Inchcape (INCH) Q4 2025 earnings summary

Executive summary

• Delivered strong FY 2025 results despite tariff disruptions and economic uncertainty, with record PBT in Americas and Europe & Africa, and improved H2 in APAC.

• Continued execution of Accelerate Plus strategy, winning new distribution contracts and completing an acquisition in Iceland.

• Returned GBP 340 million to shareholders via dividends and buybacks; EPS and DPS grew 13%.

• Employee engagement rose to 81%, up 4 points, reflecting a high-performance culture.

• Free cash flow of GBP 315 million, supporting growth, shareholder returns, and M&A.

Financial highlights

• Revenue reached GBP 9.1 billion, with 1% organic growth and 6.2% operating margin.

• Adjusted PBT was GBP 443 million, up 3% in constant currency; adjusted EPS up 13% to 80.8p.

• Free cash flow conversion at 104% of adjusted profit after tax.

• Return on capital employed at 29%.

• Final dividend per share of 22.8p, total DPS up 13% to 32.3p.

Outlook and guidance

• FY 2026 expected to be a year of growth, with organic volume growth at the lower end of the 3%-5% medium-term guidance.

• Resilient operating margins of ~6% anticipated, supported by aftersales, F&I, and cost actions, with H2-weighted performance.

• Free cash flow conversion of ~100% and EPS growth >10% targeted.

• Continued momentum in Americas and Europe & Africa, with management actions addressing APAC challenges.

• Medium-term targets reiterated: >10% EPS CAGR to 2030 and GBP 2.5 billion free cash flow by 2030.