Rexel Continues To Execute, But Is Caught Up In Cautious Markets

2025-04-29 17:50:19 ET

Summary

• Rexel SA has shown resilience amid market uncertainty, outperforming many of its primary competitors and suppliers.
• Q1 sales results were on target, with solid performance in North America and modest growth in Europe despite ongoing macroeconomic challenges across multiple markets.
• Rexel's self-help initiatives, including digitalization and AI, should continue to drive revenue and margin improvements, with further leverage from eventual end-market recoveries.
• Despite macro risks, I see 20% upside potential for Rexel shares, with long-term growth driven by improved execution, market recoveries, and productivity initiatives.

Uncertainty is arguably the worst environment for businesses. In many cases you can plan around adverse policies, but it’s all but impossible to plan when policies change almost weekly and multiple macro indicators are pointing in various directions. Such is the case today, though, and that makes life more challenging for Rexel S.A. ( OTCPK:RXEEY ) ( OTCPK:RXLSF ) (RXL.PA), a large French distributor of electrical products to construction and industrial end-markets....

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