Rexel raises 2026 sales growth target to 7% after quarterly jump of 11.4%
Key Facts
Rexel posted sales of 5,452.9 million euros in the third quarter of 2026, up 14.6% on a reported basis and 11.4% on a constant and like-for-like working-day basis, and said the quarterly performance was its best since 2022. The group raised its annual sales growth forecast for the second time this year, targeting growth of about 7% on the same working-day basis, compared with about 5% previously. It also raised the lower end of its current adjusted EBITA margin forecast to 6.4% from 6.2%, and kept its expected free cash flow conversion above 65%. The forecast revision followed accelerating sales in the United States, where data centers contributed strongly among high-growth sectors. Chief Executive Guillaume Texier said the quarter was the company's best since 2022, citing strong demand in the United States and Rexel's exposure to data centers and other attractive sectors.
In the first nine months of 2026, sales reached 15,441.8 million euros, up 6.2% on a reported basis and 7.3% on a constant and like-for-like working-day basis. Third-quarter growth was stronger than the pace in the first half, which recorded sales of 9,989 million euros and growth of 5.1% on the same working-day basis. In the second quarter alone, sales were 5,252 million euros, up 6.7% on the same basis. These figures show an acceleration in the third quarter compared with the first half and the second quarter, alongside the company's higher annual estimates. For comparison, Rexel recorded annual sales of 19,414.6 million euros in 2025, with growth of 2.5% on the same working-day basis, while its current adjusted EBITA margin was 6.0%.
North America led the regions in the third quarter, with sales rising 17.4% on a like-for-like working-day basis, compared with 4.5% in Europe and 15.8% in Asia-Pacific. Rexel said accelerating sales were led by North America, particularly the United States, with a significant contribution from data centers, while positive trends continued in Europe, supported by the energy transition. According to the company's statement, U.S. data center sales grew by more than 100% and accounted for about 13% of its sales in the U.S. market during the quarter. Overall sales also benefited from accelerating activity volumes, which added 6.3 percentage points to growth. Higher prices for cable products contributed 2.9 percentage points, while prices for non-cable products added 2.2 percentage points.
Texier linked major customers' expansion in the sector to their focus on the U.S. market, telling Reuters that the largest investors, including hyperscalers, were building capacity mainly in their domestic U.S. markets. This places the data center growth reported by Rexel within a U.S. investment expansion that benefits the company through sales to high-growth sectors. At the end of September, North America's order backlog exceeded 3 billion dollars, up 42% compared with the end of 2025, and equivalent to 3.4 months of sales. The order backlog provides an additional indication of the volume of accumulated activity in the region, alongside the sales growth recorded in the quarter. The company said its presence in Europe was also benefiting from positive trends linked to the energy transition, although its growth there was slower than in North America in the third quarter.
Alongside its business growth, Rexel signed an agreement to acquire GCG in the United States, a separate expansion move from the sales growth it recorded in the third quarter. The company expects GCG's revenue to exceed 1.1 billion dollars in 2026, with more than 60% of its revenue coming from high-growth sectors. Reuters said the deal would add more than 1 billion euros in revenue and is expected to close by the end of 2026. Completion of the acquisition is subject to customary regulatory approvals and closing conditions. In trading, Rexel shares closed at 31.79 euros on October 22, 2026, compared with 32.72 euros in the previous session, according to EL7 data.