RS Group PLC (LSE:RS1) issued a trading update Thursday ahead of its annual general meeting, highlighting continued solid operational progress while reaffirming its full-year outlook.

Despite this, the company’s shares fell 1.5% in London trading as of 08:35 GMT.

For the first quarter ending June 30, 2025, the company reported that performance in the EMEA region was affected by weaker PMI readings, whereas activity in the Americas and Asia Pacific remained more robust.

On a like-for-like basis, revenue decreased 2% year-on-year. However, RS Group emphasized that when removing temporary impacts from ongoing operational improvements—such as the digital platform upgrade in the Americas and the consolidation of a Distrelec distribution center in EMEA—trading was broadly stable.

Stifel analysts described this as “a solid performance in a volatile macro backdrop from 1 April to 30 June given the evolving global tariff environment.”

They kept their Buy rating on RS Group, highlighting valuation appeal as the stock trades at roughly a 20% discount to its 10-year EV/EBITDA average.

The analysts added, “We see upside from stabilising (then improving) trading trends and delivery against the strategic objectives set out in the September 2024 CMD.”

Looking forward, RS Group remains committed to enhancing its product offering, growing market share, and boosting operational efficiency.

The company stated, “We are confident that this will generate sustainable value and stronger returns as markets recover, in line with our medium-term financial targets.”

Following the update, Morgan Stanley analysts noted they “don’t expect consensus to move today.”

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