Electrical products distributor Rexel Q3 sales up on US data center demand, lifts 2026 outlook

Rexel SA

Yesterday 16:55

Overview
France-based electrical distributor's Q3 sales grew 11.4% on a same-day basis, highest since 2022
Company raised full-year 2026 guidance for sales growth and adjusted EBITA margin
Company agreed to acquire GCG in US, its largest deal in over 15 years

Outlook
Rexel raises 2026 same-day sales growth outlook to c.7% from c.5% previously
Company now targets at least 6.4% current adjusted EBITA margin for 2026, up from 6.2%
Rexel expects 2026 free cash flow conversion above 65%, unchanged from prior guidance

Result Drivers
US DATA CENTERS - Co said triple-digit growth in US data center segment contributed significantly to Q3 sales
INDUSTRIAL AUTOMATION - Co said industrial automation projects in North America boosted sales
SELLING PRICE INCREASES - Co said higher prices for cable and non-cable products supported sales growth

Company press release: ID:nGNE8S1x1S

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
 
EUR 5.45 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Rexel SA is €43.00, about 31.4% above its October 21 closing price of €32.72
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
Oct 22 - Rexel raises outlook again as US data-centre demand, European electrification drive growth
Oct 22 - Cable capacity emerges as bottleneck for AI data centres, Nexans says
Oct 22 - Nexans sales rise on grid, data-centre demand; confirms outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)