Strong headline financials and profitability
Revenue of GBP 9.1bn in FY2025; adjusted PBT of GBP 443m (up ~3% in constant currency); adjusted operating profit GBP 563m (down 1% cc). Resilient operating margin around 6.2% (6.0% excluding disposal gains). Adjusted basic EPS 80.8p (up 13% year-on-year; +17% in constant currency). Return on capital employed 29%.
Excellent cash generation and disciplined capital returns
Free cash flow of GBP 315m (104% conversion to adjusted profit after tax). Returned around GBP 340m to shareholders during the year through dividends and buybacks (dividends GBP 101m; buybacks GBP 238m). Since Aug 2024 repurchased GBP 400m of shares (reducing shares by ~13%). Announced a new GBP 175m share buyback program. Dividend per share 32.3p, up 13%.
Outperformance vs market and volume growth
Group market volumes grew 2% in 2025 while Inchcape grew volumes by 3% (organic volume growth 3%), outperforming broader market. Organic revenue growth 1% for the group.
Regional successes — Americas and Europe & Africa
Americas: market volumes and organic revenue up 8%; operating margins up 70 basis points to 7.0%; record PBT in the Americas. Europe & Africa: market volumes +3% and organic revenue +6%; region delivered record top- and bottom-line performance; contribution from distribution contracts and the Iceland acquisition performing well.
Distribution contract wins and strengthened OEM portfolio
Won 10 new distribution contracts in 2025 (examples: New Holland in Ethiopia/Kenya; BYD in Lithuania/Latvia; XPENG in Colombia; GAC AION in Greece; smart in Colombia/Uruguay/Ecuador; Iveco in Hong Kong). Over 50 contracts won since 2019, supporting future organic growth and resilience.
Balance sheet strength and low leverage
Closing leverage described at 0.4x (well within self-mandated headroom of 1x), giving capacity for further buybacks and bolt-on M&A while retaining disciplined capital allocation.
Operational improvement and margin discipline
Overhead-to-revenue ratio improved (overhead ratio fell by ~20 basis points). Continued cost discipline, capital recycling and optimization (divestment gains GBP 17m). Group reiterated medium-term margins target circa 6% and free cash flow conversion around 100%.
Employee and customer metrics
Employee engagement score 81% (up 4 points year-on-year). Reputation.com score improved by 6%, reflecting stronger customer reputation across markets.
Technology and commercial initiatives
Expanded AI usage across sales & operations and parts pricing; launched a vehicle pricing algorithm in Chile. Increased penetration of higher-margin value-added services (aftersales gross profit up ~4% underlying) and continued rollout of financed insurance products and OEM certified parts.
Medium-term targets reiterated
Reiterated medium-term ambitions: generate GBP 2.5bn free cash flow to 2030, deliver >10% EPS CAGR to 2030, and maintain disciplined capital allocation (dividends at c.40% of earnings, buybacks and bolt-on M&A while keeping leverage below 1x).