Inchcape (LON:INCH) Announces Quarterly Earnings Results

Inchcape (LON:INCH) issued its quarterly earnings data on Tuesday. The company reported GBX 80.80 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Inchcape had a return on equity of 35.43% and a net margin of 4.81%.

Here are the key takeaways from Inchcape’s conference call:

• Delivered a strong 2025: revenue £9.1bn, adjusted PBT £443m (+3% cc), EPS +13%, free cash flow £315m, closing leverage 0.4x, and a new £175m share buyback after returning ~£340m to shareholders.
• APAC underperformed—organic revenue fell ~12% and volumes were down ~1%, margins contracted ~60bps; management has launched cost reductions and flags production/supply disruption risks in H1 2026.
• Continuing to execute the “Accelerate Plus” strategy with 10 new distribution contracts, a healthy bolt‑on M&A pipeline, and reiterated medium‑term targets (including £2.5bn FCF to 2030 and >10% EPS CAGR6% margins, ~100% FCF conversion and >10% EPS growth.
• BYD is increasingly insourcing distribution in medium/large European markets (Benelux contract noted), which presents a potential commercial risk for distributor-led markets even though management describes the move as isolated.
• Higher‑margin aftersales and tech levers are growing: aftersales grew ~4% (outpacing new vehicle volumes), while AI-driven pricing and parts/finance & insurance initiatives are being scaled to boost margins and recurring revenue.

Inchcape Trading Up 3.0%

Inchcape stock opened at GBX 829.50 on Thursday. The stock has a 50-day moving average price of GBX 815.38 and a 200 day moving average price of GBX 754.27. Inchcape has a 52 week low of GBX 575 and a 52 week high of GBX 895. The stock has a market cap of £2.98 billion, a PE ratio of 7.90, a P/E/G ratio of 2.06 and a beta of 0.88. The company has a current ratio of 1.09, a quick ratio of 0.51 and a debt-to-equity ratio of 301.07.

Analysts Set New Price Targets

Separately, Deutsche Bank Aktiengesellschaft lifted their price target on Inchcape from GBX 800 to GBX 830 and gave the stock a “buy” rating in a research note on Wednesday. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of GBX 996.25.

Inchcape announced that its board has approved a share repurchase plan on Tuesday, March 3rd that authorizes the company to buyback 0 outstanding shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In other news, insider Byron Elmer Grote purchased 5,000 shares of the stock in a transaction dated Monday, December 8th. The stock was acquired at an average cost of GBX 758 per share, for a total transaction of £37,900. 9.43% of the stock is owned by corporate insiders.

About Inchcape

Inchcape is the leading global automotive distributor, with operations across six continents. By combining our in-market expertise with our unique technology and advanced data analytics, we create innovative customer experiences that deliver outstanding performance for our partners – building stronger automotive brands and creating sustainable growth. Our distribution platform connects the products of mobility company partners with customers, and our responsibilities span product planning and pricing, import and logistics, brand and marketing to operating digital sales, managing physical sales and aftermarket service channels.