Inchcape Lowers 2026 Outlook After Australian Volume Plunge

Inchcape PLC lowered its full-year 2026 operating margin outlook to approximately 5.5%, down from a previous forecast of 6%. The automotive distributor also adjusted its expected adjusted earnings per share growth to around 10%, a slight decrease from its previous guidance of more than 10%.

The revision follows a sharp decline in Asia-Pacific volumes, which fell 37% in the third quarter. This downturn was driven primarily by a 50% plunge in Australian volumes, which the company attributed to fuel-related disruptions accelerating the shift toward new energy vehicles and a loss of competitiveness from a key brand partner.

Chief Executive Duncan Tait stated that Australia remains a challenge and noted that a key brand has underperformed. In response, the company is conducting a comprehensive review of its product range and positioning with its brand partner. Despite the regional decline, Inchcape reported growth in its Americas and Europe & Africa businesses and maintains a medium-term goal of over 10% compound annual EPS growth through 2030.