3i Group plc (LSE:III) reported another strong quarter, with net asset value per share rising to 3,017p at 31 December 2025 and a total return of 20% generated over the first nine months of FY2026. Performance benefited from favourable currency movements, portfolio realisations and dividend income, leaving the group well positioned heading into the final quarter of its financial year.
The standout contributor was discount retailer Action, which delivered 16% net sales growth to €16bn in 2025 alongside a 14% increase in operating EBITDA to €2.37bn. Action opened a record 384 new stores during the year and continued to record resilient like-for-like sales growth, even as French consumer demand softened. During the period, 3i increased its ownership to 62.3% following a capital restructuring and subsequently agreed to acquire a further c.2.9% stake from GIC, to be settled through the issue of new 3i shares.
Elsewhere in the portfolio, 3i highlighted solid trading across several consumer and private label businesses, including Royal Sanders and Audley Travel. The group also completed the disposal of MAIT at a profit and benefited from a higher share price and dividend flows from its holding in 3i Infrastructure. As a result, 3i ended the period with £995m of gross cash and very low gearing of around 1%, which management said underpins strong momentum into the year end.
Overall, the group’s outlook is supported by strong financial performance and constructive management commentary. While technical indicators point to some caution due to broader market trends, valuation remains attractive and insider share purchases add confidence. Macroeconomic uncertainty and weaker conditions in certain end markets remain key risks to monitor.
More about 3i Group plc
3i Group plc is a UK-based investment company specialising in private equity and infrastructure, with a long-term focus on consumer-facing and private label businesses. Its largest investment is Action, a fast-growing European non-food discount retailer operating more than 3,300 stores across 14 countries. The wider portfolio includes companies such as Royal Sanders and Audley Travel, alongside a significant stake in 3i Infrastructure plc.
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