PARIS — Rexel published its First Quarter 2025 sales report.
Guillaume TEXIER, Chief Executive Officer, said: “The first quarter of 2025 had positive momentum, with solid growth in North America, Europe recovering sequentially and price effect improving, allowing us to post positive organic sales growth for the first time in one year. We are happy that we were able to deliver such a performance in an economic environment which remains globally soft and uncertain.
In this context, Rexel accelerated its strategic plan, gaining market share in key countries, implementing cost savings and margin actions, and being active and agile on capital allocation. All of Rexel’s employees are now fully mobilized around our Axelerate 2028 plan with the goal to enhance value to our customers and deliver on our midterm financial targets.
Even though the new and fast-evolving global tariffs environment creates a level of uncertainty, with both new challenges and new opportunities, we are confident in Rexel’s resilience and agility and confirm our guidance for 2025.”
→ Q1 25 sales of €4,825m, up +1.4% on a same-day basis, back to positive territory
- North America up +3.8% on a same-day basis, driven by good backlog execution of non-residential projects and better momentum in the Proximity business
- Europe down (0.7)% on a same-day basis, showing positive momentum in all countries following a (3.8)% decline in Q4 24
- Pricing contributed for 80bps to sales growth
→ Active portfolio management with one US acquisition and the disposal of our Finnish operations, prioritizing acquisitions in combination with targeted divestments designed to allocate resources to markets offering the highest value-creation potential for Rexel
→ Continued ramp-up of digital penetration rate, reaching 33% of sales in Q1 25, up +241bps
→ Execution of strategy presented at our June 2024 CMD and deployment of Axelerate 2028, focused on acceleration of operational excellence initiatives to secure mid-term ambitions
→ 2025 guidance confirmed, while continuing to closely monitor direct and indirect effects of tariffs on sales and profitability, particularly in North America
Sales review for the period ended March 31, 2025
Unless otherwise stated, all comments are on a constant and adjusted basis and, for sales, at same number of working days.
SALES
In Q1, sales were up +2.5% year-on-year on a reported basis and +1.4% on a constant and same-day basis
In the first quarter 2025, Rexel posted sales of €4,825m, up +2.5% on a reported basis. It includes:
- Constant and same-day sales growth of +1.4%, with a +0.6% contribution from volume, a (0.1)% selling-price effect on non-cable products and +0.9% on cable products
- A negative calendar effect of (1.8)%
- A positive net scope effect of +1.9%, mainly resulting from the acquisitions of Talley and Electrical Supplies Inc in the US, completed respectively in June and July 2024 as well as Itesa in France, completed in October 2024, offsetting the disposal of Rexel’s activity in New-Zealand
- A positive currency effect of +1.0%, mainly due to the appreciation of the US dollar against the euro
Sales were up +1.4% on a constant and same-day basis or down (0.4)% on a constant and actual-day basis. More specifically:
- The overall performance in Q1 25 was driven by North America with improving trends in Europe
- Business Accelerators represented 30% of sales (including 21% of electrification), broadly stable year-on-year and improving vs Q4 24. Growth in Datacom products was offset by declines in Industrial automation and Solar activities
- Pricing for non-cable products was close to stable at (0.1)%, with price increases across the majority of products countered by deflation in commodity-like products such as piping and conduits in North America, and to a lesser extent Solar products
- The Q1 cable price contribution was positive at +0.9%, supported by a year-on-year copper price increase
- Digital sales increased by +241bps and represented 33% of Group’s sales.
- Digital accounted for 44% of sales in Europe, up +184bps; 23% in North America, an increase of +112bps; and 29% in Asia-Pacific, vs 8% in Q1 24, thanks in particular to the adoption of Email to EDI in China
Europe (50% of Group sales): Slightly down (0.7)% in Q1 on a constant and same-day basis
In the first quarter, sales in Europe declined by (0.8)% on a reported basis, including:
- A constant and same-day sales evolution of (0.7)%
- A negative calendar effect of (1.2)%
- A positive scope effect of +0.9%, resulting from the acquisition of Itesa in France
- A slightly positive currency effect of +0.3%, mainly due to the appreciation of the British pound against the euro
More specifically:
- Europe was down (0.7)% on a same-day basis year-on-year, improving versus Q4 24, which was down (3.8)%. All three markets were in negative territory, with Industry showing the biggest decline
- Business Accelerators segments were flat year-on-year; growth in datacom and EV charging activities were offset by a decline in Solar products and industrial automation
Looking at trends by country and cluster, on a same-day basis:
- Sales in France stood at +0.5%, back to positive growth. The quarter showed strong resilience, with market share gains, and growth in non-residential and HVAC end-markets. The Industrial segment remains negative
- DACH region (Germany, Austria and Switzerland) was stable at +0.1%, with a better performance in all three countries compared to Q4 24
- Germany remains impacted by the unfavorable macro environment particularly affecting the non-residential segment and Solar activity
- Benelux decreased by (1.7)%
- First sign of recovery in non-residential; Industry and Solar still down
- Less favorable Dutch regulatory environment for HVAC/heat pumps and Solar markets
- The Nordics (Sweden and Finland) were stable in Q1
- The positive trend in Industry segments was balanced by lower demand in non-residential business with large contractors
- In the UK and in Ireland, sales were down (5.9)%, with good momentum in Ireland. The UK remained impacted by turnaround measures including branch closures completed in 2024 and increased selectivity on projects
North America (45% of Group sales): Strong sales growth of +3.8% in Q1 on a constant and same-day basis
In the first quarter, sales in North America were up by +7.8% on a reported basis, including:
- A strong constant and same-day sales growth of +3.8%
- A negative calendar effect of (2.7)%
- A positive scope effect of +4.6%, resulting from the acquisitions of Talley and Electrical Supplies Inc in the US
- A positive currency effect of +2.0%, mainly due to the appreciation of the US dollar against the euro
More specifically, in North America:
- Sales were up +3.8% on a same-day basis, driven by the projects business and improved activity in the Proximity business
- Business Accelerators were slightly negative; the strong demand in Datacom was offset by low demand in Industrial automation
Looking at trends on a same-day basis, in our two countries:
- In the US, same-day sales were up +4.0% in Q1 2025
- By business:
- Project activity continued to be driven by strong backlog execution boosted in particular by non-residential end-markets. Quotation activity remained good, as illustrated by the c.6% backlog increase at the end of March (vs December 2024)
- Proximity activity turned positive after seven quarters of decline
- By end-market:
- Growth was positive in all three markets (non-residential, Industry and residential). The Industrial automation sub-segment remained negative year-on-year but sequentially improved versus Q4 24
- Growth was supported by demand in datacenters and manufacturing
- Talley’s strong growth was led by datacom/telecom demand
- By region:
- Favorable momentum in Southeast region (incl. Mayer) and in the Northeast both boosted by datacenters and new manufacturing plants
- The impact from tariffs introduced mid-March was limited in Q1 25. We are closely monitoring effects including price increases on most product categories, which currently range from 4% to 20%.
- By business:
- In Canada, sales were up +2.9% on a same-day basis, still driven by Project activity mainly in the non-residential market, while the Proximity activity returned to positive territory. The quarter saw favorable momentum in distribution and datacom products in large and medium contractors. Prices contributed positively, and the backlog remained stable compared to end December 2024, thanks to a strong order intake.
Asia-Pacific (5% of Group sales): +1.4% in Q1 on a constant and same-day basis
In the first quarter, sales in Asia-Pacific decreased by (6.8)% on a reported basis, including:
- Constant and same-day sales growth of +1.4%
- A stable calendar effect of (0.2)%
- A negative scope effect of (7.8)%, resulting from the disposal of Rexel’s activities in New Zealand
- A stable currency effect of (0.1)%
In Asia-Pacific, sales increased by +1.4% on a constant and same-day basis thanks to China.
Looking at trends on a same-day basis in our main countries:
- In Australia, sales decreased by (0.7)%, similar to Q4 24 but impacted by Cyclone Alfred in March. The overall business was supported by industrial market, particularly mining and manufacturing
- In China, sales increased by +7.5%, boosted by customers gains particularly in distribution and chemical markets. Industrial automation selling prices returned to positive territory
Active portfolio management
Rexel actively managed its portfolio with one acquisition and one disposal, prioritizing acquisitions in combination with targeted divestments designed to allocate resources to markets offering the highest value creation potential:
- On April 1st, Rexel announced the acquisition of Schwing Electrical Supply ($70m sales) in the US, reinforcing our footprint in the Northeast
- Founded in 1960 by Charles Schwing, the company operates six locations and employs around 100 people
- Rexel USA intends to operate under the Schwing Electrical Supply banner, fully leveraging the strength of the established brand and workforce
- On April 22nd, Rexel announced the agreement to sell its Finnish operations to Ahlsell, a Nordic regional distributor of installation products, tools and supplies. With some 300 employees, Rexel’s Finland operations generated sales of €254 million in 2024
- The sale is fully in line with the Group’s active portfolio management strategy
- Operations were well run, but operating subscale at a lower profitability than Europe’s average
- The completion of the transaction remains subject to customary regulatory clearance including the approval of the competition authority
Outlook
Rexel confirms its FY 25 guidance, in an uncertain environment, while continuing to closely monitor direct and indirect effects of tariffs on sales and profitability, particularly in North America.
Rexel’s expectations for full-year 2025 are as follows:
- Stable to slightly positive same-day sales growth
- Current adjusted EBITA margin1 at c. 6%
- Free cash flow conversion2 at c. 65%, excluding the €124m fine from the French Competition Authority, paid in April 2025