D'Ieteren H1 Profit Grows 8.4% Amid Automotive Struggles

D'Ieteren Group reported adjusted profit before tax (PBT) for the group share at EUR 482 million for the first half of 2026, marking an 8.4% increase at constant FX compared to the same period last year. The company’s sales remained broadly stable at EUR 6.1 billion, with a slight 0.7% rise at constant exchange rates. This top-line stability masked significant divergence across the group’s four main business units, where robust growth in Belron, PHE, and TVH offset sharp declines in the automotive dealership segment.

Trading cash flow for the group share improved by nearly 12% year-on-year to reach EUR 539 million. Free cash flow hovered near breakeven, as approximately EUR 150 million in expenditure for Spanish acquisitions at PHE was largely offset by an 89% surge in free cash flow from Belron. Corporate net financial debt stood at approximately EUR 300 million at the end of June, excluding intersegment loans, reflecting a manageable leverage position despite the heavy investment in expansion.

Belron and PHE Drive Group Performance

Belron emerged as the primary profit engine, with sales rising 8.3% at constant FX and adjusted operating profit increasing 16.5% to EUR 820 million. The division’s adjusted operating margin expanded by 160 basis points to 23%, contributing to a 28.6% jump in its adjusted PBT group share to EUR 308 million. Meanwhile, PHE continued its compounding growth trajectory, achieving sales growth of 10.4% and an 18.4% increase in adjusted PBT group share. TVH also contributed positively, posting 7.7% sales growth and a 16.9% rise in adjusted PBT, supported by favorable volume trends in the aftermarket parts sector.

Automotive Division Faces Structural Headwinds

In contrast, D'Ieteren Automotive faced a challenging environment with sales falling 10.8% and adjusted operating margin declining to 2.1%. The division’s adjusted PBT group share dropped by two-thirds, driven by a 2.4% decline in the Belgian new car market and increased competition. Management attributed the margin compression to regulatory changes and a reduced number of new model launches in the first half. In response, the group announced a transformation plan that includes a EUR 47.2 million impairment charge on retail dealerships and the potential loss of 344 jobs to align the cost base with the current market reality.

Outlook Reflects Mixed Second Half Expectations

According to data from GN markets/earnings, the group expects low to mid-single-digit adjusted PBT growth for the full year, implying near-zero growth in the second half. CFO Edouard Janssen indicated that the automotive segment’s weakness is expected to persist, as trends deteriorated throughout the first half and are not slated for immediate improvement. Belron faces a tougher comparable base in the second half, while new model launches, including the Skoda Epiq and smaller electric vehicles, are expected to support market share recovery in the automotive division, though timing remains uncertain.