RS Group PLC(MX:RS1N)
MX:RS1N
RS Group PLC earnings date
RS Group PLC (RS1N) Q2 2027 Earnings Report
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MX:RS1N Q2 2027 EPS Results
- Actual EPS
- MXN 5.16
- Consensus EPS
- MXN 5.02
- Beat/Miss
- Beat by +MXN 0.15
- One Year Ago EPS
- MXN 4.37
MX:RS1N Q2 2027 Revenue Results
- Actual Revenue
- MXN 38.34B
- Expected Revenue
- MXN 37.02B
- Beat/Miss
- Beat by +MXN 1.32B
- YoY Revenue Growth
- +10.09%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 11/05/2026
- Time
- Before Open
- Conference Call
- Thursday, November 5, 2026
MX:RS1N Upcoming Earnings
RS Group PLC's next earnings date is estimated for May 25, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with broad-based revenue growth, improving margins, strong cash generation, regional outperformance, market recovery and progress on digital, AI and operational initiatives. The main challenges were cost inflation, delayed operating-leverage benefits, softer Australia and New Zealand conditions, slower growth in some strategic accelerators and more difficult second-half comparators.
Company Guidance
For H2 '26-'27, gross margin is expected to be stable; variable and semi-variable costs are expected to be consistent with H1 levels at around 14% of revenue, representing 43% of the ongoing run cost base, while fixed costs are expected to grow by 7% versus the prior period, net of cost savings, and represent 57% of the ongoing run cost base. The guidance given with the full year results in May holds for organic investment, which will accelerate in H2, as well as restructuring and integration costs and capital expenditure. In '28, the 43% to 57% ratio split remains the focus, with depreciation currently running at around GBP 40 million versus CapEx at GBP 50 million for a few years, and depreciation expected to catch up. The step change in process efficiency is expected to take around 3 years to deliver, with benefits weighted to the back of that period, while the replatforming work accelerates over the next 3-year period and the real step change is expected post that rollout; the mid-teens margin is predicated on getting operating leverage into what the organization is capable of.
- Strong First-Half Group PerformanceRS returned to growth, with revenue up 10% and like-for-like revenue up 7%. Adjusted profit before tax increased 17%, supported by building quarter-on-quarter momentum and outperformance across all regions.
- Operating Margin ExpansionLike-for-like operating profit margin increased by 70 basis points to 9.2%. On a comparable basis, operating margin improved by 100 basis points, with gross margin expansion contributing approximately 70 basis points and operating leverage contributing 130 basis points.
- Broad-Based Market RecoveryPMIs generally continued to strengthen and remained in expansion territory across all major markets. Management said the recovery was broad-based across most industry verticals, with particular structural growth drivers in new energy, pharma and data-center suppliers.
- Strong Cash Generation and ReturnsAdjusted operating cash flow conversion was 96%, return on capital employed increased to 16.5%, and adjusted free cash flow rose to GBP 93 million from GBP 86 million. The interim dividend increased by 2%, and RS repurchased GBP 35 million of shares during the period.
- Balance Sheet FlexibilityLeverage remained at 1.1x net debt to EBITDA, described as the lower end of the target range, providing flexibility for organic investment and potential value-accretive M&A. The company said it has a healthy M&A pipeline and a strong balance sheet.
- Revenue Growth DriversLike-for-like growth comprised approximately 4 percentage points from volume and 3 percentage points from pricing. Inorganic investments contributed GBP 33 million of revenue, while average order value increased 10% to GBP 293.
- Growth in Digital, Services and RS PRODigital revenue increased 5%, Services and Solutions grew 6% on a like-for-like basis, and RS PRO grew 5% on a like-for-like basis. Growth was supported by continued expansion in strategic procurement solutions and investments in customer-facing digital capabilities.
- EMEA Return to GrowthEMEA like-for-like revenue increased 5%, with momentum accelerating through the half as market conditions improved. High-potential corporate customers grew 9% like-for-like, digital revenue increased 5%, RS PRO grew 4%, and operating margin improved to 10.4%.
- Americas Performance and ProfitabilityAmericas revenue increased 9%, while U.S. and Canada revenue grew 12% on a like-for-like basis. Web revenue rose 13%, RS PRO grew 30% from a low base, gross margin increased 110 basis points, operating profit rose 25% to GBP 44 million, and operating margin improved by 120 basis points to 9.4%.
- Asia Pacific OutperformanceAsia Pacific revenue increased 15%, driven primarily by 12% volume growth. Digital revenue rose 12%, RS PRO increased 16% on a like-for-like basis, and operating profit more than doubled as operating margin improved to 6.2%. Momentum benefited from continued AI-infrastructure and data-center expansion across the region.
- Mexico Recovery and Order MomentumMexico delivered 9% growth, with recovery accelerating during the period. Larger capital projects that had been deferred amid trade-related uncertainty increasingly moved into execution, and management said Mexico's book-to-bill looked good going into the third and fourth quarters.
- Working Capital and Inventory DisciplineWorking capital remained around 24% of revenue, inventory turns were maintained at 2.7x, and management said stock levels were being controlled while supporting customer demand. Additional working-capital investment supported growth while adjusted operating cash flow conversion remained 96%.
- Cost Savings DeliveryRS delivered GBP 64 million of recurring restructuring and integration benefits, with a net cost to deliver of GBP 21 million. Restructuring and integration benefits of GBP 8 million in the first half more than covered the costs required to deliver them.
- Customer Data, Automation and AI ProgressRS connected its customer platforms at the beginning of the second quarter, launched 12 automated sales campaigns and its first supplier-sponsored campaign, and began using AI to process data, identify opportunities and improve personalization. Management said these capabilities are supporting customer acquisition, share of wallet and commercial decision-making.
- Digital Commerce and Search InvestmentsAI is being used to improve product discovery, traditional search and conversational search. RS created four localized SEO hubs, continued tuning its upgraded U.S. digital commerce engine, and said the next version is in live testing and ready for launch in Switzerland in the first quarter of next year.
- Services and Procurement ExpansionEProc revenue increased 8% on a like-for-like basis. RS rolled out the upgraded PurchasingManager platform across Europe, plans deployments across APAC and the Americas, launched a SaaS-based eProcurement model in Mexico, and continued enhancing the RS Sync inventory and procurement platform with AI-enabled parts identification and improved multisite inventory visibility.
- Distribution and Operational Infrastructure ProgressRS made progress upgrading distribution centers in Ireland and Italy, with transitions to new sites expected in the second half. The new sites are intended to provide safer and more efficient working environments and additional EMEA capacity. RS also developed a next-generation automation and warehouse-management approach in Italy.
- Data-Center Exposure IncreasingData-center-related activity represented approximately 6% or 7% of group revenue, up from 3% or 4% last year. Growth is coming mainly through panel builders and small electronics-related projects, with management also noting future MRO opportunities once data centers are built.
- Share Gains Contributing to Volume GrowthManagement estimated that, after excluding approximately 1% of underlying growth from operational catch-up, the remaining 6% broadly divided into approximately 3% pricing and 3% volume. About half of the volume growth was characterized as market growth and about half as share gain.
- Second-Half Investment and Cost OutlookGross margin is expected to be stable. Variable and semi-variable costs are expected to remain around 14% of revenue, fixed costs are expected to grow 7% in the second half versus the prior period net of cost savings, and organic investment is expected to accelerate in the second half.
MX:RS1N Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| May 25, 2027 | 2027 (Q4) | 5.74- | 5.21 | ― | ― |
| Nov 05, 2026 | 2027 (Q2) | 5.025.16 | 4.37 | 18.18% (+0.79) | |
| May 20, 2026 | 2026 (Q4) | 5.075.21 | 3.95 | 32.08% (+1.27) | |
| Nov 06, 2025 | 2026 (Q2) | 4.474.37 | 4.64 | -5.88% (-0.27) | |
| May 21, 2025 | 2025 (Q4) | 5.113.95 | 5.21 | -24.29% (-1.27) | |
| Nov 07, 2024 | 2025 (Q2) | 4.124.64 | 5.54 | -16.14% (-0.89) | |
| May 22, 2024 | 2024 (Q4) | 5.215.21 | 7.97 | -34.58% (-2.76) | |
| Nov 07, 2023 | 2024 (Q2) | 5.515.54 | 7.82 | -29.21% (-2.28) | |
| May 23, 2023 | 2023 (Q4) | ―7.97 | 6.8 | 17.15% (+1.17) | |
| Nov 03, 2022 | 2023 (Q2) | 5.587.82 | 5.66 | 38.16% (+2.16) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
