DCC (DCC) H2 2025 earnings summary

Executive summary

• Sale of DCC Healthcare for GBP 1.05 billion, with GBP 800 million to be returned to shareholders, representing 16% of market cap.

• Strategic focus shifted solely to energy, with divestment of healthcare and ongoing review and streamlining of technology operations.

• Strong profit growth in Energy, with 8.5% constant currency operating profit increase and high returns on capital.

• Leadership changes implemented to support the new single-sector energy strategy.

Financial highlights

• Revenue from continuing activities was GBP 18 billion, down 4.5% year-over-year due to lower wholesale energy costs.

• Group adjusted operating profit (continuing) rose 4.8% to GBP 617.5 million (constant currency).

• Total group adjusted operating profit (including healthcare) was GBP 703.6 million, up 4.9% (constant currency).

• Adjusted EPS increased 5.2% (constant currency) to 470.2p; dividend per share up 5% to GBP 206.4.

• Free cash flow conversion was 84% for the year, with a two-year average of 92%.

• Net debt to EBITDA at year-end was 0.9x, expected to decrease to 0.7x post-capital return, assuming no further acquisitions.

Outlook and guidance

• FY26 expected to deliver good operating profit growth, strategic progress, and continued development.

• Ambition to double profits by 2030 remains on track, with confidence in achieving GBP 830 million EBITDA target.

• Organic profit growth targeted at 3%-4% per annum, with 6%-8% growth from M&A.

• Effective tax rate for FY26 expected at 20.5%; net finance costs c.GBP 100 million.