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Resilient RS makes strategic progress

RS Group reported flat revenues for its 2025 financial year. Simon Pryce, RS Group CEO described it as “a resilient performance, particularly given the challenging macro-economic backdrop.”

Revenues fell 1% to £2.9 billion. Profit fell 10% to £274 million.

Added Pryce, “RS is now executing more effectively, performing as it should and taking market share. We are delivering restructuring and integration benefits, improving efficiency and managing costs appropriately whilst continuing to invest in our people, customers, product, experience, infrastructure and technology. This is strengthening our value proposition for all stakeholders.”

EMEA revenues were virtually flat down just 1% from £1.79 billion to £1.77 billion. Profit fell 10% to £201 million from £223 million.

Kate Ringrose, RS Group CFO cited weak industrial production and purchasing managers’ confidence across the region. “The UK market deteriorated, France was strong. In Germany RS was exposed to automotive and OEM weakness.”

On the upside RS enjoyed strong performance from corporate customers, its own brand RSPro business grew as did eProcurement.

In the Americas, revenues edged down 3% from £934 million to £907 million. Profit dipped 9% to £82 million from £89 million.

Ringrose said that the region returned to growth in Q4 following a weak market in the US and Canada. Mexico delivered a strong performance.

“Asia Pacific showed improved momentum throughout the year,” added Ringrose. Revenues grew 2% to £219 million. Operating profit rose 10% to £6 million.

“There was a greater focus on our industrial offer and high value customers,” she added. RS’s service solutions also showed strong growth in the region.

Achievements listed in 2025 by Simon Pryce included a global AI-powered search upgrade, a digital platform upgrade going live in the Americas, the introduction of a real-time product tracking system and tailoring localised digital infrastructure for Asia-Pacific to reflect local customer needs.

Planned for the 2026 financial year are the staggered implementation and enhancement of the digital platform across the Group, enhanced findability across the product range and utilising an Enterprise Data Platform to deliver machine earning, AI and insight to improve customer satisfaction.

RS has accelerated the closure of its distribution centre in the Netherlands, inherited with the acquisition of Distrelec. Product is being moved to RS Group’s distribution centre in Bad Hersfeld.

The benefits of the Distrelec and Risoul integration are “well ahead of plan,” says the company. RS has expanded distribution centres in /France and the US and upgraded the warehouse management system at its UK distribution centres.

Said Simon Pryce, “We are focusing on what we can control in markets that remain challenging, and we will continue to be agile in our execution and cost management whilst investing selectively for the future. We have a solid pipeline of acquisition opportunities to accelerate our strategy, supported by our strong balance sheet, and will remain value disciplined.”

He added, “Importantly, we are making significant underlying progress. This gives us increased confidence in our ability to deliver our medium-term financial targets through accelerated growth and much improved operating leverage once markets recover.”

Pryce struck a cautious note on the 2026 outlook.

“Markets remain challenging with Americas and Asia Pacific more resilient than EMEA and particularly the UK reflecting softer PMIs. We are monitoring the evolving global tariff environment which we expect to have limited direct impact on RS but are mindful of the indirect effect that tariffs might have on industrial production and confidence.”

We remain confident that once PMIs recover, structural industry trends will return our markets to growth. We are therefore focusing on what we can control and will remain agile in our execution and cost management and value disciplined in pursuing acquisition opportunities. We will also continue to make selective strategic investments to strengthen RS so that we are best placed to accelerate our growth, with much improved operating leverage, when markets recover.”