Rexel Q2’26: Volumes accelerate underwriting guidance upgrade; but some caution on margin upside

Research evidence excerpt

Rexel Q2’26: Volumes accelerate underwriting guidance upgrade; but some caution on margin upside

ions outside key growth verticals remain relatively subdued. Mgmt acknowledged that underlying end-

market demand remains mixed, particularly outside data centers and industrial automation. In the US, volumes excluding

these growth areas would likely be slightly negative, while expectations for a broader European economic recovery have

become more cautious versus assumptions embedded at the start of the year.

4. Margin progression should moderate in H2 despite normal seasonal tailwinds. While management acknowledged

that H2 margins are typically higher than H1, it cautioned that gross margin pressure from mix, ongoing Opex inflation and

lower carryover benefits from prior cost actions may limit the usual seasonal uplift. Pricing and inflation dynamics are now

expected to be broadly neutral through the remainder of the year.

5. Germany and the UK turnaround programs are delivering tangible profitability improvements. Mgmt highlighted

triple-digit basis-point profitability improvements in both countries, describing performance as broadly in line with

plan. While management stopped short of declaring victory, it noted that turnaround initiatives are already contributing

meaningfully to European margin improvement.

6. Large data center projects are slightly dilutive, but remain highly attractive. Mgmt acknowledged that hyperscale

projects generally carry somewhat lower gross margins than the broader portfolio. However, disciplined project selection,

operational efficiencies and associated service opportunities allow Rexel to largely offset the dilution at the EBITA level

while strengthening strategic customer relationships.

7.