Inchcape, a London-headquartered global automotive distributor, reported third-quarter 2026 revenue of £2.5 billion, representing growth of 7% year-over-year. The company delivered organic revenue growth of 1% and total vehicle volume growth of 3%, supported by strong performance in the Americas, Europe, and Africa, partially offset by substantial weakness in Australia.
The results reflected continued expansion of Inchcape’s global automotive distribution operations, including contributions from recent acquisitions and distribution agreements secured in previous years.
Revenue rose 5% at constant exchange rates, while organic revenue grew 4% in the first nine months of 2026.
Despite overall revenue growth, Inchcape lowered its full-year operating margin expectations due to ongoing challenges in the Australian automotive market.
The company now anticipates an adjusted operating margin of about 5.5% for 2026, with adjusted earnings per share growth of about 10%.
Inchcape maintained its expectation for organic vehicle volume growth at the upper end of its previously communicated 3% to 5% guidance range.
The Americas remained a major source of business momentum during the third quarter. Inchcape reported a 10% increase in regional vehicle volumes, supported by broad-based growth across its automotive brand portfolio, including Chinese vehicle manufacturers.
Total industry vehicle volumes in the region increased 24%, reflecting favorable market conditions, although Inchcape’s relative performance was affected by supply disruptions in certain markets.
The company also secured a new distribution agreement for Lovol Tractors in Peru, adding to its regional automotive and equipment distribution portfolio.
Inchcape continued pursuing acquisitions to strengthen its presence in the Americas, announcing a bolt-on transaction during the quarter involving two important original equipment manufacturers.
The acquisition is intended to broaden its product and brand portfolio while supporting additional opportunities for regional expansion.
Europe and Africa delivered particularly strong volume performance, with total Inchcape volumes increasing 21% year over year. Organic vehicle volume growth reached 16%, significantly outperforming broader industry volume growth of approximately 2%.
The region benefited from strong performance across established automotive brands, new distribution agreements with Chinese manufacturers, and contributions from recent acquisitions.
Inchcape also reported positive results from acquisitions in Iceland and Bulgaria, including the purchase of Silver Star, a Mercedes-Benz distributor in Bulgaria, completed during the first half of 2026.
These investments have helped expand the company’s relationships with vehicle manufacturers and strengthen its distribution network across European markets.
Performance in Asia-Pacific was considerably weaker, with Inchcape reporting a 37% decline in regional vehicle volumes despite a 5% increase in total industry volumes.
Australia accounted for a significant portion of the decline. Inchcape’s vehicle volumes in the country fell 50%, compared with total industry volume growth of 1%.
The company attributed the underperformance to changing market conditions, including fuel-related disruptions that accelerated consumer demand for new energy vehicles.
These shifts were compounded by deteriorating competitiveness at Inchcape’s principal automotive brand partner in Australia, placing additional pressure on volumes and profitability.
In response, Inchcape is implementing restructuring measures, reviewing its product range and market positioning with its brand partner, and pursuing further portfolio optimization.
The company also confirmed a mutually agreed exit from its Deepal distribution agreement in Australia.
Management expects the Australian market challenges to continue affecting performance, although it anticipates that its restructuring and portfolio initiatives will support improvement over time.
Elsewhere in Asia-Pacific, Inchcape is continuing cost reduction programs, collaboration with automotive manufacturers, and portfolio optimization measures intended to improve operating performance.
Despite the challenges in Australia, Inchcape reaffirmed its expectations for free cash flow conversion exceeding 100% in 2026.
The company also maintained its disciplined approach to capital allocation, combining acquisitions with shareholder repurchases.
Inchcape has made progress on its £250 million share buyback program, having repurchased approximately £170 million in shares. Since July 2024, the company has acquired approximately 18.5% of its outstanding shares.
Management expects adjusted earnings growth in 2026 to benefit from strong regional performance, favorable currency translation effects, and certain one-time tax benefits associated with corporate reorganization.
Looking further ahead, Inchcape reaffirmed its medium-term ambition of delivering compound annual adjusted earnings per share growth exceeding 10% through 2030.
The company expects future growth to be supported by its diversified relationships with automotive manufacturers, recent distribution contract wins, strong cash generation, and selective acquisitions.
Inchcape operates across six continents and employs more than 16,000 people worldwide. Its services include vehicle product planning, pricing, imports, logistics, marketing, sales, and aftermarket support for automotive manufacturers.
The third-quarter results demonstrate the benefits of Inchcape’s geographically diversified operations, while highlighting the operational challenges posed by rapidly changing vehicle demand and manufacturer competitiveness in Australia.
KEY QUOTES:
“Despite a challenging situation in Australia, Inchcape delivered a resilient performance in the third quarter reflecting our scaled and diversified business model and ongoing delivery against our Accelerate+ strategy. As anticipated, continued strong momentum in the Americas was underpinned by volume growth across our brand portfolio and, in Europe & Africa, broad-based growth across our core brands was also supported by recent contract wins and acquisitions. In addition, we made progress with our management actions to support our businesses in Asia.
Australia remains a challenge – our key brand has underperformed, with deteriorating competitiveness in a rapidly-evolving market. We are taking further decisive action there, alongside our existing restructuring activity. We are confident these actions will improve our business in Australia over time, but we expect the current challenges in that market to continue impacting our performance there.
As a consequence, we now expect a lower Group operating margin for FY 2026 of c.5.5%, with adjusted EPS growth of c.10%, underpinned by continued momentum in the Americas and Europe & Africa. Our performance for this year and over the medium term will continue to be driven by our diversified OEM and market portfolio, distribution contract awards in recent years, strong cash generation and disciplined capital allocation, through share buybacks and value-accretive acquisitions. These factors support our continued confidence in our medium term ambition of delivering >10% EPS CAGR to the end of 2030.”
Duncan Tait, Group Chief Executive Of Inchcape
