Inchcape (INCH) H1 2025 earnings summary

Executive summary

• Delivered robust H1 2025 results amid mixed global market conditions, with sequential organic revenue improvement and strong operational execution.

• Continued execution of Accelerate+ strategy, including new distribution contracts and the Askja acquisition in Iceland, further diversifying the business.

• Shareholder returns reached £220m, with a 10% share count reduction via buybacks over the last 12 months.

• Maintained a strong balance sheet and reiterated FY 2025 guidance, expecting stronger H2 growth from product launches and management actions.

• Statutory profit before tax decreased 5% to £186m; total profit remained flat at £129m.

Financial highlights

• H1 2025 revenue was £4.3bn, down 4% in constant currency and 3% organically year-over-year.

• Adjusted operating profit fell 12% in constant currency to £247m, with margin at 5.7% (down 50–60bps year-over-year).

• Adjusted basic EPS rose 2% to 35.5p, supported by share buybacks.

• Free cash flow was £72m, down from £226m in H1 2024, impacted by working capital outflow.

• Net debt increased to £374m, with leverage at 0.6x EBITDA.

Outlook and guidance

• FY 2025 guidance reiterated: another year of growth expected, with stronger H2 performance from product launches and easing comparators.

• Operating margins expected to remain around 6%, with PAT to free cash flow conversion at approximately 100%.

• Effective tax rate for 2025 anticipated at 29.5%–31%.

• Targeting >10% EPS CAGR over the medium term, supported by resilient margins and disciplined capital allocation.