DCC plc (LSE:DCC) reported a modest decline in operating profit for the first quarter compared to last year, aligning with market expectations, as its energy division saw a small downturn while the technology segment remained steady.
In a pre-AGM trading statement, the FTSE 100 company noted that the first quarter is typically less significant, contributing roughly 15% to 20% of the full-year operating profit. Specific financial details for the quarter were not disclosed.
The company reaffirmed its full-year guidance through March 31, 2026, anticipating solid operating profit growth, continued strategic progress, and ongoing development efforts.
Jefferies analysts highlighted that this guidance aligns with consensus forecasts, which project an EBITA of £632 million for fiscal 2026, up from £618 million in the prior year.
DCC Energy, the group’s largest business unit, performed slightly below last year but met internal expectations, partly due to seasonal weather influences. DCC Technology’s results matched those of the previous year.
No mergers or acquisitions were completed during the quarter, though DCC emphasized an active pipeline of development opportunities.
The company also confirmed its intention to finalize the sale of its Healthcare division in Q2 fiscal 2026, subject to regulatory approval—a deal initially announced in April 2025.
DCC’s ongoing £100 million share buyback program, launched in late May, is now approximately one-third complete. Following the Healthcare sale, the company plans to return up to £600 million to shareholders.
Jefferies continues to anticipate the disposal of DCC’s Technology division during calendar year 2026, likely through multiple transactions, with proceeds expected to be distributed to investors.
Leadership changes were announced effective after the AGM: Kevin Lucey, CFO since 2020, will transition to COO, while Conor Murphy will take over as CFO and join the board as an executive director.
For the fiscal year ended March 31, DCC reported revenues of £18 billion and an adjusted operating profit of £617.5 million. The group has maintained a 13% compound annual growth rate in adjusted operating profit and has increased its dividend every year for 31 consecutive years as a listed company.
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