Inchcape PLC shares fell on Tuesday after it said it expects organic volume growth towards the lower end of its guidance range in 2026.
Shares in Inchcape were down 8.4% at 797.00 pence on Tuesday morning, giving it a market capitalisation of £2.85 billion. The wider FTSE 250 index was down 2.3%.
The London-based automobile distributor said pretax profit edged down 1.9% to £406 million in 2025 from £414 million in 2024, as revenue fell 1.8% to £9.10 billion from £9.26 billion.
Inchcape reported diluted earnings per share attributable to the owners of the parent of 71.6 pence, down 30% from 101.9p, but diluted EPS from continuing operations climbed 9.1% to 71.6p from 65.6p.
Inchcape said volumes were up 3% in 2025, driven by market share gains and distribution contract wins. Organic revenue was 1% higher with improved momentum in the second half of the year, while reported revenue was hit by currency headwinds.
Inchcape declared a final dividend of 22.8 pence per share for a full-year payout of 32.3p, up 13% from 28.5p in 2024.
Separately, the firm launched a share buyback programme for up to £175 million, to be conducted by UBS Group AG.
The share buyback programme will be completed by March 5, 2027. The company completed a £250 million buyback programme last week.
Looking ahead, Inchcape said it expects organic volume growth towards the lower end of its 3% to 5% guidance range in 2026, with performance weighted towards the second half of the year.
It expects ‘resilient’ operating margins of around 6%. The adjusted operating margin narrowed to 6.2% in 2025 from 6.3% in 2024.
Inchcape also forecasts free cashflow conversion of around 100% and adjusted earnings per share growth of more than 10%.
‘During a transformative year in the automotive sector in FY 2025, Inchcape’s diversified and scaled business model delivered results in line with our medium-term targets, reporting double-digit EPS growth. Our performance in 2025 was driven by good momentum in our Americas and Europe and Africa regions and we are taking actions to address challenges in [Asia Pacific],’ said Chief Executive Duncan Tait.
‘Looking ahead, we expect to deliver a year of growth in FY 2026, including adjusted EPS growth of [more than] 10%, with volume growth, resilient margins, supported by strong execution and discipline on costs, and cash conversion.’
Inchcape will provide a trading update for the first quarter on April 30.
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