Inchcape (INCH) Q3 2025 TU earnings summary

Executive summary

• Q3 performance was driven by organic revenue growth, new distribution contracts, and product launches, with ongoing challenges in Asia.

• Strategic execution included the acquisition of Askja/Askyr in Iceland and the disposal of a non-core retail business in Australia.

• Continued optimization of the distribution contract portfolio, including exits from several small Americas contracts.

• Disciplined capital allocation was maintained, with an ongoing share buyback and a robust M&A pipeline.

Financial highlights

• Group revenue for Q3 was GBP 2.3 billion, up 7% in constant currency and on a reported basis.

• Organic revenue growth reached 8%, with contract wins contributing about one-third of this growth.

• Volumes increased 13% to approximately 91,000 cars, outperforming market growth of 5%.

• Americas and Europe & Africa regions outperformed their respective markets; APAC showed improvement over H1.

Outlook and guidance

• FY 2025 guidance reiterated, expecting another year of growth at prevailing currency rates, including tariff impacts.

• Anticipates a stronger second half versus the first, with product launches and ongoing cost, inventory, and working capital management supporting performance.

• Targeting EPS CAGR of more than 10% over the medium term, with EPS growth expected to outpace profit growth.