RS Group (LON:RS1) Issues Quarterly Earnings Results

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

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 RS Group stock opened at GBX 686 on Wednesday. The company has a current ratio of 1.94, a quick ratio of 1.24 and a debt-to-equity ratio of 39.74. The firm has a market capitalization of £3.21 billion, a P/E ratio of 20.30, a P/E/G ratio of 1.85 and a beta of 0.80. The business has a fifty day simple moving average of GBX 597.51 and a two-hundred day simple moving average of GBX 622.33. RS Group has a 12 month low of GBX 536.90 and a 12 month high of GBX 821.71.

Analyst Ratings Changes

Several analysts recently weighed in on RS1 shares. Royal Bank Of Canada cut their price target on shares of RS Group from GBX 810 to GBX 770 and set an “outperform” rating on the stock in a report on Monday, March 30th. 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 700 price target on shares of RS Group in a report on Thursday, March 26th. Five equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target 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.