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Finance

Rexel raises outlook again as US data-centre demand, European electrification drive growth

Published by Global Banking & Finance Review

Posted on October 22, 2026

2 min read

· Last updated: October 22, 2026

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Rexel Raises Outlook Again on Data-Centre Demand and European Electrification Growth

Rexel's Financial Performance and Strategic Growth Drivers

By Leo Marchandon

Strong Sales Growth in Key Markets

Oct 22 (Reuters) - French electrical equipment distributor Rexel raised its full-year targets for the second time this year on Thursday after strong demand from U.S. data centres and Europe's electrification drive lifted third-quarter sales by 11.4%.

Sales Breakdown by Region

Over the first nine months, group sales rose 7.3% at to €15.44 billion ($17.28 billion), with the US up 10.7% at €6.08 billion and Europe up 3.2% at €7.15 billion.

Upgraded Outlook and Margin Expectations

Rexel now expects full-year sales growth of about 7%, up from about 5%, and an adjusted EBITA margin of at least 6.4%.

Market Dynamics and Executive Insights

Contrasting Market Sentiment and Business Results

"There is a real contrast between the nervousness of financial markets and results that show no sign of weakness or slowdown," Chief Executive Guillaume Texier told Reuters.

US Data-Centre Demand

Texier said the US remained the centre of the global data-centre buildout because the largest investors, including hyperscalers, were mainly building capacity in their home market.

European Electrification Trends

Rexel's European growth is being driven by what Texier described as a structural shift towards electrification, with demand for heat pumps, solar panels, EV chargers and air-conditioning systems continuing to expand.

Impact of Climate Change on Demand

"More and more, people in areas hit by heatwaves realise this is not a short-term phenomenon," he said.

Strategic Acquisitions and Future Outlook

GCG Acquisition and Funding

Texier said the GCG acquisition would add more than €1 billion of revenue and was expected to close by the end of 2026. The deal was partly funded through a 500 million euro share sale, leaving room for further acquisitions.

($1 = 0.8937 euros)

(Reporting by Leo Marchandon in Gdansk; Editing by Matt Scuffham)

Key Takeaways

  • Q3 group sales jumped 11.4%, lifting nine‑month revenues to €15.44 billion; U.S. grew 10.7% while Europe rose 3.2%.
  • Full‑year sales growth guidance upgraded to ~7% and adjusted EBITA margin targeted at a minimum of 6.4%, reflecting momentum in key growth segments.
  • Robust demand fueled by U.S. data‑centre build‑out and Europe’s electrification trend—heat‑pumps, solar, EV chargers—poses contrast to financial market nervousness.
  • Rexel’s M&A strategy continues with the GCG acquisition expected to add over €1 billion in revenue by end‑2026, supported by a €500 million share issue.

Frequently Asked Questions

Why did Rexel raise its full-year sales outlook?
Rexel raised its outlook due to strong demand from US data centres and a surge in European electrification projects.
How much did Rexel's group sales grow in the third quarter?
Rexel's third-quarter sales increased by 11.4% compared to the previous period.
What are the main drivers of Rexel's European growth?
European growth is driven by increased demand for electrification products like heat pumps, solar panels, EV chargers, and air-conditioning systems.
What is the expected impact of the GCG acquisition for Rexel?
The GCG acquisition is set to add over €1 billion in revenue and is expected to close by the end of 2026.
How has Rexel funded its latest acquisition?
Rexel partly funded the acquisition through a €500 million share sale, leaving financial flexibility for further potential acquisitions.

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