RS Group (LON:RS1) Announces Quarterly Earnings Results

RS Group (LON:RS1) announced its quarterly earnings results on Wednesday. The company reported GBX 38.70 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 Trading Up 14.4%

Shares of RS Group stock opened at GBX 687 on Wednesday. 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 quick ratio of 1.24 and a current ratio of 1.94. The company has a market capitalization of £3.22 billion, a P/E ratio of 20.33, a PEG ratio of 1.85 and a beta of 0.80. The company’s fifty day moving average is GBX 597.51 and its two-hundred day moving average is GBX 622.33.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Stifel Nicolaus reissued a “buy” rating and set a GBX 700 price objective on shares of RS Group in a research report on Thursday, March 26th. Royal Bank Of Canada lowered their price objective on shares of RS Group from GBX 810 to GBX 770 and set an “outperform” rating on the stock in a research report on Monday, March 30th. Finally, UBS Group reissued a “neutral” rating and set a GBX 620 price objective on shares of RS Group in a research report on Monday. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, RS Group has a consensus rating of “Moderate Buy” and an average target price of GBX 693.33.

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.