How Investors May Respond To Rexel (ENXTPA:RXL) Reconfirming Guidance and Adding Cevian Partner to Board

• Rexel reported third-quarter 2025 sales of €4.76 billion, representing 3% same-day growth, with strong contributions from high-growth sectors in North America, while reconfirming its full-year guidance for slightly positive sales growth, profitability, and cash flow.
• Additionally, the Board appointed Robert Schuchna, partner at Cevian Capital, as a non-independent member following a recommendation from Cevian, which owns about 23% of Rexel’s share capital.
• We'll assess how Rexel’s confirmation of full-year sales guidance amid tough European conditions shapes its investment narrative.

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Rexel Investment Narrative Recap

To be a Rexel shareholder, you have to believe in the company’s ability to leverage growth in North America, particularly within sectors like data centers and broadband infrastructure, while managing challenging conditions in Europe. The recent appointment of Robert Schuchna to the Board, given Cevian Capital's major stake, does not materially shift the near-term catalyst, continued outperformance in North America, nor does it mitigate the primary risk of ongoing European weakness.

Among recent announcements, Rexel's confirmation of its slightly positive full-year sales guidance is most relevant in this context. Despite ongoing macroeconomic pressures in Europe, management reaffirmed confidence in its operational footing and earnings resilience while maintaining profitability and cash flow targets, reinforcing the short-term reliance on non-European growth engines.

However, investors should keep in mind that against these renewed targets, ongoing softness in Europe remains a risk that...

Read the full narrative on Rexel (it's free!)

Rexel's narrative projects €21.5 billion in revenue and €879.6 million in earnings by 2028. This requires 3.4% yearly revenue growth and a €632 million increase in earnings from the current €247.6 million.

Uncover how Rexel's forecasts yield a €28.79 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members have posted two fair value estimates for Rexel ranging from €26.36 to €28.79. While opinions in the community vary, ongoing European market headwinds could continue to shape future performance, so compare viewpoints before concluding your outlook.

Explore 2 other fair value estimates on Rexel - why the stock might be worth as much as €28.79!

Build Your Own Rexel Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• Our free Rexel research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rexel's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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