Pepco Group First Take 1H26 EBITDA Beat and Updated Capital Allocation

Pepco Group reported 1H26 EBITDA and gross margin beats, raised FY26 margin guidance, and announced a new €400mn special buyback policy.

Key Takeaways

• 1.Pepco delivered a strong 1H26 result with adj. EBITDA of €516mn (up 17.5% yoy), exceeding consensus expectations.
• 2.Gross margins expanded significantly by 250bps to 49.7%, leading to an upgrade in FY26 gross margin guidance.
• 3.A new capital allocation policy includes a special €400mn one-time share buyback in FY26 and a target 40% dividend payout ratio.

Table of Contents

• News
• Current trading
• FY26 guidance updated
• Updated capital allocation policy
• What does this mean?
• Valuation
• Key downside risks
• Disclosure Appendix

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