Quick Take: Ocado H126 results - a tough year

Research evidence excerpt

Quick Take: Ocado H126 results - a tough year

16 July 2026

William Woods

+44 20 7676 6806

European Food Retail william.woods@bernsteinsg.com

Ocado Group PLC Richard Trainor

+44 20 7762 1050

Rating richard.trainor@bernsteinsg.com

Underperform Alice Buckley

Price Target +44 20 7676 6739

alice.buckley@bernsteinsg.com

OCDO.LN 100.00 GBp

Rhea Gudiwala

+44 20 7676 7293

rhea.gudiwala@bernsteinsg.com

Ocado reported H1 results during a tough year due to the cancellation and closure of the

Close Date 15 Jul 2026

Kroger and Sobey’s CFCs. H1-26 shows little progress on new growth avenues and

OCDO.LN Close Price (GBp) 177.70

continued delays to the pipeline. Ex. one-inflows from the closures, technology

Price Target (GBp) 100.00

solutions revenue declined -8% and EBITDA declined -18%. Recurring technology

Upside/(Downside) (44)%

solutions business fees declined by -3%. The news on the pipeline is not overwhelmingly

52-Week Range 397.70/165.70

positive as Kroger’s Phoenix site has been pushed back from FY26/27 to FY27/28. Seoul

EDME 1,595.42

is pushed back to FY29 (from FY27/28). As a result, module growth guidance for FY27 has

FYE Nov

been cut from c. 10-15 to c. 10. This again is challenging given management’s previous

Div Yield NA

confidence that these sites would be opened. The total number of modules ordered at sites

Market Cap (GBP) (M) 1,499

in operation has fallen from 163 to 144, and modules ordered at sites under construction has

EV (GBp) (M) 2,546

fallen from 35 to 26 (although this is likely Charlotte & Sobeys, post-balance sheet events

for FY25). There is very limited commentary about the development of the store- Performance YTD 1M 6M 12M

based automation solution, which is supposed to be the next leg of growth for Ocado. FCF Absolute (%) (24.7) (7.6) (37.8) (24.2)