RS Group (LON:RS1) Releases Earnings Results

RS Group (LON:RS1) released its earnings results on Wednesday. The company reported GBX 38.70 earnings per share 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 company 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 Stock Performance

Shares of LON RS1 opened at GBX 680.50 on Friday. The company has a debt-to-equity ratio of 39.74, a quick ratio of 1.24 and a current ratio of 1.94. The company has a market cap of £3.19 billion, a P/E ratio of 20.13, a P/E/G ratio of 1.85 and a beta of 1.35. The firm’s fifty day moving average is GBX 599.17 and its two-hundred day moving average is GBX 624.16. RS Group has a 52-week low of GBX 536.90 and a 52-week high of GBX 821.71.

Analyst Ratings Changes

A number of research firms recently weighed in on RS1. Jefferies Financial Group restated a “buy” rating and set a GBX 700 target price on shares of RS Group in a research note on Thursday. Royal Bank Of Canada lifted their price target on shares of RS Group from GBX 770 to GBX 780 and gave the company an “outperform” rating in a report on Thursday. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a GBX 700 price target on shares of RS Group in a report on Thursday. UBS Group reiterated a “neutral” rating and issued a GBX 620 price target on shares of RS Group in a report on Monday. Finally, Stifel Nicolaus reiterated a “buy” rating and issued a GBX 675 price target on shares of RS Group in a report on Wednesday. Five analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of GBX 692.14.

RS Group announced that its Board of Directors has initiated a share repurchase plan on Wednesday, May 20th that authorizes the company to repurchase 0 outstanding shares. This repurchase authorization authorizes the company to purchase shares of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

RS Group Company Profile

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.