of New Zealand and Finland, as signs of management’s strategic focus.
"Ultimately Rexel should continue to benefit from price inflation and supply chain dislocation associated with tariffs," Featherstone said.
(Additional reporting by Vahid Karaahmetovic.)