RS Group reports first-half results ahead of expectations

RS Group reported first-half fiscal 2027 results on Thursday that exceeded market expectations, with sales growth across all regions and improved profit margins.

The company posted group sales of £1,544 million for the six-month period, representing 7% growth in organic constant currency terms and 10% on a reported basis. This figure came in 4% above consensus estimates.

Earnings before interest, tax and amortization reached £142 million, up 15% year-over-year in organic constant currency terms and 4% ahead of consensus. EBITA margins improved by 50 basis points to 9.2%. Profit before tax of £133 million and earnings per share of 20.9 pence each came in 5% above analyst expectations.

The EMEA division generated sales of £946 million, up 5% in organic constant currency terms, with all major markets returning to growth and volumes increasing 3% year-over-year. EBITA for the region rose 12% to £98 million, with margins expanding 40 basis points to 10.4%.

Americas sales reached £468 million, climbing 9% in organic constant currency terms on strong volume growth. The core Americas business excluding RSIS grew 12% year-over-year. Regional EBITA jumped 25% to £44 million, with margins expanding 120 basis points to 9.4%.

The APAC region posted sales of £130 million, up 15% in organic constant currency terms, driven by 12% volume growth. EBITA more than doubled to £8 million, with margins improving 320 basis points to 6.2%.

Net debt stood at £369 million, resulting in a net debt to EBITDA ratio of 1.1 times, compared to 1.0 times at the end of fiscal 2026.

The company maintained its full-year fiscal 2027 guidance, stating it remains well positioned to execute its strategic investment program and capture growth opportunities. Management noted that trading momentum remains encouraging but acknowledged geopolitical uncertainty and tougher comparisons in the second half of the fiscal year.