Rexel Boosted by North America, Yet Europe Lags Behind
Rexel started 2026 on a positive trajectory with sales of €4,736.9 million, up by 3.4% on a constant day basis. However, this growth is primarily driven by the robust North American market (+5.8%), while Europe, accounting for 50% of the group's revenue, shows only a modest return to positive territory (+0.6%). Amid an uncertain environment, Rexel strengthens its position through the acquisition of Techno-Contact 360 in Canada and by accelerating its digital penetration.
Divergent Growth Trajectories Across Regions
In the first quarter of 2026, Rexel achieved sales of €4,736.9 million, marking a 3.4% increase on a constant day basis. However, this growth masks divergent trajectories across different regions. North America, representing 44% of the group's sales, recorded the most significant increase with a 5.8% rise on a constant day basis. Asia-Pacific followed with an 11.4% increase, although this region accounts for just 6% of total revenue. In Europe, which makes up 50% of sales, growth was only 0.6% on a constant day basis, reflecting a more constrained market environment. On a reported basis, sales declined by 1.8%, affected by calendar effects and negative currency fluctuations.
Strategic Repositioning and High-Value Segment Penetration
Alongside organic growth, Rexel continues its strategic repositioning towards high-value segments. Digital penetration reached 36% of sales in Q1 2026, up by 217 basis points compared to the previous period. On April 20, the group finalized the acquisition of Techno-Contact 360 in Canada, a company that generated 85 million Canadian dollars in revenue over the last 12 months. This acquisition enhances Rexel's expertise in electrical distribution, industrial automation, and data centers, a segment expected to represent over 50% of TC 360's estimated sales in 2026-2027. It fits into the strategy of building an industrial services platform in Canada, in conjunction with previous acquisitions (Jacmar, Apex), demonstrating the group's ability to quickly adapt its structure in the face of market uncertainty.
Firm Goals for 2026 Amidst Market Challenges
Rexel has reaffirmed its targets for 2026: sales growth between 3% and 5% on a constant day basis, an adjusted current EBITA margin of about 6.2%, and a free cash-flow conversion rate exceeding 65%. These targets reflect the group's confidence in its ability to navigate the current environment, relying on its capacity to pass on price increases, offset rising energy costs, and capture emerging market demand from the energy transition. The group also anticipates commercial optimization through the use of artificial intelligence tools to focus its resources on high-growth segments. Rexel remains dependent on the resilience of its geographical markets, particularly the continued momentum in North America.
