RS Group plc (LSE:RS1) shares rose more than 8% after the industrial and electronics distributor reported full-year results for the period ended 31 March that came in slightly ahead of analyst expectations and announced a new £100 million share buyback programme.
Revenue for the year reached £2.88 billion, narrowly surpassing company-compiled analyst forecasts of £2.87 billion. Adjusted operating profit totalled £265 million, also ahead of consensus expectations, while adjusted basic earnings per share came in at 38.7 pence.
The board proposed a final dividend of 14.2 pence per share, taking the full-year payout to 22.9 pence, representing a 2% increase on the prior year. The newly announced share repurchase programme will be executed over the next 12 months.
Operational improvements and cash generation
Chief executive Simon Pryce said the company continued to make progress against its long-term transformation strategy.
“2025/26 was another year of strong execution of our multi-year plan to improve the business and deliver on the significant value creation opportunity at RS,” Pryce said.
“Better execution, cost discipline and cash focus also supported operating profit and cash conversion ahead of expectations.”
Net debt declined to £329 million from £364 million a year earlier, with net debt to adjusted EBITDA standing at 1x. Adjusted operating cash flow conversion reached 109%, comfortably above the company’s target level of 80%.
Gross margin improved by 0.6 percentage points to 43.4%, while adjusted operating margin slipped slightly to 9.2% from 9.4% the previous year. Adjusted profit before tax was £246 million compared with £248 million in 2024/25.
Regional performance and strategic progress
Across regions, EMEA generated revenue of £1.80 billion with an adjusted operating margin of 10.9%, down from 11.3% a year earlier, while like-for-like revenue declined 1%.
The Americas division delivered revenue of £855 million and maintained a 9% adjusted operating margin, with like-for-like sales down 2%.
Asia Pacific reported revenue of £223 million, with like-for-like growth of 5% and adjusted operating margin improving to 3% from 2.8%.
RS PRO, the group’s own-brand product range, recorded 5% like-for-like growth to £415 million. Revenue from services and solutions increased to £787 million from £742 million, while digital revenue totalled £1.73 billion, down 1% on a like-for-like basis.
The integration of Distrelec Group AG generated more than £40 million in cost savings, ahead of internal targets.
RS Group also completed the acquisition of BPX Group in March 2026 for an enterprise value of £27 million on a cash-free, debt-free basis, with a further earn-out of up to £3 million possible. Return on capital employed improved to 15.4% from 15.2%.
Analyst reaction and outlook
Analysts at Stifel Financial Corp. said:
“We are Buyers, and view the current valuation (FY27E P/E of 14.6x) as relatively undemanding, and believe progress on internal initiatives should ensure the group is well-placed to drive operating leverage as volumes improve.”
Looking ahead, Pryce said the company is seeing stronger momentum entering the new financial year.
“We see improving momentum into 2026/27 and most of our major markets are now back into low single digit growth,” he said.
More about RS Group
RS Group plc is a global distributor of industrial, electronic and maintenance products and solutions, serving customers across manufacturing, automation, infrastructure and technology sectors. The company operates through a combination of product distribution, digital commerce and value-added services, with a broad international footprint spanning EMEA, the Americas and Asia Pacific.
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