RS Group (LON:RS1) Releases Earnings Results

RS Group (LON:RS1) released its quarterly earnings data on Wednesday. The company reported GBX 38.70 earnings per share (EPS) for the quarter, Digital Look Earnings reports. RS Group had a net margin of 5.49% and a return on equity of 11.47%. The firm had revenue of GBX 288.11 billion for the quarter.

Here are the key takeaways from RS Group’s conference call:

• RS Group delivered a resilient FY2026 performance with revenue flat on a like-for-like basis after adjusting for FX and trading days, while pricing discipline helped keep operating margins stable despite slightly lower volumes.
• Momentum improved in the second half, with EMEA returning to growth and continued growth in North America and APAC; management highlighted better sentiment and performance into Q4 and signs of a potential tailwind from improving PMIs.
• Cash generation remained strong, with cash conversion at 109%, net debt down to GBP 329 million, and ROCE stable at 15%, supporting a 2% increase in the final dividend and a new GBP 100 million share buyback.
• Strategic investments are beginning to pay off, especially in customer data, digital commerce, product management, and supply chain efficiency, with RS PRO, solutions/services, and corporate customer growth all outperforming the wider group.
• Management expects further investment in FY2027 in technology, process harmonization, and operational excellence, while warning that cost inflation, Mexico-related headwinds, and ongoing macro/geopolitical uncertainty could pressure results even as the company targets higher medium-term growth and margins.

RS Group Price Performance

Shares of LON RS1 opened at GBX 662.50 on Thursday. RS Group has a 1 year low of GBX 536.90 and a 1 year high of GBX 821.71. The company has a debt-to-equity ratio of 39.74, a current ratio of 1.94 and a quick ratio of 1.24. The company’s 50-day moving average is GBX 598.56 and its 200 day moving average is GBX 623.26. The stock has a market capitalization of £3.10 billion, a P/E ratio of 19.60, a P/E/G ratio of 1.85 and a beta of 0.80.

RS Group declared that its board has approved a share repurchase plan on Wednesday, May 20th that allows the company to buyback 0 shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. Stifel Nicolaus restated a “buy” rating and issued a GBX 675 price objective on shares of RS Group in a research report on Wednesday. Royal Bank Of Canada lowered their price target on RS Group from GBX 810 to GBX 770 and set an “outperform” rating for the company in a research report on Monday, March 30th. Finally, UBS Group reaffirmed a “neutral” rating and set a GBX 620 price target on shares of RS Group in a research report on Monday. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of GBX 689.17.

About RS Group

RS Group plc is a global product and service solutions provider for industrial customers, enabling them to operate efficiently and sustainably.

We operate in 36 markets, stock over 800,000 technical and specialist products and list an additional five million relevant for our industrial customers, sourced from over 2,500 suppliers. This extensive range supports our customers across the industrial lifecycle of designing, building, and maintaining equipment and operations. We enhance their experience through a tailored service model, leveraging our efficient physical, digital and process infrastructure sustainably.