DCC (+) : FY’26: Off the call - Confident message, some pull forward, but structural unit margin growth

Research evidence excerpt

DCC (+) : FY’26: Off the call - Confident message, some pull forward, but structural unit margin growth

EQUITIES

BUSINESS SERVICES

DCC OUTPERFORMPRICE* 5,950p  TARGET PRICE 6,000p (UPSIDE 1%)

FLASH NOTE

FY’26: Off the call – Confident message, some pull forward, but structural

unit margin growth

19 MAY 2026 Securities Research Report Production time: 10:15* (London time)

Research Analyst & Publishing Entities

Thomas Burlton BNP Paribas London Branch (+44) 203 430 8679 thomas.burlton@uk.bnpparibas.com

BNPP View:

A confident tone from the management team, however minimal incremental detail to move the shares given the

limitations on FY27 guidance (takeover code rules).

Importantly, management did clarify that pull-forward (primarily in the Energy Products business) was worth mid-to-high

single digit profit contribution in the year. Importantly, the strong unit margin performance (+11% y/y in both Products &

Mobility) was confirmed as structural rather than a pull forward effect.

Shares are +0.6% at the time of writing and near-term we expect the shares to be driven more by the next move of the

PE consortium (ECP/KKR) and any other potential forthcoming competing bids between now and the PUSU on the 10th

of June.

Our TP remains at £60/share, and we note this does not include any premium for control or strategic integration of the

component parts of the business (which may be significant).

Key takeaways from the call:

- Four key messages: 1. DCC’s history of delivering good performance in periods of transformation and volatility,

2. good opportunities in Energy and on track to deliver 2030 objectives, 3. Significant runway of growth in new and

existing markets, 4. confident on building DCC as a multi-energy service provider and generating superior returns

for shareholders