Rexel delivered robust financial performance in the first half of 2026, reporting a 31% year-on-year increase in net income to €342m. The Paris-listed electrical distributor posted sales of €9,989m, representing a 5.1% growth on a constant and same-day basis, as strategic investments in high-growth segments such as data centers and electrification solutions gained traction. This acceleration allowed the company to raise its full-year 2026 guidance, signaling confidence in its ability to capitalize on secular trends despite a volatile macroeconomic environment.

The Board of Directors authorized the half-year financial report on July 27, 2026, which was subject to a limited review by auditors. Rexel’s adjusted EBITA margin improved by approximately 40 basis points to 6.2%, up from 5.8% in the corresponding period last year. Current adjusted EBITA reached €615m, while recurring net income rose strongly by 12.6% to €347m. The results reflect disciplined cost management, favorable selling price increases, and accretive effects from recent portfolio management activities.

Regional Performance

Sales momentum was broad-based, with positive volume trends observed in all geographies for the first time since Q2 2023. North America, contributing 47% of group sales, saw same-day sales growth of 7.8% in Q2, driven primarily by data center activity and industrial automation. Europe returned to positive territory with a 4.4% same-day sales increase, supported by energy transition solutions including solar, HVAC, and EV charging stations. Asia-Pacific recorded the highest growth at 17.0% on a constant and same-day basis, boosted by solar activity in Australia and industrial automation in China and India.

Profitability and Cash Flow

Profitability expanded due to operating leverage and a positive delta inflation effect, where selling price increases of 3.3% outpaced operating cost inflation of 2.5%. Action plans contributed 22 basis points to the adjusted EBITA margin, aided by record productivity levels. Free cash flow before interest and tax surged 94.5% to €247m, resulting in a conversion rate of 37%. However, net debt increased by €690m to €3,322m as of June 30, 2026, driven by M&A activity and working capital requirements.

What the Numbers Show

A key analytical observation is the divergence between gross margin pressure and overall EBITA expansion. While gross margin faced a 5-basis point impact from unfavorable product mix and competitive environments, the company successfully offset this through significant operational efficiency gains. The 22-basis point contribution from action plans, including productivity improvements where sales volume growth outpaced headcount changes, demonstrates that Rexel is decoupling cost growth from revenue growth. This operational discipline is critical given that digital sales now represent 35% of total group sales, indicating a structural shift in distribution channels that requires sustained investment.

Strategic Acquisitions and Outlook

Rexel completed three strategic acquisitions in North America during the period: TC 360 in Canada, Revere Electrical Supply in the US, and DEE Electronics. These deals reinforce its industrial automation and advanced services capabilities. Looking ahead, Rexel raised its 2026 outlook to expect same-day sales growth of around 5% (previously 3-5%) and a current adjusted EBITA margin of at least 6.2%. The company reaffirmed its medium-term ambitions under the Axelerate 2028 plan, targeting sales growth potential of 5-8% and an adjusted EBITA margin above 7%.