Inchcape has announced its FY2025 results, including the Group’s delivery against key metrics, +13% earnings per share (EPS) growth and a new £175m share buyback programme.
Delivery in FY 2025, against our medium term targets:
- Inchcape volumes* up 3%, driven by market share gains in multiple markets and distribution contract wins
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1% organic revenue growth to £9.1 billion, with improved momentum in H2; and reported revenue down (2)% due to impact of translational currency headwinds:
- Positive momentum building in the Americas, with supportive market conditions
- Australia resilient, management actions to address challenges in Asia
- Continued market outperformance in Europe and Africa
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Resilient 6.2% operating margins², adjusted PBT² of £443m, reported PBT of £406m, and capital allocation driving adjusted basic EPS growth of +13%
- Divestment of non-core assets contributed c.£17m to adjusted PBT² in FY 2025
Strong free cash flow conversion and robust balance sheet enables another year of significant shareholder returns:
- Cash generative and capital-light business model delivers free cashflow conversion² of 104% to adjusted PAT (FY 2024: 151%), free cash flow² of £315m and strong ROCE² of 29%
- Robust balance sheet maintained - leverage of 0.4x net debt/EBITDA, with capacity to continue our disciplined approach to capital allocation
- £250m buyback programme completed on 2 March 2026, acquiring approximately 9% of the company’s equity
- Full year DPS up 13% to 32.3p, in-line with dividend policy of 40% basic adjusted EPS² payout ratio
- Disciplined approach to capital allocation continues with announcement today of new £175m buyback programme
Further execution against Accelerate+ strategy:
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Scaling efficiently, with 10 contract wins, as well as value-accretive acquisition in Iceland
- Contract wins include GAC AION in Greece, Iveco in Hong Kong and XPENG in Colombia; contract exits include Geely in three small Americas markets
- Renewal of financially immaterial BYD Belux contract not anticipated, as BYD continues to in-source distribution in medium to large scale markets in Europe
- Continued optimisation of our business, with actions on cost reduction, capital recycling, contract portfolio optimisation, enhanced OEM collaboration and strong focus on cash generation
A year of growth in FY 2026**, in line with our medium term guidance:
- Organic volume growth towards the lower end of our 3% - 5% guidance range, with H2-weighted performance
- Resilient operating margins of c.6%, free cashflow conversion of c.100% and EPS growth of >10%
For more information, please visit the dedicated results page or download the full RNS.
*New vehicle registrations
**At constant currency
2Organic growth is defined as revenue growth in operations that have been open for at least a year at constant foreign exchange rates. See Note 12 APMs
"During a transformative year in the automotive sector in FY 2025, Inchcape’s diversified and scaled business model delivered results in line with our medium-term targets, reporting double-digit EPS growth. Our performance in 2025 was driven by good momentum in our Americas and Europe and Africa regions and we are taking actions to address challenges in APAC."
Group Chief Executive
"We made further strategic progress during the year, winning 10 new distribution contracts. In addition, we executed a value-accretive bolt-on acquisition in Iceland, a new market for Inchcape, enabled by our highly cash generative business model and strong balance sheet. We have a healthy pipeline of bolt-on acquisitions to help us access future growth. We also continue to deliver value for shareholders, with most of our £250m share buyback programme executed last year, and a new £175m programme for 2026, announced today."
Group Chief Executive
"Looking ahead, we expect to deliver a year of growth in FY 2026, including adjusted EPS growth of >10%, with volume growth, resilient margins, supported by strong execution and discipline on costs, and cash conversion."
Group Chief Executive