DCC (DCC) H1 2025 earnings summary

Executive summary

• Announced a strategic plan to focus exclusively on the energy business, divesting healthcare by 2025 and reviewing technology within 24 months, aiming to simplify operations and maximize shareholder value.

• H1 FY25 adjusted operating profit rose 4.7% to £259.3m (6% constant currency), with organic growth of 0.5% and M&A contributing 5.5%.

• Surplus cash from divestments will be returned to shareholders, with ongoing consultation on the best method.

• Committed £130m to M&A, mainly in energy, and launched new offerings in solar and HVO.

• Free cash flow for the period was a deficit of £15.8m, reflecting seasonal working capital outflow.

Financial highlights

• Revenue for H1 FY25 was £9.3bn, down 3% (1.8% constant currency); adjusted EPS up 6.2% (7.5% constant currency) to 158.5p; interim dividend increased 5% to 66.19p.

• DCC Energy profits up 7% to £182.7m (8.4% constant currency); Healthcare and Technology each at £38m, flat year-over-year.

• Net debt (excluding lease creditors) at £1,092.1m; including lease creditors, £1,446.7m.

• Group adjusted operating margin: 2.8%; DCC Energy: 2.57ppl; Healthcare: 9.2%; Technology: 1.7%.

• FX translation was a 1.3% headwind in H1; expected to be over 2% for the full year.

Outlook and guidance

• FY25 expected to deliver good operating profit growth and significant strategic progress despite currency headwinds.

• Energy division guidance to double profits by 2030 from FY22 baseline, with 10% average annual profit growth and mid- to high-teens returns on capital employed.

• Net finance costs projected at £105–110m; effective tax rate ~20.5%.