European Business Services "The Signal Service" McKenzie

Research evidence excerpt

European Business Services "The Signal Service" McKenzie

Global Research

10 June 2026ab

European Business Services Equities

Europe including UKThe Signal Service

Industrial Services

Rory McKenzie

Inchcape: Feedback from investor dinner Analyst

We hosted Inchcape's CEO, CFO, and IR for an investor dinner. The discussion covered a rory.mckenzie@ubs.com

broad scope of topics including; wider autos demand (inc. Middle East disruption, +44-20-7568 1977

Chinese OEMs, EV adoption), profitability levers (e.g. value-added services, contract Nicole Manion

ramp-ups), and broader elements of the mid-term strategy (e.g. ongoing brand portfolio Analyst

review, capital allocation and M&A targets). Management reiterated the messages from nicole.manion@ubs.com

the Q1 that it believed it was still showing good volume outperformance overall; but +44-20-7568 2094

individual markets/OEMs remained challenged, and given actions under way, profits Abi Bell

would be H2-weighted (similar to last year). We also had the opportunity to discuss new Analyst

contract ramp-up dynamics in more detail (which we believe is a key focus for investors), abi.bell@ubs.com

and the recent acquisition (see here). Our view: We continue to see Inchcape as a +44-20-7568 1594

resilient, value-added distributor that offers a cost-effective channel to grow share in Abdihakem Ahmed

niche markets for automotive OEMs. While auto markets are facing several challenges Associate Analyst

(Chinese competition, slowing demand, EV and SDC transitions) which may transmit to abdihakem.ahmed@ubs.com

supply chain partners, we believe this role offers some protection while we see internal +44-20-7567 1050

opportunities (e.g. value-added services) to offset any margin pressure. We forecast a