Rexel Reports on 2025 1st Half

Yesterday Rexel shared its 2025 Q2 and semi-annual results which sheds some insights into the state of the US electrical distribution market.

Some highlights from their presentation and financial statement, with a focus on the US

• Globally, first half revenues were 9.8 billion euros which represented a 1.6% same-day sales growth rate. Q1 had a growth rate of 1.4%, Q2 increased to 1.8%.
  • North America represents 45.4% of sales. US represents 82.9% of this revenue.
    • Interestingly, North America represented 54% of Rexel’s first half EBITDA.
  • North America Q2 sales “beat expectations” on higher volumes driven by datacenter and broadband sales (remember, Rexel acquired Talley last year so this will help them generate more opportunities in these segments and, in all likelihood, skews their product mix compared to traditional full-line electrical distributors.)
    • Data centers / broadband represents 12% of North America sales and contributed about 50% of Rexel’s Q2 sales growth!
  • North America same-day sales growth by quarter was 3.8% in Q1 and 8.7% in Q2 for an average of 7.5% after foreign exchange rates and a benefit of $179.2 million euros from acquisitions (Talley, Electrical Supplies Inc, Schwing and Jacmar.)
    • On a constant and same-day basis, sales increased 6.3% vs 2024.
    • Rexel North America’s stock vs project mix is 64.2% / 36.8%
    • “Rebates, discounts and services” represented .478% of total sales.
  • North American gross margin was 24.4% of sales and the current EBITDA is 7.2%
  • Business was good in the Gulf Coast, California, Southeast and Northeast (which includes where the two acquisitions are.)
  • Pricing was up mid-single digit with “progressive improvement throughout the quarter” (and in reality, some / much of this is tariff driven. So, 8.7% growth less price increases less benefits from acquisition and distributors can estimate organic growth to benchmark themselves.)
    • North America price increases were 6.3%
      • US same day sales increase was 6.1%
    • Digital, which is all electronic ordering, not solely eCommerce / website, represents 34% of company-wide sales. Rexel states in its report that “digital” is comprised of “web, EDI, and self-checkout solutions”.
      • For North America, digital represented 23.4% of sales, up 193 bps YoY.
    • 2 US acquisitions (Schwing and Warshauer) and one in Canada (JACMAR).
      • Schwing had 2024 revenues of $70 million and 110 FTE
      • Warshauer had 2024 revenues of $130 million and employed about 200 people.
      • JACMAR had revenues of $35 million CAD.
      • Check out page 30 of the financial statement if you’d like to know more.

So, while Q2 revenue was up, there was an inorganic sales lift.

• Wire and cable represent about 15% of the company’s global sales with copper about 60% of the composition of these products.
• Looking forward for the remainder of the year:
  • Feel that the market is “solid” for non-residential and industrial segments
  • Passing through tariffs “efficiently.”
  • Continued datacom / data center growth.

So, what does it all mean for Rexel?

Without other comparisons, not much, at least yet. The early read is essentially flat to slight growth organically on the electrical side. Winning business in the electronic side.

Another way of saying it is “plugging along”, however, the business is running profitably with a strong gross margin and a strong EBITDA. While the number of FTEs has risen, much of this is due to acquisitions (excluding Warshauer, due to timing.)

As expected, and similar to much of the industry, they are passing along price increases.

The noticeable absence of the word “residential” speaks volumes about that market as there have been times that Rexel has touted success here, especially given their strengths in Florida and the Southwest, but that is an indication of how “challenged” the residential market is everywhere.

Their digital is comparable to many and highlights the industry-wide challenge of driving customers to use the web. Rexel US is making investments in this area to bring more value to their customers.

So, do you think they took share, maintained share, or lost share nationally?

And how are they in your local market?