Inchcape increases shareholder returns as raises annual guidance

Inchcape PLC on Monday hiked its dividend and increased the size of its share buyback, as it raised its guidance for organic growth in 2026.

Shares in the London-based automotive distributor were down 1.3% to 811.00 pence late Tuesday morning in London. The wider FTSE 250 index was up 0.1%.

Pretax profit was £124 million in the six months that ended June 30, down 33% from £186 million a year before, despite revenue rising 9.3% to £4.72 billion from £4.32 billion.

Gross profit increased by £21 million to £754 million from £733 million, but operating expenses increased by £70 million to £570 million from £500 million. Included in operating expenses was £50 million in restructuring costs, up from just £6 million a year before. Inchcape also paid higher finance costs and had slightly lower finance income in the recent half-year.

Basic adjusted earnings per share and diluted adjusted EPS each were steady on-year at 35.5 pence and 34.0p, respectively.

Inchcape expects more than 10% growth in adjusted EPS for the full year. The company booked 80.8p in adjusted EPS for 2025, up 13% from 71.3p in 2024. That would suggest adjusted EPS of at least 88.88p in 2026.

"Inchcape continued to deliver on our 'accelerate+' strategy during the first half of 2026, supported by our diversified and scaled market and brand portfolio, with our volume growth of 9% driven by distribution contracts won in recent years," Chief Executive Duncan Tait said.

He added: "We delivered positive momentum in the Americas, with supportive market conditions, and continued outperformance in Europe & Africa. In APAC, we saw a stabilising position in Asia, while our market share in Australia was weaker."

Inchcape repeated previous guidance for 2026 results to be second-half weighted, with an anticipated uplift in new vehicle volumes of 20,000 vehicles in July to December from 180,000 vehicles distributed by Inchcape in January to June. This is a similar volume uplift between the first and second halves as was achieved last year, the company noted. It expects organic volume growth at the top of its previous 3% to 5% guidance range.

Inchcape has upped its interim dividend by 14% to 10.8p per share from 9.5p. In addition, it has increased the size of its buyback programme to £250 million from £175 million. The buyback will continue to be run by UBS AG London Branch.

"The increased share buyback programme is part of the group's disciplined capital allocation approach and is based on Inchcape's strong underlying free cash flow performance, as well as the group's strong balance sheet. The increased buyback also demonstrates the board's confidence in the group's future prospects and ability to deliver significant future shareholder returns."

Copyright 2026 Alliance News Ltd. All Rights Reserved.